LONDON MARKETS: FTSE 100 Ends Down As Pound Strengthens; Tesco Hit By Job Losses
January 28 2019 - 12:04PM
Dow Jones News
By Emily Horton
U.K.'s biggest retailer, Tesco, may cut 9,000 jobs
London stock markets closed in the red Monday, as the pound
climbed ahead of a big week of decisions on Brexit, weighing down
blue-chip stocks.
Banks, tobacco companies and oil producers led the decliners,
while Tesco PLC stood out among the losers after the company
announced a restructuring that could affect jobs
How did markets perform?
The FTSE 100 lost 0.9% to end at 6,747.10, after finishing the
previous week down 2.3%.
The British pound also fell, dropping to $1.3169 after ending at
$1.3200 on Friday. Over the past week, sterling has strengthened,
as the likelihood of a no-deal Brexit fell.
What drove the market?
British parliament is set for another big week of Brexit
decisions
(http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-gears-up-for-second-crunch-vote-2019-01-28),
with the next stages of the debate set to start Tuesday.
Investors are nervous ahead of scheduled trade talks between the
U.S. and China this week as well as the Federal Reverse meeting on
U.S. interest rates Wednesday.
After the partial government shutdown in the U.S. came to an end
on Sunday, President Donald Trump said he doubts Congress will be
able to produce a deal over the border-wall funding that he would
accept
(http://www.marketwatch.com/story/trump-doubts-he-will-accept-a-deal-on-border-wall-funding-from-congress-2019-01-27)
and promised he would build the wall anyway, possibly by using an
emergency declaration.
What shares were active?
Shares of Barclays PLC (BCS) dropped to close 2.5% lower, Royal
Bank of Scotland Group PLC shares (RBS.LN) fell by 2% and HSBC
(HSBA.LN) lost 1.1%.
Among the biggest losers, Imperial Brands PLC's stock (IMBBY)
fell 2.4%, while Tesco PLC (TSCO.LN) lost 1.7%, after the U.K.
grocer said up to 9,000 jobs could be at risk. Tesco plans to close
fresh-food counters at 90 of its stores as part of its turnaround
(http://www.marketwatch.com/story/tesco-says-up-to-9000-jobs-at-risk-in-cost-cuts-2019-01-28)
effort. Up to half of the 9,000 employees could be redeployed to
other customer-facing roles, the company said.
BP PLC (BP.LN) shed 2.4% as oil prices fell.
Ocado Group PLC (OCDO.LN) gained 2.1% and Marks & Spencer
Group PLC (MKS.LN) rose by 0.1% after it was reported that the
company was exploring a technology tie-up with the online
supermarket, according to the Financial Times
(https://www.ft.com/content/c5e66c2e-227e-11e9-b329-c7e6ceb5ffdf).
(https://www.telegraph.co.uk/business/2019/01/27/ms-talks-ocado-enter-online-food-fight/)
Among heavyweight miners, Rio Tinto PLC (RIO.LN) climbed
1.7%.
(END) Dow Jones Newswires
January 28, 2019 12:49 ET (17:49 GMT)
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