Monday, 13th May: The FTSE 100 made a slow start to the week as it hovered in red territory at the start of the day, partially due to ongoing bitter trade talks between the US and China. As the day went on, the index gradually sunk deeper and by the afternoon was trading c.0.5% lower at 7166.
TUI and Vodafone were some of the top fallers on the index. Vodafone was down on some particularly bad news after it was reported over the weekend that their dividend was to be cut so that the network provider can fund 5G projects, although some argued that a dividend cut wouldn’t necessarily solve its problem of a lack of organic revenue growth.
All the negative stories surrounding the blue-chip index were more than enough to sabotage Centrica’s efforts to uplift it. The largest energy supplier to UK homes reported a 54% increase in gross revenue in the first 4 months of the year, although the rest of the trading update was fairly downbeat as the group warned the remainder of the interim period was due to be hit by a challenging environment including outages at nuclear power plants, and warmer than usual weather which resulted in consumers using less heating and therefore a fall in UK natural gas prices.
The FTSE failed to make any sort of comeback today and ended 0.55% lower at 7163.68.