By Dave Morris

London markets exhibited remarkable calm despite U.S.-China trade tensions and fraying Brexit negotiations, showing little change in Monday or Friday's sessions.

How did markets perform?

The U.K.'s FTSE 100 was flat at 7,206.6, after edging down 0.1% Friday.

The pound was up 0.2% to $1.3021. On Friday it edged up 0.1%.

What's moving the markets?

The big story Monday remains trade talks, which despite ending Friday saw plenty of sabers being rattled in the media over the weekend.

Chinese Vice Premier Liu He told Xinhua (http://www.xinhuanet.com/english/2019-05/11/c_138051337.htm) that cooperation is the right choice, and that casually accusing one side of "backtracking" during negotiations was irresponsible. The dig at U.S. President Donald Trump and his team, who have accused China of changing its stance midway through the negotiations, came as Trump economic adviser Larry Kudlow broke from the president in admitting that tariffs would hurt both sides. The talks are expected to resume, though no timetable has been set.

Brexit talks between the U.K.'s ruling Conservative Party and the opposition Labour Party were looking fragile as The Times reported a potential cabinet revolt (https://www.thetimes.co.uk/edition/news/pull-plug-on-brexit-talks-with-labour-theresa-may-urged-mtv5nzcfw). The paper said Tuesday's cabinet meeting would see ministers pushing for a series of so-called indicative votes in Parliament rather than continuing talks with Labour, which some view as politically toxic.

Which stocks are active?

Vodafone Group PLC (VOD.LN) shares slumped 3.6% on reports that it was planning to cut its dividend. According to the Sunday Times, (https://www.thetimes.co.uk/edition/business/vodafone-ready-to-slash-dividend-to-pay-for-5g-g6d59xtxl) the telecommunications company will announce at its first quarter earnings Tuesday that it needs the funds to pay for investments in 5G network space in Italy and Germany.

Centrica PLC (CNA.LN) shares were up 1.9% as investors rewarded the energy utility for not delivering results as bad as had been expected. The company formerly known as British Gas warned that headwinds ranging from the U.K. government's energy price cap to warmer than normal temperatures had dampened its first quarter, and that they were weighing on its full year outlook.

 

(END) Dow Jones Newswires

May 13, 2019 06:03 ET (10:03 GMT)

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