Quiet day for the markets

European stocks closed lower Monday on light trading, dragged down in part by falls for consumer products heavyweight Reckitt Benckiser Group PLC and German automobile maker Daimler AG

KFC has closed more than half of its 900 outlets in the UK after delivery problems
KFC has closed more than half of its 900 outlets in the UK after delivery problems

European stocks closed lower Monday on light trading, dragged down in part by falls for consumer products heavyweight Reckitt Benckiser Group PLC and German automobile maker Daimler AG. The U.K.’s FTSE 100 was down 0.6% to end at 7,247.66 after last week’s strong performance, with losses for consumer-goods heavyweight Reckitt Benckiser Group PLC pressuring the London market’s benchmark.

Traders confronted a scarcity of catalysts in what was a relatively quiet day, with equity markets in the U.S. and China closed for holidays. Monday’s gainers included Deutsche Bank AG, which was up 2.1%.

No chicken at Kentucky Fried Chicken

KFC has closed more than half of its 900 outlets in the UK after delivery problems meant they ran out of chicken after recently switching its delivery contract to DHL, which blamed operational issues for the supply disruption. Workers are being encouraged to take holiday leave however would not be forced to do so, a KFC spokesman said, adding that it was unclear when the delivery problems would be rectified.

Until last Tuesday, KFC's chicken was delivered by South African-owned distribution group Bidvest, which describes itself as "the leading supplier of logistical and supply chain solutions to the UK hospitality and restaurant sector", however many of the food giant's outlets began running out of chicken products after the change in contract.

Job cuts for Deutsche Bank

Deutsche Bank AG has started cutting at least 250 jobs globally at its corporate and investment bank as Germany’s largest lender seeks to keep a lid on expenses amid a sustained slide in the securities unit, according to people with direct knowledge of the matter. The corporate finance unit for Europe, the Middle East and Africa, led by Alasdair Warren, felt some of the cuts as the investment bank is getting no closer to improving revenues and returns.

The cuts are still taking place and could widen to more than 500, one person said. In the past two weeks, the bank trimmed senior and mid-level investment banking positions in locations including London and the U.S., the people said, declining to be identified as the details are private. They include Marc Benton, who oversaw European energy investment banking, and Evans Haji-Touma, who focused on sovereign wealth and public pension funds, according to the people.

 

Disclaimer:

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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