Sports Direct Share News (SPD)

LONDON (Alliance News) - The FTSE 100 returned to the red as Tuesday's session progressed, stocks in Europe slipping on trade fears and global growth downgrades from the International Monetary Fund.The FTSE 100 index closed down 26.32 points, or 0.4%, at 7,425.57, though having risen as high as 7,477.62 in late morning trade. The FTSE 250 ended down 83.45 points, or 0.4%, at 19,433.76, and the AIM All-Share closed up 1.54 points, or 0.2%, at 926.18.The Cboe UK 100 ended down 0.1% at 12,612.49, the Cboe UK 250 closed down 0.4% at 17,359.41, and the Cboe Small Companies ended flat at 11,246.48.In European equities on Tuesday, the CAC 40 in Paris ended down 0.4%, while the DAX 30 in Frankfurt shed 0.8%."Rising trade tensions and a global growth downgrade from the IMF has weighed on European stocks," commented David Madden at CMC Markets.US President Donald Trump has said he will put tariffs on USD11 billion dollars, or around GBP8.4 billion, worth of EU cheese, wine and other goods to retaliate for what Washington says are improper subsidies to Airbus.The US trade representative said the World Trade Organisation has repeatedly found that EU subsidies to the European aircraft maker have caused "adverse effects" to the US.A preliminary list of EU goods facing additional US duties includes everything from aircraft and aircraft parts to cheese, olives and wine.The list was released for public comment, subject to arbitration at the WTO, with results expected this summer. The EU responded to the US's latest call for new tariffs by noting that it was based on its own estimate, not anything it had been awarded by the WTO."The EU economy is cooling, and the prospect of USD11 billion worth of tariffs on European goods is likely to sour sentiment even further," commented CMC's Madden.Adding to the downbeat outlook for European growth prospects, the International Monetary Fund on Tuesday trimmed its forecasts as it warned on risks from trade tensions and Brexit. The eurozone's growth projection for this year was cut to 1.3% from 1.6% and the outlook for next year was reduced to 1.5% from 1.7%. The UK growth forecast for this year was slashed to 1.2% from 1.5% and the outlook for next year was lowered to 1.4% from 1.6%.The global economy is now expected to expand by 3.3% this year, 0.4% slower than was forecast in the last quarter of 2018.The euro stood at USD1.1270 at the European equities close Tuesday, firm against USD1.1260 at the same time on Monday.Meanwhile, EU member states were considering how much extra time to give Britain to negotiate a smooth departure from the EU, diplomats said on Tuesday, in a sign that the risk of a no-deal Brexit this week might have been averted.EU leaders are due to decide at a special summit on Wednesday whether to delay the date of Brexit from Friday until June 30, as requested by UK Prime Minister Theresa May. European Council President Donald Tusk has, meanwhile, proposed a flexible one-year extension.London needs the extra time to broker parliamentary approval on a Brexit divorce deal negotiated with Brussels. Britain's EU departure has already been postponed from March 29.The decision at this stage is not whether to grant an extension, but how long it should be, EU diplomats said on condition of anonymity, following ministerial talks in Luxembourg to prepare for Wednesday's summit.The length of delay granted "must be proportionate to the objective", EU Brexit negotiator Michel Barnier said following the talks. "It has to serve a purpose, this extension."The pound was quoted at USD1.3049 at the London equities close Tuesday, firm compared to USD1.3040 at the close on Monday.Stocks in New York were lower at the London equities close, with the DJIA down 0.6%, the S&P 500 index down 0.4%, and the Nasdaq Composite sliding 0.2%. In commodities, Brent oil was quoted at USD70.63 a barrel at the London equities close Tuesday, soft compared to USD70.90 late Monday.Gold was quoted at USD1,304.54 an ounce at the London equities close Tuesday, up against USD1,297.36 at the close on Monday.Ending lower in the FTSE 100 on Tuesday was water firm Severn Trent, shedding 1.3% after JPMorgan cut the stock to Neutral from Overweight. Meanwhile, towards the other end of the index Standard Chartered closed up 0.6% after agreeing to pay USD1.1 billion to settle legacy sanctions compliance and financial crime controls investigations.The emerging markets-focused lender will pay USD947 million and GBP102 million in penalties to regulatory authorities in the US and UK respectively. The US agencies were looking into Standard Chartered's "unsafe and unsound practices relating to inadequate sanctions controls and failure to disclose sanctions risks" stemming from the lender's practices in Iran. Standard Chartered's fine from the UK Financial Conduct Authority is for "poor anti-money laundering controls". The UK regulator said the fine is the second largest penalty for anti-money laundering ever imposed by the FCA. In the FTSE 250, transport operator Go-Ahead Group slipped 1.9% after HSBC cut the stock to Hold from Buy.Sports Direct International closed up 1.6% after confirming it will not be putting a firm offer in for collapsed department store Debenhams, and lashed out at the struggling retailer's management.Earlier on Tuesday, Debenhams said it appointed administrators for the group but operating companies will continue to trade as normal. The administrators have also completed the sale of the group to a newly-incorporated entity controlled by Debenhams lenders.Prior to Debenhams filing for administration, Sports Direct had priced a possible offer for Debenhams at 5 pence per share, valuing it at GBP61.4 million. However, it backed out of the bid following Debenhams' collapse. In a strongly worded statement regarding the collapse of the department store chain operator, Sports Direct - which holds just under a 30% stake in Debenhams - said the administration process was nothing short of a national scandal which could have been avoided if Debenhams had chosen to engage with Sports Direct "constructively rather than obstructively".Sports Direct said it will investigate the process behind the administration, which saw Debenhams shareholder's equity wiped out. Debenhams shares were suspended Tuesday morning and will be cancelled on Wednesday.In the UK corporate calendar on Wednesday there are annual results from supermarket Tesco and interim results from online fashion retailer ASOS and retirement housebuilder McCarthy & Stone. There are first quarter results from recruitment firm PageGroup, and third quarter results from home furnishings retailer Dunelm.In the economic calendar on Wednesday are Japanese machinery orders at 0050 BST followed by UK manufacturing production, the trade balance and February's gross domestic product reading at 0930 BST. At 1245 BST is the European Central Bank's latest interest rate decision, followed by a press conference with President Mario Draghi at 1330 BST.In the US, consumer price inflation is out at 1330 BST and minutes from the Federal Reserve's last meeting are released at 1900 BST.