Yesterday's rally of good news and trading on the FTSE 100 has been hit by further losses of busines...
Yesterday's rally of good news and trading on the FTSE 100 has been hit by further losses of business at Reuters, which reported lower third quarter revenue and potential sales for next year.
The FTSE 100 index dropped 72.60 points or 1.8% to 4057.70 after Reuters reported it forecasts sales will fall again by 6 - 7% in the first half of 2003. This knocked Reuters' value by 46p or 22% to 162p.
Amey, the UK engineering group, took a major blow of 35.5p or 60.2% to 23.5p because its finance director Mchael Kayser quit after just one month in the job.
Aviva, the parent group of Norwich Union, also lost 35p or 7.2% to 453p after Merrill Lynch cut its rating from buy to neutral.
There was some good news as Granada managed to rise 1p or 1.3% to 76p alongside Carlton which climbed 1.5p or 1.2% to 131p, because a deal to buy Carlton has finally been agreed for a £976m stock swap. Carlton shareholders will take a 32% stake in the new company.
Over in the US, trading is just as bad, partly because there is a lot of company reporting this week and analysts are not too confident about the news they expect to hear.
Intel has forecast a fall in sales this quarter, knocking its own value by Intel slumped $2.85 or 17% to $13.67 while Coca-Cola said profit will be less than expected.
The S&P 500 lost 15.69 points or 1.8% to 865.58 while the Dow shed 147.59 points or 1.8% to 8108.09 and the Nasdaq Composite index slipped 41.83 points or 3.3% to 1240.61.
Coca-Cola dropped $2.98 to $49.50, because it is likely to meet analysts forecasts for this quarter.
Trading may not do much better tomorrow as IBM - which has already lost $2.72 to $65.76 today - will report its earnings after exchanges close later today.
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