Markets in London opened the week with mild downward pressure as investors reacted to a fresh U.S. tariff announcement and the knock-on effect on global trade sentiment. Currency markets moved in parallel, with the pound trading above $1.35, while other major European equity benchmarks also slipped on trade worries.
Over the weekend, U.S. President Donald Trump unveiled a new global tariff using a different legal authority. The measure was initially set at 10% and was later raised to 15% after the U.S. Supreme Court struck down the majority of his earlier tariffs on the grounds that the emergency powers previously invoked did not authorize them. That regulatory shift over the weekend is being treated by market participants as a fresh source of uncertainty for international commerce and corporate planning.
As of 0832 GMT, the FTSE 100 was down 0.1% and the pound was trading at 1.3518 against the dollar. Elsewhere in Europe, Germany's DAX slipped 0.4% and France's CAC 40 fell 0.1% as investors assessed the broader implications of trade policy developments.
Company headlines in London
Corporate updates from listed companies in the UK provided a differentiated picture beneath the headline market moves.
MONY Group PLC (LON:MONY) reported a modest improvement in top-line and profitability metrics for 2025. Revenue rose 2% to A3446.3 million while adjusted EBITDA also increased 2% to A3145.1 million, a level the company described as a record. Profit after tax edged up to A380.7 million from A380.2 million in the prior year. On a per-share basis, adjusted basic earnings per share rose 5% to 17.9p and basic EPS increased 2% to 15.3p. The group experienced a 7% decline in operating cash flow, which fell to A3107.7 million, and net cash decreased to A34.1 million from A38.4 million in 2024. Operating costs declined 4%, supporting an adjusted EBITDA margin of approximately 33%.
Smiths News PLC (LON:SNWS) said it has received a warning notice from the UK pensions regulator in relation to the Tuffnells Parcels Express pension scheme. The distributor of newspapers and magazines said the regulator is considering whether the company will be required to establish financial support arrangements for that pension scheme. The company described the warning notice as the latest step in the regulator's ongoing assessment of the scheme's funding position.
Rolls-Royce Holdings PLC (LON:RR) is reported to be seeking British government funding support for the projected A33 billion development of a new aircraft engine as it pursues a return to the short-haul market. The company is said to be seeking an initial A3100 million to A3200 million to help finance development and testing of a demonstrator for the UltraFan 30 engine, a programme with an anticipated overall cost of about A33 billion. Chief Executive Tufan Erginbilgi E7 has reportedly discussed the matter in recent weeks with Business Secretary Peter Kyle, and the company aims to secure a funding commitment in the first half of the year. Separately, reports indicate that the group plans to announce a fresh share buyback of up to A31.5 billion when it reports annual results this week.
Johnson Matthey PLC (LON:JMAT) and Honeywell International, Inc. disclosed an adjustment to the timetable and pricing of their agreement for Johnson Matthey's Catalyst Technologies business. The long-stop date for satisfying closing conditions has been extended from February 21 to July 21, 2026. The companies said that if antitrust approval remains the only outstanding condition by that July date, the deadline may be further extended to August 21, 2026, subject to certain conditions. Both parties now expect to complete the transaction by the end of August 2026. Financial terms were amended to reflect Catalyst Technologies' performance during 2025/26, including deferred sustainable solutions licensing projects and reduced profitability from catalyst supply amid challenging market conditions. Johnson Matthey will sell the business to Honeywell for an enterprise value of A31,325 million on a cash and debt-free basis.
Market context and investor takeaways
The market's immediate reaction was modest: a small decline in the FTSE 100 and larger percentage moves in some European indices. Currency markets showed the pound firming above the 1.35 mark against the dollar, reflecting flows that accompanied the retreat in risk-sensitive assets. Within equities, company-level news delivered divergent signals - MONY posted record adjusted EBITDA and improved EPS metrics, while Smiths News faces pension-related regulatory scrutiny that could have balance-sheet implications. Rolls-Royce's request for state support and its prospective buyback both point to significant capital allocation decisions ahead, and the extended Johnson Matthey-Honeywell timetable and reduced price reflect operational challenges in the sold business during 2025/26.
Investors will be watching three interlocking threads: the policy trajectory of the newly announced U.S. tariff measure and any second-order trade effects; the corporate balance-sheet implications of pension and transaction developments at listed UK firms; and near-term capital allocation signals from large industrials such as Rolls-Royce as they reconcile large-scale R&D programmes with shareholder returns.
Note: This report focuses on the market moves and company announcements described above. It does not introduce any additional data beyond the items reported by the companies and the policy announcement referenced.