London's stock market awaits next week the appointment of a new British finance minister following incumbent Gordon Brown's switch to prime minister. There could also be further developments surrounding the London Stock Exchange's bid to merge with its Milan rival.
The FTSE 100 index of leading shares finished at 6,567.40 points on Friday, down 165 points or 2.45 percent from a week earlier. Brown steps down as Chancellor of the Exchequer next week after ten years of steering Britain's economy. He will replace Tony Blair as prime minister and leader of the ruling Labour Party, who has also led the country since 1997.
In the absence of major scheduled corporate news next week, the market will focus on British economic data due Friday. The third and final estimate of British growth data for the first quarter will be published on June 29.
The same day, up to 130,000 British postal staff will stage a 24-hour strike - the first national walk-out by the sector in more than a decade - in a row over pay and conditions. Further strike action against the semi-privatised Royal Mail could follow early in July, the Communication Workers Union (CWU) warned on Thursday.
Investors were next week also expected to keep a close eye on a possible merger for the London Stock Exchange. The board of directors at the Milan stock exchange, Borsa Italiana, has given its backing to a proposed merger with the London Stock Exchange, Ansa news agency reported Friday.
Borsa Italiana administrator Massimo Capuano received authorisation from the board to work out details of the deal, which will take place through an exchange of shares, the agency said. It added that the board of the combined company would have 12 members, seven from the LSE and five from Borsa Italiana.
A tie-up would allow the two markets to break out of their isolation in a sector that is undergoing increasing consolidation.
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