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Investing.com -- British stocks declined slightly Monday as uncertainty over U.S. trade tariffs weighed on sentiment, with the pound hovering above $1.35 against the dollar and broader European markets trading in the red on trade concerns.
Over the weekend, U.S. President Donald Trump announced a new global tariff under a different legal authority, initially set at 10% and later raised to 15%, after the U.S. Supreme Court struck down most of his earlier tariffs, ruling that the emergency powers used did not authorize them.
The blue-chip index FTSE 100 fell 0.1% and the British GBP/USD rose 0.2% against the dollar to 1.3502.
DAX index in Germany dropped 0.6%, the CAC 40 in France fell 0.1%.
UK round up
Johnson Matthey PLC (LON:JMAT) said it would return less cash to shareholders after Honeywell International Inc (NASDAQ:HON) agreed to buy its Catalyst Technologies business at a reduced price of £1.33 billion, down from £1.8 billion agreed in May 2025, sending shares in the British speciality chemicals maker down 16.4%.
The revised price, announced in a regulatory filing to the London Stock Exchange, reduces the planned shareholder return to approximately £1 billion from £1.4 billion, comprising an £800 million special dividend and a £200 million on-market share buyback alongside a share consolidation.
Smiths News PLC (LON:SNWS) said it received a Warning Notice from The Pensions Regulator on Feb. 20, in connection with the Tuffnells Parcels Express Pension Scheme, a development the company said had been flagged as a possibility in its most recent annual accounts. Shares of the UK’s largest news wholesaler were down 4.2%.
The regulator is considering issuing a Financial Support Direction against Smiths News in relation to the Tuffnells Scheme, according to the regulatory filing.
JD Sports Fashion PLC (LON:JD) shares jumped over 3% after the company announced a new £200 million share buyback programme for fiscal year 2027. The sportswear retailer said the programme will commence immediately, with an initial tranche of up to £100 million expected to complete no later than July 31. A second tranche of up to £100 million will follow thereafter. The company stated the buyback aligns with its capital allocation priorities and commitment to delivering cash returns to shareholders.
Mony Group posted a 2% revenue rise to £446.3 million in 2025, while adjusted EBITDA increased 2% to £145.1 million, marking a record level for the company. Profit after tax edged up to £80.7 million from £80.2 million a year earlier. Shares in the company surged more than 5% in London trading after the release.
Adjusted basic earnings per share climbed 5% to 17.9p, while basic EPS increased 2% to 15.3p. Operating cash flow declined 7% to £107.7 million, and net cash narrowed to £4.1 million from £8.4 million in 2024. Operating costs fell 4%, supporting an adjusted EBITDA margin of about 33%.
Victoria PLC (LON:VCP) shares rebounded, closing the session just 0.4% lower after initially falling about 12% after the flooring manufacturer warned that fourth-quarter revenue would fall approximately 5% below the prior year’s £1.12 billion, citing weak consumer confidence and reduced foot traffic at retail customers during January. The company said trading in the first half of January was impacted by geopolitical events across its key markets in Western Europe, North America and the UK.
While recent weeks have shown improvements, the board now expects fourth-quarter revenue to fall below previous expectations. The company noted that market expectations prior to this announcement were for fiscal 2026 revenue of £1,064 million and post-IFRS16 EBITDA of £110.7 million.
Goldman Sachs downgraded Rio Tinto PLC (LON:RIO) to neutral from buy, cutting its 12-month price target by 6% to £74 per share from £79, after the mining company’s shares surged roughly 60% over the past six months to leave the stock trading at what the brokerage called full valuation. The brokerage set the target using an equal blend of 1x net asset value and 5.5x EV/EBITDA. NAV fell 7% to £92.6 per share from £99.5, with the stock currently trading at 0.77x NAV. At the current price of 7,122p, the target implies an upside of 3.9%.
Bank of England Monetary Policy Committee member Alan Taylor expressed concern about the pace of services inflation at a Deutsche Bank event on Monday, noting that the measure has not declined as quickly as anticipated in recent months. Taylor, considered among the more dovish members of the MPC, said services Consumer Price Index has failed to fall as far or as fast as hoped. He expects the measure to normalise as wage growth moderates.
Services inflation slowed to 4.4% in January from 4.5% previously, according to the latest data. The figure remains elevated and has been a key concern for the Bank of England throughout its rate-cutting cycle. Taylor said inflation will be close to the 2% target sustainably. He noted the labour market is weakening in line with more pessimistic forecasts.
Rolls-Royce Holdings PLC (LON:RR) is requesting British government funding support for the £3 billion development of a new aircraft engine as it seeks to re-enter the short-haul market, the Financial Times reported Monday, citing people familiar with the talks. The aerospace and defence group is seeking an initial £100 million to £200 million to help fund development and testing of a demonstrator for its UltraFan 30 engine, part of a programme expected to cost about £3 billion in total, the report said.
Chief Executive Tufan Erginbilgiç has discussed the matter in recent weeks with Business Secretary Peter Kyle, according to the newspaper. Rolls-Royce wants to secure a funding commitment in the first half of the year.
Separately, Rolls-Royce Holdings PLC plans to announce a fresh buyback worth up to £1.5 billion when it reports its annual earnings this week, Sky News reported Sunday, citing unspecified sources. The aircraft engine maker had last year upgraded its annual guidance, expecting a stronger profit and free cash flow on improving demand from commercial airplane makers.