Last checked at 
(Alliance News) - The FTSE 100 was on course for a terrible first week of October as it opened Thursday's session lower, with investors increasingly jittery about the state of the global economy amid widening trade wars and weakening data.
In London, ex-dividends were weighing on the blue-chip index, while Ted Baker slumped after revealing a swing to loss for its half-year as it struggled with a challenging retail environment and the fallout from a hugging scandal.
The FTSE 100 index was down 16.84 points, or 0.2%, at 7,105.70 early Thursday, the index is now down more than 4% for the week. On Wednesday, the index had plummeted 3.2%.
The FTSE 250 was down 36.49 points, or 0.2%, at 19,440.42. The AIM All-Share was down 0.3% at 864.00.
The Cboe UK 100 index was down 0.3% at 12,050.15. The Cboe UK 250 was 0.3% lower at 17,389.00 and the Cboe UK Small Companies flat at 10,880.10.
In mainland Europe, the CAC 40 in Paris was up 0.2% in early trade. Markets in Germany are closed for the Day of Unity holiday.
In Asia on Thursday, the Japanese Nikkei 225 index closed down 2.0%. Markets in China remain closed this week, though in Hong Kong, which had re-opened on Wednesday after being closed on Tuesday, the Hang Seng was up 0.1% in late trade Thursday.
Wall Street ended lower overnight, with the Dow Industrials losing 1.9%
"The focus is turning to US data today and tomorrow as concern over a weakening US economy are mounting following a weak manufacturing ISM index and yesterday's downward revision in last month's ADP employment figures. In addition, news of growing trade tensions between the US and Europe is weighing on investor sentiment," said Thu Lan Nguyen at Commerzbank.
"While indeed another US trade war would weigh on the US economy and may even force the Fed to cut interest rates more aggressively, it would be an even bigger burden on Europe which is already seen at the brink of a recession," the analyst added.
Worries over US-EU relations were heightened on Wednesday by the World Trade Organization finding subsidies provided by Europe to French aerospace firm Airbus were illegal.
The ruling is the largest arbitration award in WTO history and a landmark moment the 15-year long Airbus-Boeing battle, which threatens to intensify already strained trade relations between the US and the EU.
Washington now has the go-ahead to slap tariffs on USD7.5 billion worth of EU goods. The EU immediately threatened to respond to any US move.
This trade news served to add to existing worries over the health of the global economy, with investors reeling from disappointing manufacturing data in the US and Europe earlier in the week.
In London, Imperial Brands was the best performer in the FTSE 100, up 1.4% after revealing plans for the departure of its chief executive.
Alison Cooper and the board have agreed that she will step down from her role once a suitable successor is found, Imperial said.
This news comes a week after the company cut its revenue guidance due to a challenging vaping and e-cigarette market in the US. Imperial predicted net revenue growth for its financial year, which ended on Monday, will be 2%, slashing its previous 2.5% growth forecast.
Imperial noted that the US next-generation product environment had "deteriorated" over the last quarter in the wake of increased regulation, with Massachusetts last week temporarily banning the sale of all forms of e-cigarettes - the first state to enact an outright ban.
"The timing of the [CEO] move is curious, given that the company as well as the sector is facing some serious headwinds as we move into the end of the year and look to 2020," said Michael Hewson, chief market analyst at CMC Markets.
"The tobacco industry is now facing the prospect of an existential crisis, with a slowdown on normal cigarette sales already cutting into profits, e-cigarettes were supposed to be the next key growth area. This strategy now appears to be under threat," Hewson observed.
At the bottom of the index were ex-dividend stocks, with DS Smith, WPP and British Land down 3.7%, 3.2% and 1.9%, respectively.
In another executive change, the boss of gold miner Centamin also intends to retire.
The nomination committee, chaired by Edward Haslam, is now initiating a search process to find a replacement for Andrew Pardey, who will remain in post while assisting the search process and facilitating an handover to his appointed successor, within his 12-month notice period.
