FTSE 100 drop on cautious comments from Gove

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The latest remarks from Brussels and London on the current talks on a trade deal between the EU and the UK could not be adequately classified by traders.

As a result, at 6551.06, the FTSE 100 closed the day down 19.85 points, or 0.3 percent, struggling to sustain the momentum of Wednesday.

The FTSE100 dropped back a little and was unable to stay above the 6,600 point stage, said Michael Hewson, chief market analyst at CMC Markets UK. After Michael Gove dampened some excitement about the possibility of a Brexit deal by the weekend by saying that it was more probable we would not get one, it then slipped into negative territory.

“The slightly firmer pound could also act as a drag on margins, although it is also off its highs based on Gove’s comments.”

“The divergence between EU negotiator Michel Barnier’s comments, which were quite optimistic, and Michael Gove’s recent comments are a bit hard to reconcile with what markets are starting to price in.”The divergence between the pretty optimistic comments made by EU negotiator Michel Barnier and the recent comments made by Michael Gove is a bit difficult to reconcile with what markets are beginning to price in.

The pound managed to gain strength against the dollar, climbing to 1.11 by 0.72 percent to 1.361 by the close and 0.22 percent against the euro.

The DAX 30 of Germany closed up 0.75% and the CAC 40 of France rose 0.03%.

Upper Crust and Caffe Ritazza owner SSP warned in corporate news that revenues would drop 80% in the first quarter after the firm reported a loss of £ 425.8 million in the year to Sept. 30, compared to a pretax profit of £ 197.2 million a year earlier. Shares closed 9 pence at 317.2 pence.

Serco, the outsourcing giant, reaffirmed that income would grow by 35% to between £ 160 million and £ 165 million, partially due to significant increases from government testing and tracking contracts.

Management, however, reported that it would delay a dividend decision and pay workers £ 5 million in bonuses and reimburse £ 3 million in holiday entitlements. Shares closed 3 pence at 123 pence.

More than 15 long-haul routes it plans to fly next year, including Sydney, Bangkok, Kuala Lumpur, Seoul, Calgary, Abu Dhabi and the Seychelles, were canceled by British Airways. IAG’s parent company shares closed down 1.3 pence at 159.7 pence.

The advertising giant WPP said it expects sales to return to pre-pandemic levels by 2022, a year sooner than previously expected. It added that annual cost savings of £ 600 million could be achieved by 2025. Shares closed at 815 pence to 32.8 pence.

For the second time in two months, luxury retailer Watches of Switzerland increased its full-year revenue outlook, meaning full-year sales are now estimated to be up to 925 million pounds. Previous forecasts ranged from £ 880 million to £ 910 million. Shares at 555 pence closed up 33 pence.

For the last fiscal year, Bar Chain Revolution confirmed its financial results, announcing a fall in revenue to £ 110.1 million for the year to June, compared to £ 151.4 million a year ago. Profit before tax was £ 31.7 million as it was affected by £ 21 million in extraordinary costs. Shares closed 2p at 22.25p.

WPP, up 32.8p at 815p, were the main gainers on the FTSE 100; Pearson, up 25.2p at 685.4p; Aveva, up 121p at 3,301p; Polymetal, up 58.5p at 1,711p; and Entain, up 37p at 1,147p.

The biggest losers were Vodafone, 5.3 pence down at 125.48 pence, United Utilities, 26.8 pence down at 926 pence, Ocado, 62 pence down at 2,220 pence, Morrisons, 4.45 pence down at 178.7 pence, and Burberry, 43 pence down at 1,827.5 pence.

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