FTSE 100 slides as Burberry chief steps down

Having opened flat, the FTSE 100 is down by 0.47% to 7,102.22 during the morning session on Monday as healthcare, consumers goods, utilities and miners proved to be the only sectors to show any positive signs of life.

“Global markets kicked off the week with a subdued tone, with minimal changes to the major indices across Europe and Asia,” says Russ Mould, investment director at AJ Bell.

While investors were not too pleased to hear that Marco Gobbetti, the chief executive of Burberry, had stepped down, causing the Burberry share price to fall by 6.44% at the time of writing.

“That shows how much he is credited with the success of the luxury goods business,” Mould said.

- Advertisement -

“Share prices can rise when a CEO resigns if the market didn’t like the incumbent as it suggests optimism towards the company finding someone better to do the job. Equally, share prices can fall when a CEO resigns if they are an integral part of the company’s success,” Mould added.

Brent crude oil prices held firm above $76 per barrel while gold nudged 0.1% ahead to $1,784 per ounce.

“Higher oil prices aren’t good for airlines as fuel is a major cost. That factor, together with fading hopes of a profitable summer for the industry, saw shares in the major airlines decline between 2% and 3%, including weakness in EasyJet and Jet2.”

FTSE 100 Top Movers

Informa (1.23%), AstraZeneca (1.02%) and British American Tobacco (1%) are leading the way on the FTSE 100 early on Monday.

At the back of the pack is Burberry (-6.44%), IAG (-4.08%) and Whitbread (-2.44%).

JD Sports

JD Sports on Monday confirmed an agreement has been reached to buy Deporvillage, the online sports retailer in Spain.

The deal for an 80% holding amounts to €140.4m (£120.3m).

The FTSE 100 company said that Iberian Sports Retail Group, the holding company in Spain it owns 50% of, has agreed to purchase 80% of the shares in Deporvillage.

Latest News

More Articles Like This

Tagdiv Cloud library - template content.