China stocks fell to a two year low as Trump threatened a further $200 billion (£152 billion) of tariffs against China. The Shanghai Composite Index plunged almost four percent while the yuan fell to a five-month low against the dollar following threats of a trade war. Zhang Yidong, strategist at Industrial Securities wrote in a note on Tuesday: “It’s the darkest hour and the most agonizing moment in the first half of this year…there are disaster victims everywhere.” Last week, China responded to Trump’s plans to place a 25 percent tariff on $50 billion of Chinese goods by promising its own tariffs on the same amount of US goods. On Monday, Robert Lighthizer, the US Trade Representative was told by Trump to identify $200 billion worth of Chinese goods to impose tariffs, if Beijing went ahead with the proposed tariffs. Trump said: “China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology.” “Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.” “But the United States will no longer be taken advantage of on trade by China and other countries in the world,” he added. Fiona Cincotta, senior market analyst at City Index, said: “The list of who threatened what is getting long. With both sides seemingly determined to retaliate it is hard to see how this will end without a bloodshed for business, particularly US businesses.” “The Federal Reserve’s officials have already warned that Trump’s tariffs are scaring companies from making new investments.” “Ironically, though the two countries had made some progress during trade talks earlier this year when China agreed to reduce the trade imbalance with the US, the deal ended up null and void after Trump resumed his threats almost as soon as the Chinese delegation left Washington,” she added.  

Shares in shoe store chain Footasylum (LON:FOOT) fell over 45 percent on Tuesday, after the company’s CEO said it had been impacted by weak consumer sentiment. The group reported strong results over the period so far, with sales increasing to £194 million after opening ten new stores. In the 52 week period to the 24th February pre-tax profit rose 4 percent to £8.4 million, with revenue up 33 percent to £194.8 million. The group saw a real rise in online sales, up 41 percent and now accounting for 30 percent of total revenue. However, investors were spooked by a warning from the company’s chief executive Clare Nesbitt. “While our core target market of the 16 to 24-year-old consumer has proved to be comparatively resilient in a downturn, our trading since the beginning of the new financial year has undoubtedly been impacted by the widely documented weak consumer sentiment on the High Street.”

Over the period the company expanded its distribution space to 278,000 sq ft, as well as opening a second warehouse facility in Rochdale.

Shares in Footasylum are currently trading down 46.33 percent at 89.90 (0938GMT).

Profits at equipment rental firm Ashtead (LON:AHT) rose in the 12 months to April, after the company benefitted from US clean-up efforts after hurricanes in 2017. Underlying pre-tax profits rose by 21 percent in the year to hit £927.2 million, with rental revenues up by 21 percent to £3.42 billion. Underlying earnings (EBITDA) rose by 19 percent to £1.73 billion, with its strong performance driven by its Sunbelt US, A-Plant and Sunbelt Canada divisions. On a statutory basis, revenues rose 20 percent at £3.71 billion, with pre-tax profits nearly doubling to £968.8 million. “Looking forward, we anticipate a similar level of capital expenditure in 2018/19 consistent with our strategic plan. So, with all divisions performing well and a strong balance sheet to support our plans, the Board continues to look to the medium term with confidence,” saud Ashtead’s chief executive, Geoff Drabble. Ashtead proposed a total dividend for the year of 33 pence, bringing the dividend up 20 percent from 27.5p a year ago. At the end of last year the group announced a £1 billion share buy-back programme, after benefitting substantially from strong half-year sales driven by the devastation caused by the hurricanes. On Tuesday, Ashtead said it had spent £200 million on buybacks so far. Ashtead shares are currently trading 7.29 percent down, despite the strong performance, at 2,199.00 (1011GMT).

Debenhams (LON:DEB) became the latest department store to issue a profit warning on Tuesday, joining the legions of high street chains suffering from the competitive climate. Debenhams warned investors that it would likely miss full-year expectations, after weakness in key markets weighed on performance over the last couple of months. “We have reassessed our expectations for the balance of the year and now expect pre-tax profit for FY2018 to be in the range of £35 million -£40 million, with EBITDA in the range £160-£165 million,” the company said. This is well below the current profit before tax market consensus of £50.3 million, after group gross transaction value fell 1.5 percent over the 15 weeks to the 16th June. Like-for-like sales fell by 2.2 percent. “It is well-documented that these are exceptionally difficult times in UK retail, and our trading performance in this quarter reflects that,” said Sergio Bucher, CEO. “We don’t see these conditions changing in the near future and, because it is our priority to maintain a robust balance sheet, we are making very careful choices about how we deploy capital.” Debenhams shares are currently trading down 10.36 percent at 17.57 (0844GMT).

Shares in retirement housebuilder McCarthy & Stone (LON:MCS) tumbled nearly 15 percent at market open on Tuesday, after operating profit fell by nearly £100 million. The group reported an expected operating profit for the full year of between £65 million and £80 million, a big drop on last year’s £96 million. The forward order book also took a massive hit, dropping to £67 million from last year’s £706 million. “Whilst this is lower than management’s expectations given the higher number of outlets, it is nevertheless sufficient to deliver within the new guided range,” McCarthy & Stone said. “Incentives and discounts are also expected to remain approximately in line with recent prior year levels.” The builder reported it had seen a “noticeable decline” in reservation rates, as customer exercise more caution. The group also announced that Clive Fenton, who joined McCarthy & Stone as CEO four years ago, would be leaving the company. “Having reached the age of 60, it is right that I now stand aside at the end of our financial year to enable a new chief executive to be responsible for this journey. Until then, I will remain focussed on delivering the best possible result for the year end and assisting the board with the necessary transition arrangement”, Fenton said. Shares in McCarthy & Stone are currently trading down 14.79 percent at 111.20 (0935GMT).

Braveheart Investment Group (LON:BRH) said its net profit nearly doubled in the year to March, after a jump in the value of its investments. Profit after tax came in at £1.49 million for the full year, up from £0.78 million the year before. Earnings per share increased to 5.51 pence per share from 2.28 pence, despite its total revenue falling to £0.82 million. In total, the group reported an increase in income over the 12 month period, hitting £1.98 million on the back of “considerable operational progress” in its strategic investment. The group valued its portfolio at £2.22 million, up from £862,000 the year before. Looking forward, Braveheart Investment remained positive and said it may engage third-party investors should any further capital be required. Shares in Braveheart Investment Group are currently trading down 4.21 percent at 18.20 (1552GMT).