Shares in the luxury brand plunged 11% after it announced the replacement of its chief executive and suspended its dividend after warning that annual profits would fall short of expectations.

The company, best known for its trench coats, said Joshua Schulman, former head of US brand Michael Kors, would take over as chief executive.

Schulman replaces Jonathan Akeroyd, who is leaving Burberry “with immediate effect by mutual agreement with the board,” the company said.

The announcement came as Burberry issued a trading update for the three months to the end of June, warning that the market was “proving more challenging than expected”.

The fashion brand said it was suspending its dividend as it was on track to post an operating loss in the first half of its fiscal year.

Read more: LIVE: FTSE 100 and European markets fall as Burberry reports profit hit

The luxury retailer revealed a 21% drop in like-for-like store sales in its first-quarter trading update, leaving revenues down 22% to £458 million ($594.9 million).

Richard Hunter, head of markets at Interactive Investor, said: “If current trading levels persist, the group could make an operating loss in the first half of the year, adding to what has been a significantly difficult time for the company.

“The group’s appeal has been dampened by weakening consumer demand, particularly in countries such as China, with sales in the Asia-Pacific region down 23% in the first quarter. Even before the share price fell by as much as 12% at the opening as investors tried to digest the news, the shares had fallen 58% in the last year and today’s announcement will have a seismic impact on the group’s short-term fortunes.”

Bitcoin’s price has soared in a move that some analysts have linked to the assassination attempt on Donald Trump on Saturday.

The Republican is seen as the most pro-crypto candidate, having hosted industry executives at his Florida resort Mar-a-Lago. His campaign has also accepted cryptocurrency payments, a first for a major US political party.

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“I will ensure that the future of bitcoin is made in the United States and not taken overseas,” Trump said during an event in Washington DC last month. “I will support the right to self-custody.”

The former president has committed to speaking at the Bitcoin 2024 conference in Nashville, Tennessee on July 27.

Trump, who was injured in a shooting at a Pennsylvania rally on Saturday, saw his chances of winning November’s presidential election rise by about 10 points to 70% on the Polymarket platform, which allows users to bet cryptocurrencies on the outcome of almost anything.

Read more: Live Cryptocurrency Prices

Rania Gule, market analyst at XS.com, said: “I believe US political news is driving gains in cryptocurrencies as it is a ‘speculation-driven’ area.

“If re-elected, Trump may pursue less stringent regulatory policies toward cryptocurrencies, potentially improving regulatory conditions and encouraging more investment.

“Its policies regarding international relations and foreign trade also have a significant impact on the market, as tensions or stability in international relations can lead to fluctuations in cryptocurrency markets.”

Shares of Trump Media soared nearly 70% in premarket trading as investors increased bets on Donald Trump winning the US presidential race following the attempt on his life over the weekend.

Markets appear to be speculating that the assassination attempt makes it more likely that Trump will win the November presidential election, and that this would benefit TMTG, despite its financial difficulties so far.

Charu Chanana, market strategist at Saxo Capital Markets, said: “With markets pricing in a greater possibility of Trump 2.0, the US dollar is likely to see some tailwinds, while the Mexican peso and Chinese yuan could suffer. Trump negotiations could come back into focus.”

Read more: Stocks that are trending today

Markets expect a Trump presidency to mean looser fiscal policy and higher tariffs on foreign goods.

Mark McCormick, global head of FX and emerging markets strategy at Toronto Dominion Bank, said: “For us, the news reinforces that Trump is the favorite,” he said. “We remain bullish on the U.S. dollar for the second half and early 2025.”

The Trump Media & Technology Group describes its mission as ending Big Tech’s assault on free speech, opening up the internet and giving people back their voices.

Robert Walters (RWA.L)

Recruiter Robert Walters has warned he does not expect the jobs market to recover until next year after a slowdown in hiring across the world.

The recruitment consultancy said it cut its headcount by 5% during the second quarter, with headcount falling to 3,625, a 15% drop from the same period last year.

Net fee income fell 12% to £84.8m at constant currency during the three months to the end of June, while gross profit fell 14% to £166.1m.

Global recruiters have struggled to find momentum as clients delay hiring and candidates are reluctant to change jobs in the current uncertain economic climate, with elections in some countries weighing further on the market.

Read more: Stocks to watch this week: Anglo American, Burberry, TSMC and Netflix

“Our near-term planning now assumes that any material improvement in confidence levels will be gradual and unlikely to occur before 2025,” said CEO Toby Fowlston.

“While current market conditions suggest a wider range of potential full-year outcomes than has been seen historically, I have great confidence in our experienced leadership team, which has successfully navigated many challenging market cycles,” he added.

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