13th Aug 2018 07:46
LONDON (Alliance News) - Stocks in London are seen opening lower on Monday as trade tariffs and the plunging Turkish lira upset Asian markets. IG futures indicate the FTSE 100 index is to open 32.11 points lower at 7,634.90. The blue chip index closed down 1.0%, or 74.76 points, at 7,667.01 on Friday.The Japanese Nikkei 225 index closed down 2.0%. In China, the Shanghai Composite is down 0.7%, while the Hang Seng index in Hong Kong is down 1.5%.In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.8%, and the S&P 500 and Nasdaq Composite both ending 0.7% lower.In early UK corporate news, shipping firm Clarkson said its earnings were hurt by a challenging trading environment across the shipping and offshore capital markets first half of 2018. This included a quiet period in sale and purchase activity, reduced rates within the tanker market, and delays to financial transactions. The situation was worsened by a fall in the value of the dollar during the period.For the six months ended June 30, revenue was down 2.7% to GBP152.6 million from GBP156.8 million the year before. Pretax profit declined 18% to GBP18 million from GBP21.9 million. Clarkson raised its interim dividend to 24 pence from 23p the year before. "We should benefit in the second half of the year from these recent improvements and remain confident in the mid to long-term potential for the group. Our investment across the business continues apace, as we drive innovation and remain focused on furthering Clarksons' position at the forefront of the sector," said Chief Executive Andi Case. Online spreadbetting firm Plus500 said it saw record first-half revenue and profit, as it completed its move up to Main Market of the London Stock Exchange.For the half year ended June 30, revenue more than doubled to USD465.5 million from USD188.4 million a year before, and pretax profit nearly tripled to USD346.4 million from USD116.3 million. Plus500 also said its active customers more than doubled to 248,564 and the number of new customers was up 75%.The company lifted its interim dividend to USD1.38 from USD0.24 a year before. In late June, Plus500 completed its transition to London's Main Market and said the move will "provide a more appropriate platform for continued growth" and raise its profile and status further - helping to attract new customers.Investment manager Brewin Dolphin appointed L&G Investment Management's chief financial officer, Siobhan Boylan, as its new finance director. The company said Boylan will join the board of Brewin Dolphin in early 2019. Chemring Group confirmed that one employee died and another was hurt in accident at its site near Salisbury on Friday.The military equipment company said the worker was killed, and another "badly" injured, at its flare manufacturing building on its Chemring Countermeasures facility.The incident, Chemring continued, damaged some equipment, and production is now temporarily halted.Chemring has started an investigation into the accident, as well as the potential financial ramifications. It did say, however, that underlying operating profit for its financial year ending October is likely to be around GBP10 million to GBP20 million lower than previously expected as a result of the accident.The Turkish lira hit a fresh record low early Monday after closing down as much as 16% on Friday as US President Donald Trump doubled steel and aluminium tariffs on Turkey, raising concerns the country may plunge into a financial crisis.This also follows a news report Friday that the European Central Bank has raised concerns over the impact of a weak lira on European banks. The ECB is more concerned about the exposure of some banks in France, Italy and Spain to Turkey's problems, according to a report in the Financial Times."Contagion risk centres on Italian, Spanish and French banks exposed to Turkish foreign currency debt, namely BBVA, UniCredit and BNP Paribas. These banks are thought to have the greatest exposure to Turkish debt and their loans are unhedged. As a result, we are expecting financials to have another tough day of trading on Monday," said London Capital's Japser Lawler.Turkey said on Friday that it would retaliate against steps taken by the US on trade and blamed the US for fraying ties between the two countries. On Sunday, President Recep Tayyip Erdogan blamed the fall in currency on a plot to oust him, likening it to the 2016 coup attempt against him."What they could not achieve with provocations and a coup, they are trying now to achieve with money," Erdogan told a meeting of his ruling Justice and Development Party in the Black Sea province of Trabzon.Sterling was marginally lower against the dollar quoted at USD1.2759 early Monday, compared to USD1.2776 late Friday.In the economic calendar on Monday, Italy delivers consumer price index inflation data at 0900 BST.In early economic news, Ireland's construction growth accelerated in July amid strengthening demand, survey data from IHS Markit showed. The Ulster Bank construction Purchasing Managers' Index rose to 60.7 in July from 58.4 in June. Any reading above 50 indicates expansion in the sector.Related Shares:
Plus500ChemringClarkson