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FTSE100 ends higher as new Greek proposal creates optimism

Investors looked to a brighter future for Greece as its PM Alexis Tsipras submitted a new austerity plan.

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The bell tolls for Greece as it finally capitulated to creditor demands

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FTSE100 closed out the week over 91 points higher as traders cheered latest moves in Greece.

But not all were so happy about the latest Greek submission to its EU creditors, with the Deutsche Boerse boss questioning whether Athens would stick to its pledges.

FTSE100 closed at 6,673, up 1,39% with financial stocks Prudential (LON:PRU) and Standard Life (LON:STAN) buoyed by a note from Barclays, which lifted target prices on both stocks.

The Pru rose 2.36% to 1,603.5p, while Standard Life added 4.22% to 452.3p.

Greek PM  Alexis  Tsipras submitted a new reform package last night, which ministers in the Eurozone must agree to and it is yet to be debated by the Greek Parliament.

It left many confused as the measures would raise   €4bn in taxes more than the one rejected by the Greek public in last week’s referendum.

If the proposals are accepted, Greece may get a €54bn three year loan.

A week is a long time in financial news, and politics, it seems, as Chris Beauchamp, at IG, said: "The week is ending on a sunny note in London, and not just weather wise.

"All the problems of the past week appear to be slipping away. Chinese equities have bounced, Greece seems to have bowed to the inevitable and acceded to its creditors’ demands, and even the dollar is moving lower thanks to diminishing fears of a US rate hike."

On the corporate front,  British Airways owner IAG (LON:IAG) has seemingly tied up the acquisition of Aer Lingus after Ryanair (LON:RYA) agreed to accept the offer.

Ryanair owns 29.8% of its rival having being thwarted in its own attempts to buy it.

Shares in IAG rose 3.21% to 531p, while Ryanair (LON:RYA) added 2.23% to 12.38p.

Top hotels are an expensive commodity, but if you are selling it’s not so bad.

Intercontinental Hotels (LON:IHG) gained 3.07% to 2,686p as it sold the Intercontinental Hong Kong to a consortium of investors for US$938mln. The buyers have also generously agreed to fund a significant refurbishment of the Hotel while IHG has a 37-year management contract.

 

In other news, Tunisia - the African country - comes under the spotlight after Britain has now decided to pull out UK tourists there in the wake of the atrocity two weeks ago.

Tui (LON:TTG) shrugged it off and rose 3.66% to1,077p, while Thomas Cook nudged up 0.87% to 127.7p.

Meanwhile, the tensions between telecoms titan BT (LON:BT.A) and Sky (LON:SKY) ratcheted up a notch as the former called on Ofcom to tackle Sky's dominance of the UK pay-TV market and asked to change the scope of the regulator's review. BT (LON:BT.A) rose 14.05% to 455.1p while Sky (LON:SKY) added 2.01% to 1,065p

In oil news, FTSE250 services group Petrofac (LON:PFC) saw shares add 1.82%% as it secured a big US$780mln contract from Kuwait Oil Company.

Among the small caps, fund manager Neil Woodford continues to splash his investors’ money in the biotech sector.

 

The star fund manager is putting up almost half of ReNeuron’s (LON:RENE) mega £68mln fund raise.

His reputation is such the shares rose by almost 18% to 5.75p despite the company claiming it was the largest amount raised by a biotech of its type this year.

Sirius Minerals (LON:SXX) expects to complete a definitive feasibility study for the York Potash project by the fourth quarter. Project financing, for the mine’s first stage, is expected to follow in the first quarter of 2016. Shares fell 10.59% to 19p.

Mwana Africa (LON:MWA) was a big riser, heading up 25.58% to 1.35p as it instigated a round of head office cost cutting following boardroom changes last month.

The Zimbabwe -focused nickel and gold miner has made twelve positions redundant, including a senior manager and corporate office staff. Advisers and consultants have also been cut back, it said.

 

Another notable gainer was tech group Proxama (LON:PROX), which gained 14.52% to 1.77p.

US OPEN

US shares opened higher, with the market cheered by what looks like a last minute reprieve for Greece and a rally in Chinese shares.

Greek Premier Alexis  Tsipras submitted a new reform package last night, which ministers in the Eurozone must agree to and it is yet to be debated by the Greek Parliament.

But the signs look positive and that Greece's paymasters may be appeased, after all.

If the proposals are accepted, Greece may get a €54bn three year loan.

But Alastair McCaig, at IG Index, noted: "There still remains the tricky issue of the Greek parliament approving this proposal, which was by and large rejected in a national referendum less than a week ago.

"Assuming that the Greeks can all agree with themselves we would then need to see the creditors approve this proposal over the weekend. Of course the more cynical market observer will be asking themselves how reliable a Greek promise is anyway."

Meanwhile, in Asia, it looks like measures from the Chinese government to prop up the tumbling Shanghai market may be at last having an effect.

