FTSE NAMES TO BUY
We expect to see continued FTSE outperformance on back of FX benefits.
The names we are already Long and would be Buying here are GSK/ SHP/ VOD.
For GSK 10% GBP move is worth 9% in earnings upside.
Shire is translational USD earnings as 95% of earnings are outside the UK.
VODs has only 8% of EBITDA in FY16/17 derived from UK, Weaker sterling can have a material positive translation effect on earnings.
We would also highlight VOD’s and GSK’s defensive qualities with sizeable dividends.
All three now also become M&A targets for the US. How long before Liberty comes back for VOD’s?
BUY more of all three here.