Maitland/AMO Morning Monitor – Friday 16 July 2021

16th July 2021

In the news

  • Revolut has become Britain's most valuable fintech firm of all time after a £578m fundraising gave it a £24bn price tag.
  • The House of Lords economic affairs committee said today that the BoE had failed to justify its flagship QE policy.
  • The UK has put the estimate of the financial settlement after it left the EU at £37.3bn.
  • Manchester City’s parent company has raised $650m in one of football’s biggest ever debt deals.
  • US lawmakers are drawing up plans for a tax on imports from carbon-polluting countries.

Politics today

  • The House of Commons is not sitting today.

Stock market moves

  • In the US, the Nasdaq 100 fell 0.7% and the S&P 500 fell 0.3%.
  • Asian stocks dipped as China’s Shanghai Composite index declined 0.6% and South Korea’s Kospi index retreated 0.4%.
  • In Europe, the FTSE 100 is up 0.27% and the STOXX 600 is up 0.06%.

Corporate announcements

* Maitland Client

Burberry Group PLC First Quarter Trading Update
  • Comparable store sales rebounded strongly, rising 90% vs 2020 and 1% vs 2019.
  • Full-price sales growth of 26% vs 2019.
  • Now expect to be a £114m headwind on sales and £40m headwind on adjusted operating profit for FY22.
  • Marco Gobbetti, CEO, said: “Despite the continuing challenging external environment, we are very pleased with the progress against our strategy. With the Company firmly set on a path of growth and acceleration, we are confident of achieving our medium-term goals”
Homeserve PLC Trading Statement
  • The outlook for the full year remains in line with the guidance.
  • Home Experts is on track to reach profitability in this financial year.
  •  Expects to deliver an acceleration in performance in FY22 compared to FY21.
Rio Tinto PLC Rio Tinto second quarter production results
  • Aluminium production of 0.8m tonnes, 4% higher than the second quarter of 2020.
  • Titanium dioxide slag production of 298 thousand tonnes, 14% higher than the second quarter of 2020.
  • Mined copper production of 115.5 thousand tonnes, 13% lower than the second quarter of 2020.
  •  Jakob Stausholm, CEO, said: “Our first half performance has reaffirmed my belief that we have identified the right priorities to strengthen the business: to become the best operator, strive for impeccable ESG credentials, excel in development and secure a strong social licence. We have made initial progress against our priorities, but a large volume of work remains to make Rio Tinto even stronger, so we can continue to deliver superior returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society.”
Ninety One PLC 1st Quarter Update
  • Ninety One today confirms its assets under management at 30 June 2021 of £139.0bn (30 June 2020: £118.0bn; 31 March 2021: £130.9bn).
DCC PLC Interim Management Statement
  • Operating profit growth was ahead of the prior year and modestly ahead of expectations.
  • Organic profit growth in DCC Healthcare and DCC Technology.