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Sky takeover: bidding war predicted as Comcast makes £22bn offer - business live Sky takeover: bidding war predicted as Comcast makes £22bn offer - as it happened
(about 9 hours later)
A late update: Rupert Murdoch’s 21st Century Fox have - finally - responded to Comcast’s offer.
Fox says:
New York, NY, February 27, 2018 - 21st Century Fox (“21CF”) notes the possible offer announcement made by Comcast Corporation (“Comcast”) for Sky plc (“Sky”).
21CF remains committed to its recommended cash offer for Sky announced on 15th December 2016.
We note that no firm offer has been made by Comcast at this point. A further statement will be made if appropriate.
Fox says it “remains committed” to its original offer, no bid raise yet. Will potentially reassess if Comcast offer progresses. https://t.co/mqNdCM5YHy
Breaking: Fox finally breaks its silence. 👉Says it's still committed to its offer for Sky👉Says no formal bid has been made by Comcast👉Will make further statement if appropriateBig question still remains - will they up their offer?https://t.co/nLvwWsuoxP pic.twitter.com/dRrfJn3cA6
Hints from new Federal Reserve chair Jerome Powell that there could be four rather than three US rate rises this year have pushed up the dollar and left stock markets flagging.
Despite Sky closing 20% higher at £13.31 - above the bid price from US group Comcast - the FTSE 100 ended in negative territory. European markets also ended the day marginally lower. The final scores showed:
The FTSE 100 finished 7.13 points or 0.1% lower at 7282.45
Germany’s Dax dipped 0.29% to 12,490.73
France’s Cac closed down 0.01% at 5343.93
Italy’s FTSE MIB bucked the trend, up 0.08% at 22,724.46
Spain’s Ibex ended down 0.02% at 9900.2
On Wall Street, the Dow Jones Industrial Average is currently down 21 points or 0.09%.
On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow.
Republican Claudia Tenney asks about more transparency during the blackout period around meetings.
Powell says, I would have to look at what you’re proposing. The blackout gives us a chance to do our thinking and come out and make an announcement, then after a day or two people can make speeches.
Generally it’s been seen as a good thing to step away for a period.
Democrat Denny Heck asks when America will get a raise, saying 2.9% wage growth is well below historic averages.
Powell says, in time wages should grow, but we really need to have more productivity.
Republican Barry Loudermilk asks about what the Fed is doing on cyber security to protect its data.
Powell says I’m going to put a high priority on it. We’ve done a good job but we can do better.
Democrat Joyce Beatty asks if the stock market is an indicator for the economy.
Powell says we don’t manage the stock market, it enters into our thinking, it’s not the economy but it plays a factor.
Democrat Ruben Kihuen asks what Fed or congress can do to combat wage inequality?Democrat Ruben Kihuen asks what Fed or congress can do to combat wage inequality?
Powell says our part is to try and achieve maximum employment, which we are doing. The only way for wages to go up is for productivity to go up, which needs investment. Those are things congress and the administration would be well advised to focus on.Powell says our part is to try and achieve maximum employment, which we are doing. The only way for wages to go up is for productivity to go up, which needs investment. Those are things congress and the administration would be well advised to focus on.
Democrat Gwen Moore asks if inflation target should be say 2.5%.Democrat Gwen Moore asks if inflation target should be say 2.5%.
Powell says we are committed with a 2% goal, equally concerned about undershoots and overshoots.Powell says we are committed with a 2% goal, equally concerned about undershoots and overshoots.
Moore asks about inequality in the US and brings up the tax reforms again. What concerns does the Fed have about income inequality.Moore asks about inequality in the US and brings up the tax reforms again. What concerns does the Fed have about income inequality.
Powell says there has been a stagnation of middle class median incomes. We need to have a better trained workforce.Powell says there has been a stagnation of middle class median incomes. We need to have a better trained workforce.
Moore asks if we will have this tremendous GDP growth after tax cuts, or will it be under 1%.Moore asks if we will have this tremendous GDP growth after tax cuts, or will it be under 1%.
Powell says the tax bill and budget agreement came after the December meeting. There will be a meaningful increment in demand over next couple of years from these things.Powell says the tax bill and budget agreement came after the December meeting. There will be a meaningful increment in demand over next couple of years from these things.
I expect wages to increase this year.I expect wages to increase this year.
Rothfus asked why is the inflation target 2%.Rothfus asked why is the inflation target 2%.
Powell says it gives us more room for manoeuvre, in terms of cutting interest rates if necessary. It oils the wheels of the economy and gives us more ammunition. It has become the global standard and it would not be difficult for a central bank to move from it.Powell says it gives us more room for manoeuvre, in terms of cutting interest rates if necessary. It oils the wheels of the economy and gives us more ammunition. It has become the global standard and it would not be difficult for a central bank to move from it.
Back on safer ground (probably) Republican Keith Rothfus says, there are four vacancies on Fed, can it fulfill its duties under those circumstances?Back on safer ground (probably) Republican Keith Rothfus says, there are four vacancies on Fed, can it fulfill its duties under those circumstances?
Powell says he would like vacancies filled, We don’t need all seven [Fed members] immediately but would be good to have more faces on the hall.Powell says he would like vacancies filled, We don’t need all seven [Fed members] immediately but would be good to have more faces on the hall.
Here’s a tricky one for Powell.Here’s a tricky one for Powell.
