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BAB - Babcock International News Story

225p 9.7  4.5%

Last Trade - 23/09/20

Mid Cap
Market Cap £1.14bn
Enterprise Value £2.92bn
Revenue £4.45bn
Position in Universe 355th / 1807

Britain's FTSE hits one-month low as miners, Babcock slide

Mon 27th March, 2017 10:36am
(ADVISORY- Follow European and UK stock markets in real time on 
the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets) 
    * FTSE 100 down 0.8 pct 
    * Miners fall on weaker copper price 
    * Downgrades weigh on Lloyds, IAG 
    * Babcock down after contract termination 
    By Kit Rees 
    LONDON, March 27 (Reuters) - Britain's top share index hit a 
one-month low after the failure of U.S. President Donald Trump 
to push his healthcare reforms through Congress hit mining 
shares and Babcock  BAB.L  fell after exiting a contract. 
    The blue chip FTSE 100  .FTSE  index was down 0.8 percent at 
7,281.58 points by 0908 GMT, in line with the broader negative 
European market.  
    On Friday, Republican leaders pulled legislation to overhaul 
the U.S. healthcare system, a 2016 election campaign promise of 
Trump and his allies, which has put into question Trump's 
ability to deliver on his other promises, such as tax 
    The rally in global equity markets since Trump's election 
has been driven by a reflation trade, on the hope for increased 
infrastructure spending and tax cuts. 
    "The agenda is quite badly dented now - (Trump has) got a 
lot of consensus building to do," Ken Odeluga, market analyst at 
City Index, said. 
    "That's going to delay his ability to be really, really 
effective in terms of pushing through tax reform and 
pharmaceuticals reform and certainly will delay coming back for 
another bite of this healthcare reform," City Index's Odeluga 
    British miners  .FTNMX1770  were among the biggest fallers 
among the large caps, with Glencore  GLEN.L , BHP Billiton 
 BLT.L  and Antofagasta  ANTO.L  all dropping between 2 percent 
to 2.6 percent as the price of copper slipped for a second day. 
    Among the dozen or so risers, precious metals miners were 
among the top gainers, with Polymetal International  POLYP.L ,  
Randgold Resources  RRS.L  and Fresnillo  FRES.L  all up between 
1.8 percent to 2 percent, benefiting from a rise in gold prices 
as investors bought safe-haven assets.  GOL  
    Shares in International Consolidated Airlines  ICAG.L  were 
the biggest fallers, however, down more than 4 percent after 
Bank of America Merrill Lynch cut its rating on the stock to 
"underperform" from "buy". 
    Likewise Berenberg's downgrade on Lloyds  LLOY.L  to "sell" 
from "hold" sent the shares 2.2 percent lower, with analysts 
saying the bank is riskier than perceived and that risks 
from cyclical loan losses are highly skewed.*:nL3N1H42YV 
    Babcock International  BAB.L  also declined, down 3.1 
percent after the engineering outsourcer said it had reached a 
mutual agreement with the UK to terminate the Magnox nuclear 
decommissioning contract in 2019.*:nL3N1H42UE 
    Outside of the blue chips, shares in car dealer Inchcape 
 INCH.L  rose 4.5 percent after BNP Paribas upgraded its rating 
on the stock to "outperform" from "neutral".*:nL5N1H41AU 
    "The investment case has undergone a sharp U-turn over the 
past 6 months," analysts at BNP Paribas said in a note. 
    "The macro backdrop has improved and there would now look to 
be upside risk to the demand environment. Currency has turned 
from a headwind to tailwind. Management have iterated a credible 
self-help programme to support earnings progression. M&A has 
moved from optionality to reality."     
 (Reporting by Kit Rees; Editing by Janet Lawrence) 
 ((; +44 207 542 2784;)) 
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