Maitland/AMO Morning Monitor – Wednesday 16 September 2020

16th September 2020

In the news

  • After worrying figures on UK redundancies, Chancellor Rishi Sunak has signalled that he could take further action to prevent a wave of unemployment.
  • To satisfy the White House, ByteDance might place TikTok's global business in a new US-headquartered company with Oracle investing as a minority shareholder.
  • Boris Johnson is trying to strike a deal with senior party figures that form part of the Conservative opposition who are against his Brexit plans.
  • Travel Company, Thomas Cook, has relaunched as a solely online holiday brand after receiving investment from Chinese conglomerate Fosun.
  • The EU is set to offer its banks an 18-month extension for access to UK-based clearing houses to prevent a hit to financial stability after the transition period expires.
  • Hitachi could announce it is scrapping plans to build a nuclear power station at Wylfa on Anglesey as soon as today. This was set to be the largest energy project in Wales. The UK government has not commented.
  • Health Secretary, Matt Hancock, has admitted that the UK's testing crisis could take weeks to resolve. He suggested rationing may need to be reintroduced, with the testing programme "having to prioritise once again".

Politics today

  • The Internal Market Bill is in its second day of the committee stage.
  • Justice Secretary Robert Buckland is set to make a statement on the government's Sentencing White Paper.
  • Foreign Secretary, Dominic Raab, is in Washington DC until Thursday, where he’s meeting U.S. Secretary of State Mike Pompeo and Democrat leaders.

Stock market moves

  • While China’s currency gained more ground against the dollar, Asian stocks struggled ahead of the US Federal Reserve decision on interest rates.
  • China’s CSI 300 index of Shanghai-and Shenzhen- stocks fell 0.3% while Japan’s Topix index and Hong Kong’s Hang Seng both rose 0.3%.
  • As a result of investor closely monitoring the US central bank meetings, on Wall Street, the S&P 500 closed 0.5% higher while the Nasdaq Composite rose 1.2%.
  • The FTSE 100 index was down by c. 0.1% at opening.

Corporate announcements

* Maitland Client

Redrow PLC Final Results
  • Revenue down 37% to £1.34bn (2019:£2.11bn).
  • Profit before tax down 66% to £140bn (2019:£406 bn) due to COVID-19 and costs and impairments in connection with the scaling-back of its London business.
  • Encouraging trading since start of financial new year with reservations 12% ahead.
  • John Tuttte, Executive Chairman, said: “We brought forward an order book of £1.42bn: up 39%, and reservations, in terms of value, in the first eleven weeks of the new financial year, are 12% ahead…This, combined with reduced investment in London, will deliver strong operating cash flow over the coming months to support our regional growth plans and, subject to market conditions, allow dividend payments to resume in 2021”.
Plus500 LTD AGM Trading Update
  • Operational momentum achieved during H1 2020 has continued into the second half to date, with the Company making excellent progress across all key commercial and financial performance metrics.
  • This performance has been primarily driven by the strength and differentiation of the Company’s proprietary technology.
  • Revenue, in particular Customer Income, has remained strong in H2 2020 to date, supported by further growth in the Company’s Active Customer base.
  • The Board remains very confident about the outlook for Plus500, particularly given the Company’s outstanding performance so far this year.