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FTSE hit again over oil prices and BT boss news

By Roger Baird

Published 09/02/2016

BT Group finance director Tony Chanmugam is set to stand down from his role Dan Jones/ VisualMedia/PA Wire
BT Group finance director Tony Chanmugam is set to stand down from his role Dan Jones/ VisualMedia/PA Wire

London's top flight shares index dropped deeper into the red as it digested further falls in the oil price and the possible departure of BT's well-respected finance director.

The telecoms giant has stepped up the search for a new group finance director after revealing Tony Chanmugam - who first took up his post in 2008 - "may step down later this year".

The FTSE 100 Index fell 2.7% or 158.7 points to 5,689.3 yesterday, meaning the index has now fallen 9% since the start of the year.

Germany's DAX and the Cac 40 in France were both down more than 3%.

Global markets have suffered a torrid start to the year, due to a slowdown in emerging markets and oil price falls. Brent crude fell just under half a US dollar to $33.69 a barrel.

The pound was slightly down against the US dollar at 1.43, as traders still reacted to last week's US jobs data which will further strengthen the dollar if a second rates hike follows.

The US Federal Reserve raised rates for the first time in almost a decade in December.

Sterling was marginally down against the euro at just under 1.29.

In stocks, BT was down more than 4%, or 21.1p to 454.8p, after it confirmed it had begun the search to replace Mr Chanmugam.

It added: "BT confirms that a search process has commenced to find a successor, but that no formal decision has been taken on a replacement or around the potential timing of any change."

Belfast Telegraph

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