Bid talk for Vodafone and forex bank fines prompt a FTSE rally - London Report

SPECULATION of a takeover bid for telecommunications giant Vodafone sent its share up yesterday – and the FTSE 100 along with it. Britain’s top share index climbed back towards earlier record highs also buoyed by gains in major bank stocks.

The blue-chip FTSE 100 index ended up 0.2 per cent at 7,007.26 points, close to a record high of 7,122.74 points set in April. The index is up around seven per cent since the start of 2015.

Barclays and Royal Bank of Scotland were among several major banks to plead guilty yesterday to trying to manipulate foreign exchange rates. Six banks were fined a total of nearly $6bn (£3.86bn) in a settlement that substantially ends a global probe into misconduct in the $5-trillion-a-day market. Barclays and RBS’ shares both rose as traders expressed relief that the fine was now out of the way and lower than expected.

Vodafone’s rise offset the negative impact on the FTSE from a five per cent decline at Burberry, after the high-end clothing retailer cut its 2016 profit guidance.

Related articles