Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Liberty Global Finalizes Acquisition of Virgin Media


Today's financial recap and tomorrow's financial outlook.


There was no economic data released today and Treasuries remained strongly bid throughout the day. Equities attempted to open lower, but buyers showed up and equities finished the day unchanged. Crude oil futures opened the day down as much as 2%, but after mixed inventory data from the Department of Energy in the mid-morning, retraced all of its losses to finish slightly positive.

This morning, Liberty Global (NASDAQ:LBTYA) finalized its deal to acquire Virgin Media (NASDAQ:VMED) for $47.87 per share in cash and stock, or the equivalent of $16 billion. The move will push Liberty into the British cable TV market, and it is a very lucrative deal. Both Virgin Media and Liberty Global sank as the increased debt load from the acquisition will hurt the cash flow of the companies.

British bank Royal Bank of Scotland (NYSE:RBS) settled its claims with the US CFTC and British BBA over LIBOR manipulation today. The bank was fined $612 million by regulators and will be forced to claw back up to three-quarters of bonuses paid out to employees who were implicated. The fine is the second largest levied against a bank for LIBOR manipulation, with UBS (NYSE:UBS) being fined over $1.5 billion.

The US Postal Service will discontinue Saturday mail delivery service by August in an attempt to save money over the next few years, though package delivery service will continue. The USPS is expected to show a $16.7 billion loss this fiscal year.

After the close, Green Mountain Coffee Roasters (NASDAQ:GMCR) beat earnings, reporting EPS of $0.76 vs $0.65 estimates and revenues barely nudged higher at $1.34 billion vs $1.33 billion estimates. Forward guidance was lower than expected, which caused the stock to drop more than 9% in the post-market.

Tomorrow's Financial Outlook

Tomorrow we will see a return to some volatility after today's sluggishness. The ECB will release its monthly rate decision, the first one to draw any attention in quite a while. The ECB is likely to comment on the repayment of 3-year LTRO funds that were issued last year during the height of the crisis and its outlook on where the euro has gone. During the prior two meetings, much of the council was torn on whether or not a rate cut would be necessary. For tomorrow's decision, the unanimous consensus is that the central bank will leave its benchmark interest rate unchanged at 0.75%.

The Bank of England will also make its monthly monetary policy decision, with no change anticipated for the main rate.

In the US, the weekly jobless claims will be released with only a small improvement to 360,000 from last week 368,000 expected. The prior two weeks of claims have seen sharp volatility as seasonal adjustments caused fluctuations. Near the close, the Federal Reserve will release consumer credit data from December, with a modest expansion of $14 billion estimated.

In earnings, Starwood Hotels (HOT), Advance Auto Parts (AAP), Phillip Morris (PM), Cigna (CI), Sprint (S), Activision Blizzard (ATVI), OpenTable (OPEN), LinkedIn (LNKD), Coinstar (CSTR), Riverbed Technology (RVBD), and American Capital Agency (AGNC) will report.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos