British stocks plunged on Monday as concerns over a Russian invasion of Ukraine hit the FTSE 100 index, with airlines and banks among the biggest fallers as investors rushed towards safer investments.
The UK's blue-chip index fell as much as 2 per cent in early morning trade, erasing nearly all its year-to-date gains and taking the index to its lowest point in two weeks, with the biggest indexes in Germany and France falling 3.5 per cent.
“The prospect of war is rarely good for stock markets, and so the new trading week has begun on a bad note across Europe and Asia as investors fear the alarm clock is about to sound on a physical battle between Russia and Ukraine,” said Danni Hewson, financial analyst at AJ Bell.
“Should Russia go to war with Ukraine, there is no telling how long the battle will last, and the damage wrought on the stock market.”
More than £54 billion ($73bn) was wiped from the value of London's top 350 companies on the FTSE 100 and FTSE 250 just a couple of hours after markets opened on Monday morning.
Fears of a possible conflict battered most stock markets last week, with the alert level raised at the weekend after the US warned that that Russia could invade Ukraine at any time, with Moscow reportedly amassing more than 100,000 troops near the border.
Airlines were among the FTSE 100's biggest fallers, with British Airways owner IAG down 6.28 per cent at 11.41am London time, as the prospect of war threatens to hamper the aviation sector’s already fragile recovery.
Wizz Air, which operates the second highest number of flights between Ukraine and Europe after Ireland's Ryanair, dropped 8 per cent on the FTSE 250.
Banking stocks were also down, with Barclays down 5 per cent as investors steered away from riskier assets in the face of uncertainty.
The biggest loser on the FTSE 100 by far, however, was steel producer Evraz, which lost more than a third of its value — an unusually big drop for such a large firm.
The global company has a large number of assets in Russia, with the drop enough to wipe around £650 million off the value of the shares held by Chelsea owner Roman Abramovich — Evraz's biggest shareholder.
British energy stocks fell the least as oil prices climbed on the prospect of supply disruptions caused by any escalation over Ukraine. However, shares in oil major BP were down more than 3 per cent because the business has a nearly 20 per cent stake in Russian energy giant Rosneft.
“With worries that inflation is already running far too hot, the possibility Russia troops could move across the border has led to another surge in the oil price to above $95 a barrel, edging up towards $96, a level Brent crude has not been at since 2014,” said Susannah Streeter, an analyst at investment platform Hargreaves Lansdown.
“Energy markets are clearly on edge and if supplies are threatened there is a risk oil will shoot up even higher, adding to price pressures for companies.”
Meanwhile, sterling fell against a stronger dollar in early trading on Monday as the possibility of war in Ukraine ramped up, as "riskier" currencies such as the Australian dollar struggled. The US dollar, which is seen as a "safe haven", strengthened.
The pound was down 0.5 per cent against the dollar at $1.3498 at 9.02am London time, a one-week low, before paring back later in the morning.
“Should markets move to price in more geopolitical risk, cable may well break below the 1.3500-1.3600 range that has held since the start of February,” said ING strategists.
“At the same time, we think that this week’s data flow in the UK should continue to support Bank of England tightening expectations.”
UK jobs and wages data is due on Tuesday, with inflation data for January set for release on Wednesday and retail sales data expected on Friday.
“While there might be upside risks to the jobs and wages data, given the BoE is better positioned for these risks we expect a less volatile reaction to the UK data this week with [US Federal Reserve] speculation and events in Ukraine perhaps more important influences,” Derek Halpenny, head of research at MUFG, wrote in a research note.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
WISH
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The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
Company%20profile
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UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Company%20profile
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Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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