Mid-afternoon there was a number of chunky FTSE 100 share price falls – Shire, -2.9%, Fresnillo, -2.75% –though none could match the -6.7% flop from Durex and Dettol maker Reckitt Benckiser following its “challenging” 2017. Investors were unimpressed with flaccid sales growth for the full year from Reckitt, not to say lower-than-expected profit margins (though pre-tax profits overall climbed +11%). Overall, Reckitt shares are down around -20% since mid-summer.
US markets were closed for Presidents’ Day so it was up to Europe to lay on the investor gloom single-handedly with the German Dax down -0.41% and the French CAC 40 -0.32% at 4pm. On the currency markets it was all a bit lacklustre also with the pound losing confidence somewhat, down -0.15% to 1.3990 while the euro also slipped against the dollar, down -0.07%. Overall the dollar spot moved +0.14% higher to 89.28.
Back in the UK there was dismal news from meat supplier Russell Hume, slipping into administration; more than 250 jobs are going. Meanwhile hundreds of KFC outlets were forced to prematurely close following delivery problems with new operator DHL, formerly handled by Bidvest. “We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience."
- UK FTSE 100 7,244.91 -0.68%
- DAX 12,393.97 -0.47%
- CAC 40 5,258.64 -0.43%
- Euro Stoxx 600 378.52 -0.55%
- Dow 25,219.38 +0.08%
- S&P 500 2,732.22 +0.04%
- Nasdaq 7,239.47 -0.23%
- Nikkei 225 22,149.21 +1.97%
- Gold 1,349.50 -0.49%
- Oil WTI 62.14 +0.73%
Arsenal and Emirates agree £200m shirt deal
A new deal for Arsenal and airline Emirates. Both have signed a fresh five-year shirt sponsorship extension agreement worth £200m. The deal is thought to be the biggest sponsorship deal the club has signed so far and carries it to 2024.
“Emirates are again demonstrating their great belief in our approach and ambition and their significantly increased investment will help us continue to compete for trophies,” said Arsenal chief exec Ivan Gazidis in a statement.
Emirates also have another – separate – deal with Arsenal which supplies them with naming rights for the north London club stadium.
Latvia financial crisis - no risk to banking system currently
A financial crisis for Latvia exploded earlier today. The Baltic state has detained its central bank boss, Ilmars Rimsevics, on bribery accusations. Rimsevics is a member of the European Central Bank's Governing Council (along with President Mario Draghi plus Bundesbank boss Jens Weidmann).
“The Corruption Prevention and Combating Bureau (KNAB) has applied the status of being detained to the Governor of Bank of Latvia [Ilmars Rimsevics],” Prime Minister Maris Kucinskis told Reuters.
Latvian prime minister Maris Kucinskis claims there is no threat or damage to the Latvian financial system currently. The ECB has not commented so far on the news. The FT reported that there is separate regulatory action against ABLV, "the country’s third largest lender, will intensify concerns about the Baltic state’s financial system".