Maitland/AMO Morning Monitor – Friday 19 June 2020

19th June 2020

In the news

  • Yesterday Wirecard shares plunged 62% after its auditors EY said it couldn’t find €1.9bn in its accounts – which represents roughly a quarter of its balance sheet
  • Domino’s Pizza Group has been criticised for appointing a new all-male board at its AGM, shortly after Aston Martin brought in male-only directors at its AGM earlier this month
  • Boris Johnson has announced a £1bn package to help pupils in England to catch up on lost learning, including intensive tutoring for the most disadvantaged children
  • After two months, Singapore lockdown is over, and friends and family can reconvene at restaurants and bars once again
  • US weekly jobless claims totalled 1.5m yesterday, bringing the 13-week total to 46 million. That slightly exceeded the consensus economist estimate of 1.3m
  • A study has revealed that South Asian people are the most likely to die from coronavirus after being admitted to hospital in Britain

Politics today

  • 9am - European Council President Charles Michel and European Commission President Ursula von der Leyen will update the 27 member countries (via video conference) on recent conversations with Boris Johnson
  • 12pm - the Office for Budget Responsibility will publish its take on the public sector finances
  • 1pm - Former Foreign Secretary William Hague will be discussing ‘rape as a weapon of war’ at a Policy Exchange event
  • Education Secretary Gavin Williamson will hold a press conference to discuss the governments £1bn package to help pupils in England from falling behind at school

Stock market moves

  • In Europe, the FTSE opened up 0.4% and the STOXX Europe 600 opened up 0.5%.
  • In morning trading in Asia-Pacific, Tokyo’s benchmark Topix index fell 0.3 per cent while Hong Kong’s Hang Seng was down 0.2 per cent. South Korea’s Kospi shed 0.7 per cent.
  • Overnight, Wall Street’s S&P 500 edged 0.1 per cent higher while the tech-heavy Nasdaq Composite added 0.3 per cent.
  • Futures markets tipped the S&P 500 to rise 0.1 per cent when US trading begins later in the day.
  • Oil prices edged higher with Brent, the international benchmark, rising 0.7 per cent to $41.80 a barrel. US marker West Texas Intermediate climbed 0.8 per cent to $39.16.

Corporate announcements

* Maitland Client

John Wood Group PLC Trading Update
  • H1 revenues down c11% and adjusted EBITDA down c19%. Relatively robust activity in chemicals & downstream and built environment markets. Increased renewables activity.
  • Secured $1.3bn of new orders in April and May.
  • Expect net debt at 30 June 2020 to reduce from $1.43bn at December 2019 following Q1 disposals.
  • Commitment to reduce scope 1 and 2 greenhouse gas emissions by 40% by 2030.
  • FY2020 outlook: Remain focused on protecting margin in line with the Group’s strategic objectives whilst prepared for a broad range of outcomes on activity.