Reports in the Independent on Sunday yesterday that Cable & Wireless will not be able to break even ...
Reports in the Independent on Sunday yesterday that Cable & Wireless will not be able to break even by 2004 after all have kept the FTSE 100 low this morning as there seems little to enthuse investors.
The FTSE 100 dropped 34.1 points or 0.7% to 5155.4 after Cable & Wireless itself announced its US, Japan and UK units may not reach original targets and subsequently shed 4.1% to 258.5p.
Makers of educational software and hardware, RM, also plunged 122.5p or 54% to 102.5p as it is thought profits have probably fallen and revenue is expected to have fallen by 15% as schools have cut orders.
There seems little to shout about this morning, although Hornby saw its share price rise by 11% to 287.5p as its pre-Christmas 2001 sales were higher than the previous year and its fiscal profits is predicted to exceed analysts' expectations.
In the US on Friday, it was the big-named firms which dragged everything south and again worried investors that the market is not as bullish as they previously thought.
Microsoft and Citigroup led the decline after it was revealed their earnings were not as strong in the fourth quarter, and Tyco and AIG kept concerns afloat that accounting practices could not be trusted.
The Dow Jones Industrial Average remained flat and lost just 0.1% to 9907.26 points while the Nasdaq Composite Index dropped 1.2% to 1911.24.
Matters are not being helped by the array of job cuts announced on Friday as General Motors Corp, Ford Motor Co, Amtrak and Dow Corning Corp all revealed plans to reduce their workloads.
As you might expect, Asian markets have not reacted too well to the doom and gloom in the US and Japan stocks, in particular, continued their bad run.
The Nikkei 225 stock average fell to a 4 ½ year low today and lost 1.6% to 9631.93 points after the government declared bad loans have risen by 13% in the fiscal first half of the year.
Mizuho Bank and the like were knocked hard as analysts changed their ratings on earnings potential, and large names such as NEC and Toshiba declared they too had to forecast wider than expected losses.
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019