Markets in Europe closed in the red on Monday on investors' worries over the political situation in the UK after reports emerged 40 Tory members of parliament are ready to sign a letter of no confidence in Prime Minister Theresa May. Meanwhile, the Confederation of British Industry urged May to speed up Brexit negotiations amid concerns a "no deal" scenario would harm businesses in the UK. This pushed the British Pound lower. Furthermore, should eight more lawmakers sign the letter, a vote of no confidence would be triggered.
The FTSE 100 was down 0.24%. Babcock International pulled the index down as it plunged 7.32%. The DAX declined 0.40%. The worst performer was ThyssenKrupp as the mining company's shares sank 2.66%.The CAC 40 dropped 0.73%. Carrefour led the losses as the retailer lost 2.54%.
On Wall Street, US stocks were seen lower as markets focused on the GOP tax reform plan, as well as corporate earnings. A vote on taxes is expected later in the week in the House of Representatives. Earlier, reports emerged the corporate tax cuts may be delayed until 2019.
General Electric Company announced that it will be cutting its dividend by 50% to $0.12 per share as of December amid restructuring efforts. According to Chief Executive Officer John Flannery, this is important to drive shareholder return by aligning dividend pay out to cash flow generation. This implementation makes General Electric simpler and stronger to drive growth and create more value to the shareholders. The company also announced that it is going to lay off thousands and cut the number of its board members in a bid to cut costs.
In its 125-year history, the company only cut dividends twice, during the Great Depression and in 2009 as a result of the latest financial crisis. However, the latest cut comes after it was revealed the company is looking to make some big changes to its business.
Ride-sharing application operator Lyft Inc. will be entering the Toronto market by the end of the year. The San Francisco–based company is the biggest competitor of Uber Technologies Inc. The company will start offering its services to the residents of the greater Toronto area in one month.
Fifty Thousand Toronto residents already have the application on their devices. After its recent expansion to cover 94% of US residents, the company reached a total of 500 million rides through its network. In October, Lyft raised $1 billion through funding.
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