Well the blood is running down Threadneedle Street and for that matter Canary Wharf this morning. The start to the year has been metaphorical carnage as far as equities are concerned. China has set the agenda with two gargantuan falls this year, aided and abetted by oil falling to its lowest level in 12 years (-4% today) suggesting that investors are not happy campers! Initially the FTSE 100 fell 2%, but the negative feeling gathered momentum to take the main London index 3% – over 200 points – below the Plimsoll line. At 10.03am the FTSE is down 2.68% at 5910.
The damage to shares is basically across the spectrum, ironically apart from M&S – +0.27% at 493.9p! Why? Dreadful figures! The City loves blood running down the street as Marc Bolland falls on his sword in April, handing over to Steve Rowe. I hope the new CEO can see the wood from the trees when it comes to what looks like terminal illness of its general merchandising! After all he was the man in charge of that area! Again the M&S’ PR machine is top drawer. This old fool is not buying M&S’S outlook today! Persimmon is down 1% after decent numbers and Poundland has been larruped after a profits warning – down 10.5%. The main damage to the FTSE has emanated from mining -4.5%, oil -4% drugs -3% and banks -3%. The DAX is down 3.5% and the CAC is easier by 2.8%. The Street of Dreams’ DOW is set to open 378 points (futures) lower about 3% – so the sun is not even shining on the righteous!