All the drivers of M&A activity are firmly in place. We see another good year for M&A activity. The type of M&A will continue as well with foreign buyers coming into the U.K. and private equity buyers (also) coming in. |
An oil price that is not too hot or not too cold is an ideal scenario for the FTSE 100 and that is exactly what we have got at the moment. |
Any companies with exposure to big ticket items are struggling -- it could be a sign that UK consumers are tightening their belts. We are steering well clear of that sector. |
Everyone's winding down for Christmas so volumes are coming off, but that's pretty normal for this time of year. |
Global interest rates are having an effect. ... We've seen a pickup in interest-rate expectations in the U.S., and I think that's leading to concerns about the growth outlook, which is hitting the more cyclical sectors. |
It is establishing a platform to move higher. |
It looks like confidence has slowly returned to the equity market. We have seen very strong growth indicators and more benign inflation indicators -- that is an ideal scenario. |
M&A in the UK is not just focussed on a couple of sectors, it is across the board -- that tells you valuations are on the low side. |
Mining, oil and gas stocks are critical for the UK -- it is a quarter of the market -- and obviously there is a bit of nervousness around those sectors. Have they run too far? |
We are starting to see confidence slowly returning as far as equities are concerned, and the market is re-rating. We think the risks are to the upside. It is difficult to see what could derail the market at the moment. |
We are still positive on the outlook - the market is taking a breather. All the fundamental drivers are in place for the market to move higher. |
We conclude that the FTSE 100 could make it to a new high of 7000 by the end of 2007. |
We do not think these strong gains have been irrational or speculative, they are based in fundamentals. |
We're negative on media but you can't deny that it was a good statement from WPP. It looks like the acquisition of Grey Global has gone pretty well and they're upping margin targets. |