Swiss bank UBS has joined the ranks of companies that are warning this reporting season that trade wars and geopolitical tensions are eroding investors’ confidence and cutting into earnings. On that note, China said Tuesday that it will safeguard its interests but that it won’t close its doors to foreign investment despite trade frictions with the US. China particularly referred to the telecommunications, internet and car industries.
Anglo (LON:AAL) higher despite moderately negative update
In London Reckitt Benckiser and TUI dropped 5%. Reckitt Benckiser (LON:RB) sharply reduced second quarter profit forecasts. Tui (LON:TUIT) also slipped 5% as investors took profits of the table following the rally in the wake of Thomas Cook’s demise.
Anglo American’s production update deflected attention back to the resources sector as the company’s shares bounced up despite a moderately negative update. The miner has warned that problems in Chile have led to a reduced copper output while a ramp up of its iron ore operations in Brazil yielded good results. Overall production levels are mostly lower on the year, even in the iron ore operations.
Pound slides ahead of Johnson’s big Brexit push
Sterling slipped 0.19% against the dollar but traded only a fraction lower against the euro as the Prime Minister makes a final big to get Brexit approved before the October deadline. He will ask MPs to vote later today on the withdrawal agreement bill and then on his plan to have it approved by Parliament by Friday. MPs will start debating at 12.30 and the second vote is expected at 7pm.
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