LONDON MARKETS: London Markets Shrug Off Trade, Brexit Tensions
May 13 2019 - 06:18AM
Dow Jones News
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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