London open: Stocks seen lower as China announces retaliatory tariffs on US
London stocks were set to fall again on Tuesday following heavy losses a day earlier, after China announced retaliatory tariffs on a range of US imports.
The FTSE 100 was called to open around 14 points lower, having tumbled on Monday after US President Trump announced over the weekend that he would impose 25% tariffs on imports from Canada and Mexico, and an additional 10% tariff on China.
On Tuesday, just as the US tariffs on China took effect, China's Finance Ministry said it would impose tariffs of 15% for US coal and liquefied natural gas and 10% for crude oil, farm equipment and some autos. It also announced a probe into Google.
Capital Economics said: "The measures are fairly modest, at least relative to US moves, and have clearly been calibrated to try to send a message to the US (and domestic audiences) without inflicting too much damage. But there is a risk that retaliation backfires by encouraging Trump to escalate tariffs further."
In UK corporate news, beverages giant Diageo pulled its medium-term guidance ahead of incoming tariffs on Mexican and Canadian imports by the Trump administration, saying it cannot yet accurately predict how additional duties will affect its financial performance.
Diageo's tequila portfolio, which given geographic origin requirements must be made in Mexico, and also its Canadian whisky brands would be mainly affected by the protectionist measures.
Vodafone reported another revenue decline in its key German market, denting a solid overall third quarter performance across other regions.
The telecoms firm said German sales were down 6.4% in the period, compared with a 6.2% decline in the previous three months, primarily due to the impact of a new state media law. Despite the fall Vodafone reiterated full year guidance of €11bn in core earnings.
Great Portland Estates announced the appointment of William Eccleshare as a non-executive director and its chair designate effective 1 May, succeeding Richard Mully as chair after the company's July annual general meeting.
The FTSE 250 company said Eccleshare had extensive leadership experience in advertising, media, and corporate governance, and was selected after a comprehensive process led by senior independent director Nick Hampton.
Separately, it said Hampton himself would step down from the board on 3 April, with Karen Green succeeding him as senior independent director from 4 April.
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