Debenhams Share News (DEB)

LONDON (Alliance News) - Stocks in London opened in the red while the pound continued to trade lower on Friday ahead of the latest release of UK GDP, which is expected to stage a slight recovery following a disappointing start to the year.The FTSE 100 index was 0.5% lower early Friday, or 34.49 points, at 7,707.28. The mid-cap FTSE 250 index was 0.2% lower, down 43.16 points at 20,763.05, while the AIM All-Share index was flat at 1,089.67.The Cboe UK 100 was down 0.5% at 13,061.85, the Cboe UK 250 was down 0.3% at 18,862.29, and the Cboe UK Small Companies was flat at 12,321.38.Second-quarter UK GDP, due at 0930 BST on Friday, is expected to grow 0.4% quarter-on-quarter, following a first-quarter reading of 0.2%. On an annual basis, the UK economy is expected to have grown 1.3%, accelerating slightly from 1.2% last quarter."Following the weak Q1 UK GDP print, the recovery in both the survey and 'hard' data for the second quarter suggests that the slowdown in the first quarter was temporary and likely weather related," said analysts at Lloyds Banking.Lloyds continued: "The details are expected to show the service sector shouldering the burden of growth, offsetting an expected contraction in the industrial sector in Q2. Meanwhile, the expenditure breakdown is likely to show a strong contribution to growth from consumer spending."Also due at 0930 BST is manufacturing and industrial production for July, along with the trade balance.Sterling was quoted at USD1.2780 early Friday ahead of the data, trading around its worst levels since August last year and down from USD1.2873 at the London equities close on Thursday.The pound has continued to tumble this week as fears of a 'no-deal' Brexit mount, following UK international trade secretary Liam Fox putting the chance of a 'no-deal' scenario at "60-40" and Bank of England Governor Mark Carney last week warning the chance of such a situation is "uncomfortably high".The euro was also lower on Friday, quoted at USD1.1465 against USD1.1573 late Thursday."Why's the USD strong? A combination of GBP weakness [due to Brexit concerns] but also EUR weakness derived from European Central Bank concerns about continental bank exposure to Turkish counterparts as the Turkish Lira continues to plunge due to biting US-led sanctions and growing economic concerns," commented Michael van Dulken, head of research at Accendo Markets.In mainland Europe, the CAC 40 in Paris and DAX 30 in Frankfurt were down 0.9% and 1.0% respectively early Friday.David Madden, market analyst at CMC Markets, noted that London-listed companies with an exposure to Russia - such as Evraz and Polymetal - could come under pressure following US sanctions.The US State Department said the US had determined Russia had used weapons banned under a chemical and biological weapons act, a law which mandates the imposition of sanctions. The law has been used twice before, on Syria and North Korea.The sanctions, which will likely come into effect on August 22, would affect a range of security and defence goods. Certain exceptions would be made for commercial aviation and space flight materials.Evraz was down 6.5% as the worst performing stock in the FTSE 100, while Polymetal was down 3.7%, at the bottom of the FTSE 250.Also lower in London's blue-chip index on Friday was engine maker Rolls-Royce, down 2.0% after JPMorgan cut its rating on the stock to Underweight from Neutral.In the FTSE 250 knocked by a broker rating downgrade was Hill & Smith Holdings, 3.5% lower after Berenberg reduced its recommendation to Hold from Buy.The infrastructure products maker on Wednesday reported a fall in interim profit and warned that it does not expect to recover the earnings shortfall in the second half.Meanwhile, House of Fraser has fallen into administration, endangering the future of 17,000 staff.The department store chain said discussions between interested investors and its main creditors did not conclude in a "solvent solution" and it has no choice but to appoint administrators.EY, which is expected to be appointed administrator on Friday, will continue discussions with interested parties in the hope of reaching a deal "shortly after their appointment".Would-be suitors include Sports Direct International Chief Executive Mike Ashley - the company holding an 11% stake in House of Fraser - and Philip Day, the billionaire owner of Edinburgh Woollen Mill.Peer Debenhams was up 2.4% early Friday.In Asia on Friday, the Japanese Nikkei 225 index closed down 1.3%. In China, the Shanghai Composite ended flat, while the Hang Seng index in Hong Kong is down 0.8% in late trade.Japan's gross domestic product expanded a seasonally adjusted 0.5% on quarter in the second quarter of 2018, exceeding expectations for a 0.3% rise following a 0.2% fall in the three months prior.On an annualised basis, the Cabinet Office said GDP was up 1.9%, again topping expectations for 1.4% growth following the 0.6% contraction in the previous three months.Also on Friday, the Bank of Japan said that producer prices in Japan were up 0.5% on month in July. That beat forecasts for a gain of 0.2%, which would have been unchanged from the previous month.To come in the economic calendar on Friday is US CPI at 1330 BST with the Baker Hughes oil rig count at 1800 BST.