Trading on the UK stock markets is relatively unchanged this morning, as BA's need to increase its fuel surcharge has not been taken too well.
The FTSE 100 index is currently down 4.5 points or 0.1% to 4333 along with the FTSE All-Share index and the FTSE 250 index, both down to 2151 and 5979.9 respectively.
Reporting its latest business figures this morning, BA said it has met its first quarter net income target of £70m but will have to more than double its fuel surcharge on long haul flights because of the climbing oil price. BA gained 2p or 0.9% to 211p.
Unsurprisingly, Abbey National’s share price is up again this morning after speculation this weekend Lloyds TSB is about to step into the bidding arena. Abbey’s share value is up 6.5p or 1.1% to 584.5p as newspapers report Banco Santander will up its bid to fend off offers from Lloyds TSB and others. As a result of such talk, Lloyds TSB’s share price is down 1.1% to 416.25p.
In Asia today, markets reliant on business in the United States reacted badly to news from the US of lower job uptake than previously hoped, as such moves will impact the profit potential of Asian companies.
The Japanese Nikkei 225 index eventually closed down 0.6% to 10,908.7 but it was actually buoyed by the latest bid for banking giant UFJ, which now says it will consider the unsolicited bid from Sumitomo Mitsui. This is likely to create a bidding war between Sumitomo and Mitsubishi Tokyo Financial Group.
The bank said it will now consider an unsolicited offer from Sumitomo Mitsui Financial Group Inc., setting the stage for a takeover battle between Sumitomo Mitsui and Mitsubishi Tokyo Financial Group Inc. to create the world's largest bank.
Canon, however, eventually closed down 1.2% to Yen 5,130 while Sony dropped 1.6% to Yen 3,690.
And in the US on Friday, the markets took a beating as a result of that jobs report. The Nasdaq was hit hardest, closing down almost 2.5% or 44.74 points to 1,776.8.
The Dow Jones also fell 147.7 points or 1.48% to 9,815 while the S&P 500 index dropped 16.7 points or 1.55% to 1,063.9.IFAonline
£300bn of liabilities
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