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UPDATE 1-FTSE 100 drops as Just Eat rues Amazon backing rival, trade worries linger

Reuters United Kingdom
Updated: 17-05-2019 14:45 IST
UPDATE 1-FTSE 100 drops as Just Eat rues Amazon backing rival, trade worries linger

Image Credit: Flickr

London's main share index eased as Just Eat slumped after Amazon backed food delivery firm Deliveroo in new funding round, while investors paused after a week dominated by uncertainty over global trade and Brexit.

The FTSE 100 and the FTSE 250 were down 0.4% by 0807 GMT. Online takeaway service Just Eat skidded 8.2% to the bottom of the main index after rival Deliveroo said it had gained Amazon's backing in a new $575 million funding round.

The FTSE 100's decline on Friday came after three sessions of gains, as markets took stock of a plethora of news this week on Sino-U.S. trade relations, which were strained further after a volley of tariffs and Washington's sanctions on telecom giant Huawei. "What's even more puzzling about the recent rebound is that nothing much has changed when it comes to the trade story. If truth be told we're in a worse place than we were two weeks ago," CMC Markets analyst Michael Hewson said.

Hewson added that comments from China's state media indicated that the government had little interest in pursuing further talks under the current climate, meaning Washington needed to "show some semblance of wanting to talk". Worries over the impact of Britain's departure from the European Union have also resurfaced. Budget airline easyJet, which has seen significant headwinds, as a result, warned of lower revenue in the second half of the year.

But its shares rose 3.9%, after falling in the previous session on Thomas Cook's profit alert, as it stuck to its annual forecast. Shares of Thomas Cook slumped for the second straight session, dropping nearly 30%, a day after issuing its third profit warning in less than a year as Brexit jitters continue to weigh.

Software firm Sage Group shed 3% after its half-year revenue missed estimates. Metro Bank surged 21%, on course for its best day ever, after raising 375 million pounds of capital. The gain erased some of the near 70% slump this year which came after it disclosed an accounting error which led to a regulatory probe and a cash call.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

COUNTRY : United Kingdom