Maitland/AMO Morning Monitor – Friday 14 August 2020

14th August 2020

In the news

  • Boris Johnson has added France to the UK quarantine list. The new measures will be imposed from Saturday.
  • With the help of the US, Israel and the UAE have struck a historic peace deal to normalize diplomatic relations.
  • Boris Johnson has announced that plans for wedding receptions, sporting events and indoor performances will resume. As part of easing lock down rules, fines for those failing to wear face coverings in public places has increased to a maximum of £3,2000.
  • Labour leader Keir Starmer has called on the UK government to adopt a Scottish government style U-turn over A level results.

Politics today

  • Parliament remains in recess.
  • ONS infection rate survey will be released at midday.

Stock market moves

  • Uncertainty over the US’ new stimulus measures and flat Chinese economic data has resulted in a lack of momentum for global stocks.
  • Asian stocks had little change as Chinese data for July came in lower than analyst’s expected.
  • In the US, the S&P 500 ended 0.2% lower just shy of its record high, while Nasdaq finished up 0.3%.
  • In Europe, the FTSE 100 and STOXX 600 are both trading down around 0.7% in early hours.

Corporate announcements

* Maitland Client

Murray International Trust PLC Half-year Report
  • Total assets less current liabilities of £1.53m (2019: £1.73m), a reduction of 11.7%.
  • Equity shareholder’s funds of £1.33m (2019: 1,539m), a reduction of 13.2%.
  • Kevin Charter, Chairman, said: ” The longer term implications for the global economy, capital markets, future dividends, and even normal day to day living, are also largely unknowns at this stage. However, some potential financial consequences must be considered now ahead of events. Current widespread economic contractions will likely produce credit defaults, bond rating downgrades, equity capital raisings, on-going profit warnings and dividend cuts.”
easyJet PLC Aircraft Sale and Leaseback
  • The Company has announced the successful conclusion of its previously announced sale and leaseback programme for a total of 23 aircraft.
  • A total of £608m in profits has been generated.
  • The net book value of the aircraft was of approximately £167m.
  • Following the conclusion of this sale and leaseback programme, the Company has now raised over £2.4bl since the beginning of the Covid-19 pandemic.