Moves have included banning major investors from selling shares and a suspension of IPOs.

At the time of writing, the benchmark Dow Jones Industrial Index rose 34 points to 17,549, while the Nasdaq added 12 points to 4,922.

The broader based S&P500 gained just four to stand at 2,051.

Earnings season for the US banking season kicks off on July 15 and notably Bank of America Corp was up over 2% on the day. Recent media reports suggest the figures may beat market expectations.

Cablevision rose over 8% after it posted strong quarterly numbers earleir in the week.

In London, FTSE100 is up over 91 points.

British Airways owner IAG (LON:IAG) has seemingly tied up the acquisition of Aer Lingus after Ryanair (LON:RYA) agreed to accept the offer.

Ryanair owns 29.8% of its rival having being thwarted in its own attempts to buy it.

 

Shares in IAG rose 2.3%, while Ryanair (LON:RYA) added 2.8%.

London afternoon

Investors celebrated as Greece PM Alexis Tsipras submitted a new austerity plan to ensure the monetary taps stay turned on.

FTSE 100 rose 98 points to 6,680, with other markets in Europe also registering strong gains, as investors digested what after weeks of wrangling seemed to be capitulation by the Greek government to creditor demands.

Commentators noted the plan would raise   €4bn in taxes than the one rejected by the Greek public in last week’s referendum.

Tsipras said he had received a mandate in the referendum to negotiate a better deal, not to take the country out of the eurozone.

If the proposals are accepted, Greece may get a €54bn three year loan.

London’s blue chips climbed, possibly in relieve that the seemingly never-ending saga may be over, at least for a few weeks.

On the market itself, British Airways owner IAG (LON:IAG) has seemingly tied up the acquisition of Aer Lingus after Ryanair (LON:RYA) agreed to accept the offer.

Ryanair owns 29.8% of its rival having being thwarted in its own attempts to buy it.

Shares in IAG rose 3% to 529p, while Ryanair (LON:RYA) added 2% to 12.38p.

Top hotels are an expensive commodity, but if you are selling it’s not so bad.

Intercontinental Hotels (LON:IHG) gained 3.1% to 2,687p as it sold the Intercontinental Hong Kong to a consortium of investors for US$938mln. The buyers have also generously agreed to fund a significant refurbishment of the Hotel while IHG has a 37-year management contract.

In other news, Tunisia - the African country - comes under the spotlight after Britain has now decided to pull out UK tourists there in the wake of the atrocity two weeks ago.

Tui (LON:TTG) shrugged it off and rose 26p to, while Thomas Cook nudged up 1p to 127.7p.

Insurers got a boost from a sector wide upgrade by Barclays. Prudential rose 34p to 1,601p

Meanwhile, the tensions between telecoms titan BT (LON:BT.A) and Sky (LON:SKY) ratcheted up a notch as the former called on Ofcom to tackle Sky's dominance of the UK pay-TV market and asked to change the scope of the regulator's review. BT (LON:BT.A) rose to 453.1p while Sky (LON:SKY) added 17p to 1,061p

In oil news, FTSE250 services group Petrofac (LON:PFC) saw shares add almost 3% as it secured a big US$780mln contract from Kuwait Oil Company.

Among the small caps, fund manager Neil Woodford continues to splash his investors’ money in the biotech sector.

The star fund manager is putting up almost half of ReNeuron’s (LON:RENE) mega £68mln fund raise.

His reputation is such the shares rose by 20% to 5.85p despite the company claiming it was the largest amount raised by a biotech of its type this year.

Sirius Minerals (LON:SXX) expects to complete a definitive feasibility study for the York Potash project by the fourth quarter. Project financing, for the mine’s first stage, is expected to follow in the first quarter of 2016. Shares fell 13% to 18.5p.

Mwana Africa (LON:MWA) was a big riser, heading up over 25% to 1.34p as it instigated a round of head office cost cutting following boardroom changes last month.

The Zimbabwe -focused nickel and gold miner has made twelve positions redundant, including a senior manager and corporate office staff. Advisers and consultants have also been cut back, it said.

MOST FOLLOWED

The uplift in global markets following the Greek announcement,  IAG (LON:IAG) and Aer Lingus and BT were topics attracting web hits on Friday.

Markets and commentators alike were stunned by the way Athens has appeared to capitulate on the demands of Eurozone creditors although it is not yet known whether the 13 page new document will be accepted or not.

A verdict from Brussels could come today, it was reported, although leaders are due to meet, as widely flagged up, this Sunday.

Notably, the Alexis Tsipras proposal contains around €13bn in cuts and tax rises -  which is €4bn more than the plan the public rejected in last week’s referendum.

Equity investors seem buoyed. FTSE100 is up 1.09% in morning deals, at 6,649.

Airlines giant IAG is among the big gainers as it emerged that that the Ryanair board is to accept its offer for the budget carrier' 29.8% stake in Irish Aer Lingus, sealing the long-running £1bn takeover of the Irish airline.

