Shares of Vodafone are trading lower

Shares of Vodafone are trading 3.6 percent lower during today’s trading after the terms of its sale deal with U.S. partner Verizon disappointed investors, weighing on the FTSE 100. The telecom firm had said the deal with Verizon would allow it to return 71 percent of the net proceeds of the deal, totalling $84 billion, to shareholders. However, the division of the return to shareholders between shares and cash is capped. The FTSE has recovered some 40 points since the lows around 10:00 this morning, trading 7.25 points down on the day.

In another sign that the UK's economic recovery is gathering pace, British construction activity grew at the fastest pace in nearly six years in August. The PMI index rose to 59.1 last month, its highest level since Sep 2007, staying far above the 50 threshold for growth for a fourth month. While fears persist that Britain is flirting with a new housing bubble fuelled by government stimulus, the PMI showed residential building output picked up at the fastest pace since June 2010.

After the S&P 500’s worst month since May 2012, U.S futures are trading higher today as investors await a report that may show manufacturing expanded for a third month in August. Shares in Microsoft however are trading 4.5 percent lower in pre-market trading after Microsoft bought Nokia's mobile phone arm in a €5.4bn deal. The deal gives Microsoft access to Nokia's smartphones and its design team as it struggles to compete against rivals after missing the mobile revolution.

Risers

Nokia
Microsoft has agreed a deal to buy Nokia’s mobile phone business for 5.4bn euros. Nokia will also license its patents and mapping services to Microsoft. Deutsche Bank upgrades Nokia to hold from sell after the announcement with a 2.2eu price target.

Associated British Foods
BNP Paribas upgrades Associated British Foods to outperform from underperform and raises its target price to 2400p from 1728p. It notes the current European sugar market regulation that stifles competition will end in September 2017

Centrica
Deutsche Bank upgrades Centrica to buy from hold and raises its price target to 430p from 340p. It expects Centrica's upstream energy business to benefit from a tighter European gas market over the coming two years, while the downstream British Gas business should return to growth against a backdrop of a recovering UK economy

Spirent Communications
The communications technology company have announced the CEO Bill Burns will step down from the board and leave the company with immediate effect. Eric Hutchinson will before CEO on an interim basis.

TalkTalk Telecom
JPMorgan Cazenove upgrades TalkTalk Telecom Group to overweight from neutral and raises its price target to 300p from 225p. It notes that over the last year, TalkTalk has beaten expectations on TV ads and churn reduction, while pricing repair continues.

Punch Taverns
The pub and bar operator have announced their fourth quarter trading for the 12 weeks ending Aug 17th was strong with like-for-like net income in the core estates up 0.45 and overall profits in line with management expectations.

Fallers

Genus
The animal genetics company reported a drop in full year profit but said it expects an improving rate of growth from the second half of its 2014 fiscal year onwards. Adjusted profit before tax was up 2% to £47.2m and earnings per share up 3% to 55p in the year to end-June, surpassing last year's record results.

Land Securities, Great Portland Estates
Deutsche bank cuts Land securities Group to sell from hold and cuts price target from 980p to 750p. they also downgrade a number of other UK property stocks effective the whole sector. JPMorgan also lowers Land securities price target from 1110 to 1040p. Following on from Deutsche Bank’s aggressive downgrades, they also downgrade Great Portland Estates rating to cut from hold.

Vodafone
Vodafone shares trade over 2 percent lower after they completed the 45% sale of Verizon Wireless to US telecoms group Verizon Communications in one of the biggest deals in corporate history.

Debenhams
BNP Paribas downgrades Debenhams to underperform from neutral and raises its price target to 90p from 85p. It says that "following the strong recent run in the shares, the relatively low operational gearing in a UK cyclical recovery and some downside risk to outer year forecasts, we believe Debenhams shares have run far enough and see better value elsewhere in the sector."