Cobham Share News (COB)

LONDON (Alliance News) - Retaliatory tariffs from China on the US over the weekend dented London stocks on Monday, with other European indices also lower, as fears of a trade war weighed. "The week has inevitably kicked off on the wrong foot as deteriorating trade relations between the US and just about every large economy in the world depresses appetite for risk," said Ken Odeluga, market analyst at City Index."China's rapid retaliation after the US pushed ahead with USD50 billion in tariffs linked to intellectual property and technology continues to rattle global markets," Odeluga added.The FTSE 100 index was down 0.4%, or 27.18 points, at 7,606.73 Monday midday. The mid-cap FTSE 250 index was down 0.3%, or 53.14 points, at 20,952.38. The AIM All-Share index was down 0.2% at 1,099.02.The Cboe UK 100 was down 0.6% at 12,890.59, the Cboe UK 250 was down 0.4% at 19,143.95, and the Cboe UK Small Companies was down 0.5% at 12,883.53.In mainland Europe, the CAC 40 in Paris was down 1.1% while the DAX 30 in Frankfurt was down 1.3% Monday midday.Over the weekend, China announced retaliatory USD50 billion tariffs on goods from the US.The tariffs - with a list including a 25% duty on 659 imported items - on USD34 billion worth of goods come into effect on July 6, the same day as US tariffs on China, with the additional USD16 billion to be imposed later.Beijing said the retaliatory tariffs were being imposed "to protect our legitimate rights and interests in accordance with the basic principles of international law."This came after the White House on Friday announced a 25% tariff on USD50 billion worth of Chinese goods over "unfair trade practices.""The question now is how much pain both sides will be willing to inflict on the other - and themselves in the process - before coming to an agreement that removes tariffs and eases investor concerns," said Oanda senior market analyst Craig Erlam.Stocks in New York are called to open in the red on Monday following China's tariff move, with the Dow Jones and Nasdaq both seen 0.6% lower, and the S&P called down 0.5%.In the US economic calendar on Monday, the NAHB housing market index is due at 1500 BST, while Federal Open Market Committee member Raphael Bostic speaks at 1800 BST. Later, in Europe, European Central Bank President Mario Draghi speaks at 1830 BST.In London at midday, Aviva was the second best performer in the FTSE 100 after The Sunday Times reported German insurance giant Allianz is on the hunt for a large scale acquisition.Aviva, up 1.5% at midday, has been identified as one of the potential takeover targets, according to the newspaper. At the bottom of the index was Ocado - in its first day of trading as a blue-chip stock following last month's index review - as it fell 3.8% after Merrill Lynch cut its rating on the online grocer to Underperform from Buy.Rolls-Royce Holdings was down 3.5% after Credit Suisse cut the jet engine maker to Neutral and Underperform.Last week, Rolls-Royce said it is to cut 4,600 jobs as part on a new business restructuring plan to save GBP400 million annually by end of 2020.In the FTSE 250, Cobham was 4.3% higher after Morgan Stanley raised the defence contractor to Overweight from Equal Weight.Indivior was up 2.0% as it received a temporary restraining order from the US New Jersey District Court for rival Dr Reddy's Laboratories to cease the launch activities of a generic alternative to Indivior's opioid-addiction drug. The restraining order will remain in place pending a hearing on a preliminary injunction motion filed by Indivior on Friday, due to unresolved patent litigation with Dr Reddy's. Last week, the US Food & Drug Administration approved a version of Suboxone Film produced by Dr Reddy's. Suboxone Film sales account for around 80% of Indivior's revenue.Virgin Money Holdings was down 2.3% at 346.90p after accepting a takeover offer from fellow challenger bank CYBG.The combination of the two FTSE-250 listed lenders will see Virgin Money shareholders receive 1.2125 new CYBG shares for each Virgin share, valuing each Virgin share at 371 pence. The offer values Virgin Money as a whole at GBP1.70 billion, and will give the combined entity a value of around GBP4.40 billion.The deal represents a 19% premium to the closing price of 312p per Virgin Money share on May 4, the last business day prior to the start of the CYBG offer.CYBG was down 1.2% at midday."There is some strategic logic in putting them together but widely different cultures and the combination of two IT platforms are two major risks which could cause a hiccup or two down the line," said Russ Mould, investment director at AJ Bell.Elsewhere on the Main Market, shares in Reach - formerly known as Trinity Mirror - fell 5.7% after saying its long-standing finance director, Vijay Vaghela, will stand down sometime over the next twelve months.Vaghela joined the company in 1994, and will leave in order to pursue "other career opportunities". Vaghela has a twelve-month notice period and will remain at the firm until a successor has been recruited, Reach said.