The firm added that the lower end of its annual production guidance "remains achievable", having previously communicated that third quarter output was behind expectations due to reduced open pit mining rates on the higher-grade Stage 4 West wall of its Sukari mine in Egypt.
Centamin shares were down 2.9% in early trade.
Stagecoach was down 3.3% after reaffirming its annual guidance as it reported an in-line performance at its bus operations.
The public transport operator said it has been pleased by a strong performance in its London bus business, with a favourable service performance resulting in higher-than-anticipated "Quality Incentive Contract" income.
For the twenty weeks to September 14, like-for-like regional bus revenue growth was 1.0%, lower than anticipated.
"We continue to see regional variations in performance, with patronage trends typically strongest in urban areas and the southern half of the country," Stagecoach said.
Turning to its rail operations, Stagecoach said it is continuing to pursue claims against the UK secretary of state for transport regarding decisions to disqualify the firm from three rail franchise competitions. The three cases are due to be heard in the High Court in early 2020.
Ted Baker slumped 25% as the retailer reported a "challenging" first half, marred by "unprecedented and sustained" levels of promotional activity across the sector.
Revenue for the 28 weeks to August 10 was down 0.7% at GBP303.8 million, with the company swinging to a pretax loss of GBP23.0 million from a GBP24.5 million profit a year ago.
Exceptional costs of GBP17.4 million were largely incurred as a result of actions taken to "strengthen the brand" and include GBP11.8 million in respect of restructuring the Asian businesses and GBP3.5 million related to a footwear acquisition at the start of 2019.
"The financial results we delivered in the first half were behind our expectations. Trading in the second half has started slowly, not helped by the unseasonably warm weather in September, and this will have an impact on the full year outcome," Ted Baker warned.
The poor interims are a further blow to the company which has endured boardroom turbulence in recent months. Its founder Ray Kelvin resigned as chief executive earlier this year after allegations of misconduct were made against him.
Kelvin took a voluntary leave of absence from his role as chief executive of Ted Baker in December last year, after he was accused by the company's staff of forced "hugging" and inappropriate touching and comments.
CMC Markets jumped 12% after saying net trading revenue for the six months to the end of September was "strong", with the spread-betting firm pleased with its interim performance.
The online trading platform said revenue for its stockbroking business is expected to increase to around GBP14 million for the half, more than double the GBP5.5 million generated a year ago. The contracts-for-difference unit generated client income "only slightly down" on last year.
Following the strong performance in the half year, CMC said it is confident that net operating income will exceed GBP170 million for the full-year, with pretax profit expected to increase.
"I am pleased with our first-half performance. This time last year we had the uncertainty of regulatory change hanging over the sector and the uncertainty of how clients would react to the changes in minimum margin levels. A year on, we are seeing clients adapting to the new changes and still maintaining their interest in the products and the trading platforms we offer," said CMC Chief Executive Peter Cruddas
The economic events calendar on Thursday has services PMI readings from France, Germany, eurozone and the UK at 0850 BST, 0855 BST, 0900 BST and 0930 BST, respectively. There are also eurozone producer prices and retail sales figures at 1000 BST.
In political news, Boris Johnson is preparing for 10 days of "intensive discussions" as he seeks backing from EU leaders for his Brexit blueprint.
The UK prime minister has said he wants to get an agreement in place for the EU summit on October 17, paving the way for Britain to leave with a deal at the end of the month.
With the agenda for such meetings generally set several days in advance, he acknowledged there was "very little time" left. So far, however, European leaders have reacted coolly to the plan, set out in a letter to European Commission president Jean-Claude Juncker on Wednesday, to resolve the issue of the Northern Ireland backstop.
Johnson said his plan, which would see Northern Ireland remain tied to EU single market rules for trade in goods while leaving the customs union with the rest of the UK, represented a "fair and reasonable compromise".
However both Juncker and Irish premier Leo Varadkar expressed concern the return of customs controls – however light-touch – threatened the guarantee under the Good Friday agreement to maintain an open border with the Republic.
By Lucy Heming; lucyheming@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
