Announcements from Cable & Wireless and Corus today dragged the FTSE 100 down by close of play and c...
Announcements from Cable & Wireless and Corus today dragged the FTSE 100 down by close of play and could have fallen further if, for once, it had not been for Iraq.
Cable & Wireless posted a first-half loss and announce job cuts for 3,500 staff, knocking its own value 47.25p or 36% to 83p.Corus Group, the steel maker, then called off a takeover bid and blamed the expansion of third-world steel production for its spiralling losses. Its value fell 12.75p or 27.3% to 34p.
The FTSE 100 subsequently fell 55.60 points or 1.4% to 4029.40, having pulled back from a 2.4% low. News from Iraq's UN envoy revealed Saddam Hussein would accept the United Nations' resolution on weapons inspections, lifting belief that a war with Iraq might not happen.
This news - as well as suggestions of sustained economic growth from Alan Greenspan - actually played to the US market, lifting value in companies such as Wal-Mart Stores and Coca-Cola.
The Dow Jones has so far risen 70.68 or 0.9% to 8456.68 while the Standard & Poor's 500 is up 5.57 points or 0.6% to 888.52 and the Nasdaq has added 16.83 points or 1.3% to 1366.39.
To be fair, Wal-Mart rose 60 cents to $54.45 as a result of its positive company reporting. Officials revealed third-quarter profit rose 23%.
Coca-Cola also rose $1.14 to $45.45 and its rival PepsiCo climbed $1.50 to $43.95, as confidence in the economy finally saw an upturn.
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