Democrat David Scott says Trump’s tax cuts help just 1%, budget cuts hit the Afro-American poor, there are changes to food stamp system. The Fed should get on our side. Trump is not on side of the American people.Democrat David Scott says Trump’s tax cuts help just 1%, budget cuts hit the Afro-American poor, there are changes to food stamp system. The Fed should get on our side. Trump is not on side of the American people.
Powell hesitates. He says, these are very important issues, i take it to heart, but they are not issues we have authority over.Powell hesitates. He says, these are very important issues, i take it to heart, but they are not issues we have authority over.
Scott says he was waiting for that. He says, there is no one better suitied. When you sneeze, Wall street tumbles. I know you have a deep compassion for people. You should say, hold on Mr President, this isn’t right.Scott says he was waiting for that. He says, there is no one better suitied. When you sneeze, Wall street tumbles. I know you have a deep compassion for people. You should say, hold on Mr President, this isn’t right.
Scotts time runs out before Powell can respond again.Scotts time runs out before Powell can respond again.
Democrat Stephen Lynch asks about whether the Fed is concerned about the risks of exchange traded funds [in the wake of recent market volatility]Democrat Stephen Lynch asks about whether the Fed is concerned about the risks of exchange traded funds [in the wake of recent market volatility]
Powell says, the markets were generally orderly through the volatility, I don’t think etfs were at the heart of what went on. We are talking to other agencies, it’s a question to be looked into.Powell says, the markets were generally orderly through the volatility, I don’t think etfs were at the heart of what went on. We are talking to other agencies, it’s a question to be looked into.
Republican Frank Lucas asks about the outlook for the economy.Republican Frank Lucas asks about the outlook for the economy.
Powell sayd, it does feel to me the next couple of years will be quite strong, should be good years for the economy and I would think should create a good environment.Powell sayd, it does feel to me the next couple of years will be quite strong, should be good years for the economy and I would think should create a good environment.
Chris Beauchamp, chief market analyst at IG, says:Chris Beauchamp, chief market analyst at IG, says:
The new Fed chairman appears to have his feet firmly under the desk. Not only has he managed to send the dollar flying higher, unseating GBPUSD and EURUSD in impressive fashion, but he has added to this by boldly stating that QE remains a tool that will firmly remain in the Fed’s armoury. At a time when QE is coming under criticism again, his defence will be taken as a sign that the Fed has not abandoned this powerful weapon, tightening cycle or no tightening cycle.The new Fed chairman appears to have his feet firmly under the desk. Not only has he managed to send the dollar flying higher, unseating GBPUSD and EURUSD in impressive fashion, but he has added to this by boldly stating that QE remains a tool that will firmly remain in the Fed’s armoury. At a time when QE is coming under criticism again, his defence will be taken as a sign that the Fed has not abandoned this powerful weapon, tightening cycle or no tightening cycle.
While equities wobbled as the Q&A session developed, investors seem to have warmed to his tone and careful approach. This first date appears to be going well, with markets apparently content that Powell is firmly in the Bernanke/Yellen mould that they know so well, and isn’t about to rock the boat.While equities wobbled as the Q&A session developed, investors seem to have warmed to his tone and careful approach. This first date appears to be going well, with markets apparently content that Powell is firmly in the Bernanke/Yellen mould that they know so well, and isn’t about to rock the boat.
Democrat Michael Capuano talks about the British ruling on the gender pay gap, and says there was a call for something similar in the US but the Trump administration stopped it. He says that is horrendous and for a fair economy, you need the numbers and the information for getting towards pay equity. Is the Fed interesting in pursuing some degree of investigation of how the financial institutions it oversees pay their employees.Democrat Michael Capuano talks about the British ruling on the gender pay gap, and says there was a call for something similar in the US but the Trump administration stopped it. He says that is horrendous and for a fair economy, you need the numbers and the information for getting towards pay equity. Is the Fed interesting in pursuing some degree of investigation of how the financial institutions it oversees pay their employees.
Powell says he is not familiar with these rules, this is for Congress. We have a job and we want to stick to that. I don’t think it’s a question for the Fed, it’s for others.Powell says he is not familiar with these rules, this is for Congress. We have a job and we want to stick to that. I don’t think it’s a question for the Fed, it’s for others.
Dollar index touches 5 1/2-week high during Powell testimony https://t.co/UuAzitzp8IDollar index touches 5 1/2-week high during Powell testimony https://t.co/UuAzitzp8I
#UST, #USD: Hawkish Powell - when asked about what would cause the Fed to hike more than 3 times, he says that Fed will update projections in March but he has become more confident. Expect EUR/USD to trade down to the low end of 1.21-1.26 range and 10y UST yield to break higher.#UST, #USD: Hawkish Powell - when asked about what would cause the Fed to hike more than 3 times, he says that Fed will update projections in March but he has become more confident. Expect EUR/USD to trade down to the low end of 1.21-1.26 range and 10y UST yield to break higher.
Democrat Gregory Meeks asks how much of the corporate tax cuts will go to wages rather than stock buybacks or dividends?Democrat Gregory Meeks asks how much of the corporate tax cuts will go to wages rather than stock buybacks or dividends?
Powell says there are estimates out there but we don’t have a Fed estimate of that kind of thing.Powell says there are estimates out there but we don’t have a Fed estimate of that kind of thing.
With the dollar rising and bond yields moving higher, equity markets are heading in the other direction. The Dow Jones Industrial Average is now down 78 points or 0.27%.With the dollar rising and bond yields moving higher, equity markets are heading in the other direction. The Dow Jones Industrial Average is now down 78 points or 0.27%.