A Week-Long Struggle For The FTSE

Friday, 17th November: Remember that post in July? The one titled “Carillions’ Worst Day Ever”… well I lied, because today is definitely worse. Having reached an all time low of 57.25p in July after a profit warning, suspended dividend, and waving goodbye to the Chief Executive at that time, the group were eventually dropped from the FTSE 250. Today, we have learnt that things have gotten even worse, as the group have admitted the likelihood of the financial covenants being breached. Shares dropped by a nerve wracking 59% to 17.0p at the open. By the end of the day they were down 48.2% at 21.5p.

On the opposite end of the spectrum, Sky were trading over 3.0% higher and remained at the top of the blue chip index for the entirety of the day. All because of the increasing interest shown by the likes of Comcast and Verizon in buying Twenty-First Century Fox Inc’s 39% stake in Sky.

The FTSE has suffered all week, and today hasn’t been much different. The index opened 13 points lower at 7373 after closing 0.19% lower yesterday. Part of the problem today has been the news surrounding the subpoena calling for information from the White House’s administration team to be sent over with regards to the ongoing investigation into Russia’s involvement in Trumps’ election.

An individual of particular interest in this situation remains to be the presidents’ son-in-law and senior advisor, Jared Kushner. Investigators (and the rest of the world) want clarity regarding Kushner’s knowledge on the attempts to jeopardise the Democratic Party votes by hacking into emails, and his involvement in any post-election efforts to lift US sanctions on Russia in exchange for financial investments and business deals.

The news encouraged sterling to grow 0.4% to $1.3241, which consequently added further pressure to the FTSE. All in all, it’s been a tough period for the index, and they have ended the week down 0.08% at 7380.68.

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