Rio Tinto hit for £2bn as Trump starts trade war
It’s safe to say Donald trump won’t be welcome in the Rio Tinto boardroom any time soon.
the Us president’s shock decision to slap tariffs on steel and aluminium imports wiped more than £1.9bn off its value.
Analysts are saying trump’s decision could prompt a trade war with Europe and China.
As the biggest supplier of aluminium to the Us from its smelters in Canada, Rio was hit hard.
the FtsE 100 miner said: ‘We will continue to engage with Us officials to underscore the benefits of the integrated North American aluminium supply chain, including the jobs it supports on each side of the border.
‘Aluminium from Canada has long been a reliable and secure input for Us manufacturers, including the defence sector.’
Just when things looked like they couldn’t get any worse, Australia’s corporate watchdog said it planned to take Rio and two former executives to court for allegedly misleading investors.
the Australian securities and Investments Commission claims Rio deceived investors about the coal reserves in Mozambique in 2012. Its shares slid 3.8pc, or 142p, lower to 3638.5p. Rio rivals also suffered big losses.
BHP Billiton, Glencore and Anglo American all ended more than 3pc down for the day.
trump’s tariffs and theresa May’s admission that the EU and UK would have less access to each other’s markets post-Brexit made for a tough day for the FTSE 100. It fell a painful 1.5pc, or 105.74 points, to 7069.9.
A mixed-bag trading update from Gear4music struck a wrong chord with investors.
the Aim-listed musical instrument seller reported a 43pc increase in sales for the 12 months ending February 28.
However, it also warned earnings would be flat because of big investments in its infrastructure, systems and marketing. Investors heard a bum note, and shares bombed 3.1pc, or 20p, to 631p.
Plus500 shares plunged a whopping 8.5pc, or 99p, to 1070p a day after the founders pocketed £80m in a share sale, making it the Aim’s worst performer.
the five founders of the online trading platform said they sold the 7.3m shares for ‘personal reasons’. the company lets investors trade controversial and risky contracts for difference, which are subject of a potential clampdown by the City watchdog. Powerhouse Energy Group wowed investors by proving it can generate electricity from waste plastic and old tyres, boosting shares by 0.6pc, or 0.02p to 0.58p.
the process involves burning the waste until it turns into a gas, which is then transformed into hydrogen or electricity. While other firms may be able to do this, Powerhouse claims its method is better for the environment.
Elsewhere, the I-just- signed-a-new-deal klaxon barely stopped sounding. React Group signed a fresh 18- month deal, worth £206,000 initially, with an unnamed London hospital. It will provide ‘deep cleaning services’. shares leapt 5.6pc, or 0.02p, to 0.48p. And Alfa Financial Software signed an agreement with an unnamed global equipment manufacturer and finance firm to provide sales and contract management software.
At closing, its shares had ticked up 0.7pc, or 3p, to 457.5p.
Strix Group, which makes safety controls for kettles, announced a major new partnership between its water filter subsidiary and Boots the chemist.
Boots will stock five of Aqua Optima’s water filter products in 1,000 stores. strix shares nudged up 1.1pc, or 1.4p, to 133p.