In other news, Tunisia - the African country - comes under the spotlight after Britain has now decided to pull out UK tourists there in the wake of the atrocity two weeks ago.

Meanwhile, the tensions between telecoms titan BT (LON:BT.A) and Sky (LON:SKY) ratcheted up a notch as the former called on Ofcom to tackle Sky's dominance of the UK pay-TV market and asked to change the scope of the regulator's review.

The latest request from BT comes after Sky recently requested Ofcom to carry out a competition inquiry into BT’s position in the national telecoms network.

In oil news, FTSE250 services group Petrofac (LON:PFC) saw shares add almost 3% as it secured a big US$780mln contract from Kuwait Oil Company.

Petrofac noted that Kuwait is, and will continue to be, one of our core markets and is of strategic importance to Petrofac's ambitions in the Middle East.  We look forward to working with KOC to deliver this project safely and on schedule."

In small caps,  Mwana Africa (LON:MWA) was a big riser, heading up over 25% as it instigated a round of head office cost cutting following boardroom changes last month.

 

The Zimbabwe -focused nickel and gold miner has made twelve positions redundant, including a senior manager and corporate office staff. Advisers and consultants have also been cut back, it said.

London open

Investors looked to a brighter future for Greece as its PM Alexis Tsipras submitted a new austerity plan to ensure the monetary taps stay turned on.

FTSE 100 rose 57 points to 6,638, with other markets in Europe also registering strong gains as investors digested what seemed to be total capitulation by the Greek government to creditor demands.

Commentators were surprised.  “Tsipras submitted a proposal to creditors on Thursday that contains around €13bn in cuts and tax rises, €4bn more than the plan the public rejected in last week’s referendum,” said Connor Campbell of Spreadex.

Tsipras said he had received a mandate in the referendum to negotiate a better deal, not to take the country out of the eurozone.

If the proposals are accepted, Greece may get a €54bn three year loan.

China’s stock markets also rallied again, which helped the mood.

On the market itself, British Airways owner IAG (LON:IAG) has seemingly tied up the acquisition of Aer Lingus after Ryanair (LON:RYA) agreed to accept the offer.

Ryanair owns 29.8% of its rival having beeing thwartd in ts own attempts to buy it. Shares in IAG rose 3% to 529p, while Ryanair (LON:RYA) added 2% to 12.38p.

Top hotels are an expensive commodity, but if you are selling it’s not so bad.

Intercontinental Hotels (LON:IHG) climbed to the top of the FTSE 100 risers as it sold the Intercontinental Hong Kong to a consortium of investors for US$938mln. The buyers have also agreed to fund a significant refurbishment of the Hotel.

Only three companies were in the red and then barely. ARM (LON:ARM) lost 0.5%, with Weir and GlaxoSmithKline the only other fallers.  

Among the small caps, fund manager Neil Woodford continues to splash his investors’ money in the biotech sector.

The star fund manager is putting up almost half of ReNeuron’s (LON:RENE) mega £68mln fund raise.

His reputation is such the shares rose by 14% to 5.57p despite the company claiming it was the largest amount raised by a biotech of its type this year.

Sirius Minerals (LON:SXX) expects to complete a definitive feasibility study for the York Potash project by the fourth quarter. Project financing, for the mine’s first stage, is expected to follow in the first quarter of 2016. Shares fell 9% to 19.3p.

Pre-Open

The FTSE 100 is set to open at the ominous sounding level of 6,666, if spread betting quotes are to be believed.

If correct, that would represent an 84 point rise on last night's close, building on yesterday's 91 point gain.

Chinese stocks – those that can still be traded – had another stonking day in Shanghai, where the composite index was up 182 points, or 4.9%, at 3,891 near the close of trading.

The Hong Kong market has put in an excellent shift as well, propelling the Hang Seng index 521 points higher (+2.1%) to 24,914.

Regulators in China have introduced measures designed to put a floor under tumbling share prices, including investigations into suspected short selling – the sale of stocks an investor does not own.

Chinese companies are also being encouraged to explore the possibility of buying back their own shares.

Elsewhere in Asia, things were not so rosy, with Japan's Nikkei 225 off 107 points, or 0.5%, at 19,748, with less than half an hour of trading left before the close.

US markets finished off their best levels yesterday, with the Dow Jones up 33 at 17,549, the S&P 500 five points firmer at 2,051 and the Nasdaq Composite 13 points to the good at 4,922.

In Europe today, the focus is likely to be on Greece, where the government is said to be seeking a three-year bailout loan of close to €54bn.

Prime Minister Alexis Tsipras has drawn up a package of tax increases and spending cuts in the hope of persuading the country's paymasters to loosen the purse strong.

Corporate news flow is quiet, with recently listed investment firm Mercia Technologies (LON:MERC) set to catch the eye with its first set of results as a publicly listed company.

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