ADVFN Morning London Market Report: Monday 29 June 2020

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London open: Stocks little changed amid worries about US Covid surge


London stocks were little changed in early trade on Monday amid growing concerns about rising coronavirus infections in the US.

At 0840 BST, the FTSE 100 was flat at 6,161.99.

In the US, Texas, Florida and Arizona have all reversed some of their reopening plans following a spike in new cases. Meanwhile, Leicester could be the first city in England to face a local lockdown after recording 658 new cases in the two weeks to 16 June, many of which are linked to outbreaks at food production plants.

Spreadex analyst Connor Campbell said: “Global coronavirus cases crossed the 10 million mark over the weekend, with around 1 million new cases per week according to the WHO and deaths now at half a million. In reality, these figures will be much higher, due to reporting discrepancies from nation to nation.

“The US accounts for around a quarter of both totals, the country regularly hitting record one-day case increases en route to 2.5 million known infections and over 125,000 deaths. States like Texas and Florida – the latter which from the beginning has had some of the laxest lockdown measures imaginable – have been especially badly hit, causing both to reverse their recently announced reopening plans.

“Yet, the market’s mood was more uneasy than sombre or panicked – and in some places, it actually erred on the perkier side of things. This isn’t necessarily surprising. Investors have been inconsistent in how they’ve approached the likelihood of a potential second wave, veering between outright distress, nervous calm and fingers-in-ears positivity, sort of on a whim.”

In equity marketsIAG flew higher after British Airways reportedly reached a deal to cut 350 pilots and put another 300 in a pool for re-hire when needed.

Other travel stocks, such as Premier Inn owner Whitbread, were also on the rise, along with budget airline easyJet, travel company TUI and cruise operator Carnival also higher.

Elsewhere, Energean surged after saying it had agreed to exclude Edison E&P’s Norwegian subsidiary from its takeover deal, and cut capital expenditure guidance as oil companies wrestle with a slump in prices amid the coronavirus crisis. The deal, originally worth $750m, will now cost Energean a gross $284m after ditching Edison’s Algerian assets in April.

Capex guidance was cut to $760m – $780m from $840 million. This decrease is despite the inclusion of $25m -$30m spending on UK North Sea assets and therefore reflected a further $85m – $110m cut to underlying guidance, Energean said.


Top 10 FTSE 100 Risers

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76.4% of retail CFD accounts lose money.


# Name Change Pct Change Cur Price
1 Tui Ag +3.59% +13.00 374.90
2 Easyjet Plc +2.79% +18.20 669.80
3 Berkeley Group Holdings (the) Plc +2.17% +89.00 4,194.00
4 3i Group Plc +2.06% +17.00 840.40
5 Kingfisher Plc +1.77% +3.80 218.50
6 Next Plc +1.65% +79.00 4,879.00
7 Taylor Wimpey Plc +1.51% +2.15 144.70
8 Standard Chartered Plc +1.47% +6.20 428.80
9 Hikma Pharmaceuticals Plc +1.46% +33.00 2,286.00
10 International Consolidated Airlines Group S.a. +1.44% +3.20 225.00


Top 10 FTSE 100 Fallers

Sponsored by
76.4% of retail CFD accounts lose money.


# Name Change Pct Change Cur Price
1 Carnival Plc -4.09% -39.60 929.00
2 Ocado Group Plc -2.90% -59.00 1,974.00
3 Centrica Plc -2.30% -0.89 37.81
4 Unilever Plc -2.17% -98.00 4,421.00
5 Evraz Plc -1.97% -5.70 284.30
6 Informa Plc -1.78% -8.30 458.80
7 Morrison (wm) Supermarkets Plc -1.49% -2.85 189.00
8 Land Securities Group Plc -1.37% -7.60 546.60
9 Flutter Entertainment Plc -1.36% -150.00 10,895.00
10 Sainsbury (j) Plc -1.30% -2.70 204.90


Monday newspaper round-up: Landsec, UK customs, retailers

The biggest job creation package in peacetime is needed to prevent the worst unemployment crisis in Britain for a generation, a leading thinktank has warned. Sounding the alarm as job losses mount, the Resolution Foundation called on the government to continue subsidising the wages of workers in the sectors of the economy hardest hit by the Covid-19 crisis until at least the end of next year. – Guardian

Landsec, one of Britain’s biggest property companies, is at risk of a shareholder rebellion after an influential adviser warned investors over the bumper pension package offered to its finance chief. The Guardian has learned that the Investment Association’s Institutional Voting Information Service (IVIS) has issued Landsec’s annual report with a “red top” alert – its strongest possible objection – for failing to publish a credible plan that would bring Martin Greenslade’s pension pay in line with the wider workforce by 2022. – Guardian

The head of the Government’s own expert customs panel has warned of looming chaos at ports after the “amateurish” handling of a new IT system. The Goods Vehicle Movement Service is intended to help goods flow across Britain’s borders and cut queues. Industry groups said they were only notified about the system in the past fortnight. Unlike France, the UK has still not tested its new customs system. – Telegraph

Retailers are being warned to prepare for a painful hangover from the online shopping binge after extending their returns policies during the lockdown. In an effort to revive sales, many retailers lengthened their returns deadlines from the usual 28 days, some up to 100 days. However, analysts and retail bosses have said they face an avalanche of unwanted goods after that period. – The Times

Large corporations that have received help from the government to see them through the pandemic should be forced to pay their suppliers within a month, a leading business campaign group has argued. At the end of last year, Britain’s small businesses were owed more than £23 billion in unpaid bills from customers but that figure is set to spike sharply higher due to the economic shutdown.- The Times


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