Market Report: Dixons Carphone soars as Vodafone hangs up on Phones 4U
With markets in the US closed for Labor Day, the FTSE 100 was quiet
Tuesday 02 September 2014
One man’s loss is another’s gain – a hammer blow to Phones 4U sent rival Dixons Carphone soaring on the mid-cap index.
Vodafone has decided to it will no longer offer its contract deals through Phones 4U stores, a decision which “surprised and disappointed” the retailer.
It leaves Phones 4U in a tough spot – Vodafone contracts account for a big chunk of revenues and in January O2 pulled out of its stores. EE has also threatened to pull the plug on its relationship.
Not only does Vodafone’s decision potentially scupper reported plans for a float of private equity-backed Phones 4U later this year, the move provides a significant boost to recently merged electronics retailer Dixons Carphone, which shot up 23.8p to 368.4p.
With markets in the US closed for Labor Day, the FTSE 100 was quiet, closing just 5.56 points higher at 6,825.31.
ITV was the best performer, buoyed 7.5p to 218.7p by reports over the weekend that the US giant and its minority shareholder Liberty Global is considering a takeover bid. Liberum reckon the broadcaster could be valued at up to £11.6bn.
BAE Systems scored a double boost as star fund manager Neil Woodford name-checked the defence giant as an undervalued stock and Bank of America Merrill Lynch upgraded the company to a buy. BAE added 10.9p to 456p.
Supermarkets continued to drag, with the arrival of Mr Fix-It Dave Lewis at Tesco not enough to assuage fears.
Wm Morrison slumped 4p to 173.5p, while Tesco shed 4.4p to 225.55p and J Sainsbury lost 0.8p to 289.5p. But Marks & Spencer bucked the slump, climbing 11.1p to 441p.
Troubled oil and gas explorer Afren continued to fall after speculation over the weekend that the current investigation into unauthorised payments to executives could explore as much as $200m (£120m) in transfers. Afren slumped 2.9p to 94.6p.
Microchip maker CSR added 9p to 795p after US suitor Microchip Technology indicated any fresh offer for the company would likely be an all-cash affair. CSR last week revealed it had rebuffed an initial approach.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...