* FTSE 100 down 0.6 pct; FTSE 250 down 1.2 pct
* China's retaliatory tariffs sink markets
* Vodafone drops on report of dividend cut
* Centrica gains after Q1 trading update
* Metro Bank skids to all-time low again
(Adds news items, analyst comment, updates to closing prices)
By Shashwat Awasthi
May 13 (Reuters) - Britain's FTSE 100 slipped to a
seven-week low as China slapped retaliatory tariffs on U.S.
goods, further escalating their protracted trade dispute, and as
telecom giant Vodafone slipped after a report of a dividend cut.
The FTSE 100 .FTSE ended down 0.6% while the FTSE 250
.FTMC tumbled 1.2% on Monday, led by a slump in Metro Bank
MTRO.L .
"Make no mistake this is a serious escalation and we have a
trade war on our hands again. The breakdown last week has not
proved temporary and it seems China is prepared to go toe-to-toe
with the U.S. on this," markets.com analyst Neil Wilson said.
Beijing said it would impose higher tariffs on most U.S.
imports on a revised $60 billion target list, striking back at a
tariff hike by Washington and easing investor appetite for risky
assets.
The latest twist in the long-standing dispute hurt
Asia-exposed stocks once again. Financial heavyweights were
among the biggest drags on the main bourse, while an index of
miners .FTNMX1770 skidded to its lowest in almost
three-and-a-half months.
"Traders don't think things will get much better yet, but
this may be overly pessimistic," Wilson said.
Vodafone VOD.L tumbled 5.2% on its worst day in nearly
five years after The Times reported https://www.thetimes.co.uk/article/vodafone-ready-to-slash-dividend-to-pay-for-5g-g6d59xtxl
that the world's second-biggest mobile operator was set to
slash dividends to pay for auctions for mobile phone airwaves in
Germany and Italy.
Brexit worries also weighed on sentiment, amid a lack of
clarity over where cross-party talks were headed and growing
calls for Prime Minister Theresa May's departure.
UK-focused banks and industrial groups traded in the red on
both indexes.
ITV ITV.L slipped 6.3% to be the worst performer on the
FTSE 100. The broadcaster said The Jeremy Kyle Show, one of
Britain's best-known daytime television programmes, was taken
off-air indefinitely after a guest died a week after appearing
on the talk show. But a notable blue-chip gainer was British Gas owner
Centrica CNA.L , which added 3% after maintaining its annual
operating cash flow and net debt forecast and as defensive
stocks were in demand. Metro Bank MTRO.L , which has lost more than two-thirds of
its value this year, fell 11% to hit another all-time low on the
mid-cap index.
It said on Friday its plan to raise equity was well
advanced, while a Financial Times report on Sunday said it was
looking to sell loans that were hit by an accounting error.
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Vodafone & BT underperform FTSE 100 in 2019 https://tmsnrt.rs/2LFjk6H
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