FTSE-100 stumbles as Whitbread slides on £1 billion emergency fundraiser

The FTSE-100 Index fell just over half a percent as trading opened today as Whitbread shocked investors with a huge rights issue to raise £1 billion.

The blue chip index fell 39.21 to 6027.95 with Whitbread, owner of the Premier Inn budget hotel chain, leading the charge downwards. It crashed 15% on news of its rights issue which will leave shareholders deeply diluted unless they buy the rights.

Leisure stocks paused for breath, having had some decent rallies lately, with Intercontinental Hotels Group falling 3%. Arguably, they could be among the big losers from Premier Inn's expansion plans as the budget chain looks to capitalise on travellers realising there's little point staying in a swank hotel when social distancing means the bars and restaurants are atmosphere-free zones.

Big job cut plans at Rolls-Royce, Airbus and other manufacturers have highlighted the weakened state of Britain's factories as orders dry up in major sectors such as automotive and civil aerospace.

Grim economic data on manufacturing is expected to add to the gloom today. Meggitt, the engineer, was down 3% in early trading.

Later today new weekly jobless numbers in the US are set to show 2.4 million more were made unemployed, slightly less bad than the 2.98 million last week.

Banks' shares tooka dim view of comments from Andrew Bailey, Bank of England governor, that his team are mulling potential negative interest rates. This was the first time Bank officials have admitted considering the move, which it has previously dismissed. While in theory it should boost spending and lending, in reality, it often stops banks loaning out money because it makes it impossible for them to make a profit. Barclays, HSBC and Lloyds all fell 1% - 2%.

It wasn't all grim though. EasyJet jumped 5% on news it was going to resume flights on 15 June in the UK and France, leading British Airways owner IAG up 3% in its slipstream.

Engineer Lamprell surged after winning a gasfield engineering project in Sharjah, UAE, hooking up and installing a well.