Direct Line Share News (DLG)

LONDON (Alliance News) - London stocks continued to be constrained by fears of a trade war between the US and China, with the FTSE 100 on Wednesday reaching its lowest level in over a month.Broadcaster ITV, tobacco company Imperial Brands and Direct Line Insurance were among the stocks weighing on the index of London large-cap stocks.The FTSE 100 was down 19.52 points, or 0.3%, at 7,240.95 Wednesday midday. London's blue-chip index hit a low of 7,222.88 in morning trade, a level not seen since late March.The FTSE 250 index was down 18.00 points, or 0.1%, at 19,447.69, while the AIM All-Share was down 0.4% at 962.42.The Cboe UK 100 index was down 0.2% at 12,278.17. The Cboe UK 250 was down 0.1% at 17,474.88. The Cboe UK Small Companies was down 0.2% at 11,760.61.In mainland Europe, the CAC 40 in Paris was down 0.3% while the DAX 30 in Frankfurt was off 0.2%. "We're in risk aversion mode in the markets as investors prepare for the prospect of tariffs on Friday rather than a trade deal between the world's two largest economies," said Craig Erlam at Oanda."The breakdown in talks has really caught the markets off-guard," he continued. "It seemed a deal was just widely accepted and basically priced in. Now we're left wondering whether it will happen at all and what impact more tariffs will have on the global economy and markets."The next few days "could be massive", Erlam added.China said Vice Premier Liu He will visit Washington for two days of negotiations starting Thursday, despite an unexpected escalation in the countries' trade war.Liu's trip had initially been scheduled to start on Wednesday, but was put under question after US President Donald Trump threatened to raise tariffs on USD200 billion worth of Chinese goods.Stocks in the US are pointed to a downbeat session on Wednesday, with the Dow Jones Industrial Average called down 0.3%, the S&P 500 also seen 0.3% lower, and the Nasdaq set to slip 0.4%. US Secretary of State Mike Pompeo made an unannounced visit to Baghdad on Tuesday, where he held separate meetings with the Iraqi president and prime minister to apparently press them about threats to US interests from Iran. "Iran is escalating their activity," he had said, as the US increases pressure on the Islamic republic, which it describes as the major cause of regional instability. The US said Sunday it deployed an aircraft carrier to the Middle East to send a "clear and unmistakable message" to Iran that any attack on US interests or on those of our allies will be met with "unrelenting force."The events are playing out one year after the US unilaterally withdrew from the 2015 Iran nuclear deal and has been in the process of imposing crushing sanctions on Iran, including on its oil exports.Iranian President Hassan Rowhani has informed the other parties to the deal that his country will partially do the same. Rowhani communicated his decision to China, Germany, France, Britain and Russia in a letter, the ISNA news agency reported on Wednesday.In the UK, pressure is mounting on Prime Minister Theresa May to set a date for her departure from Downing Street. A Tory grassroots revolt has been threatened next month if she does not set out specifics on when she will pack her bags, and has been heightened as an official announcement about her failure to avoid European elections was quickly followed by continuing deadlock over Brexit talks with Labour.Wednesday sees a Tory showdown as Graham Brady, chairman of the 1922 committee of backbench members of Parliament, reveals the outcome of his secret departure talks with May to his colleagues.Tory MPs are powerless to remove May following a failed bid to boot her out as leader in December last year, led by Tory MP Jacob Rees-Mogg - but the grass roots of the party are calling for a rule change.The pound was quoted at USD1.3005 at midday, down from USD1.3050 late Tuesday.Keeping the FTSE 100 in the red at midday was ITV, down 6.0% as the broadcaster and television show producer reported lower first-quarter revenue amid a decline in advertising.For the three months to the end of March, ITV reported total external revenue of GBP743 million, down 4% from GBP772 million the year before. Total advertising revenue, which includes net advertising revenue, online videos-on-demand and sponsorship, was down 7% at GBP417 million from GBP448 million the prior year. Looking ahead, ITV's first half of 2019 is expected to be hampered by lower advertising demand due to continued economic and political uncertainty, as well as the absence of the football World Cup."It is little wonder that ITV is reaching for new initiatives like its Britbox streaming joint venture with the BBC, on track to launch in the second half. Though this itself will constrain earnings in the short-term given the heavy upfront investment involved," commented Russ Mould at AJ Bell. Imperial Brands dipped 5.0% despite reporting a jump in interim profit, as it registered a decline in tobacco volumes. Revenue for the half was GBP14.39 billion, rising 2.3% from GBP14.06 billion a year before, with Tobacco & Next Generation Product revenue up 1.5% at GBP10.63 billion from GBP10.47 billion and Distribution revenue up 6.1% at GBP4.19 billion from GBP3.95 billion.At constant currency, total net revenue was up 2.5%, benefiting from a 2.9% increase from Next Generation Products but suffering a 0.4% decline from tobacco.The company posted a pretax profit of GBP1.02 billion for the six months to March 31, a sharp 70% rise from GBP600 million a year before.Tobacco volumes were down 6.9% overall for the half year, falling to 115.2 billion stick equivalents from 123.6 billion a year before. The decline was seen across all three of its regions - Europe, the Americas, and Africa, Asia & Australasia - with the last having the sharpest decline.Direct Line Insurance shares were down 2.0% amid a fall in first-quarter premiums in a "tough trading environment". The FTSE 100-listed general insurer reported a 2.1% decrease in total written premiums to GBP753.9 million from GBP769.9 million. The company's own brands total written premiums fell 1.9% to GBP520.6 million.Low average premiums in the Motor market were attributed to reduced risk, which arose from the company's pricing initiatives. Claims inflation in the Motor division was at the upper end of the company's long-term expectations of between 3% to 5%, attributed to high third-party damage costs.FTSE 250-listed builders' merchant Travis Perkins was up 1.9% after reporting a good start to the year. The owner of home improvement retailer Wickes said that for the three months to the end of March, total sales grew by 5.4% on a year before, while like-for-like sales were up by 7.3%.The Retail division, which includes Wickes, saw total sales rise by 9.4% , with like-for-like sales up by 10%, due to strong performance from core DIY and Kitchens & Bathroom showroom ranges.Meanwhile, JD Wetherspoon slipped 4.4% after the pub operator reported a slowdown in like-for-like sales. Like-for-like sales in the 13 weeks to April 28 rose 7.6% from the prior year, while total sales were up 8.4%. This marked a slowing in recent weeks from the 9.6% like-for-like growth reported previously for the six weeks to March 10.