Maitland/AMO Morning Monitor – Wednesday 2 September 2020

2nd September 2020

In the news

  • Lockdown rules to be tightened around Glasgow as coronavirus cases surge.
  • UK house prices reached a new high in August, rising at the fastest monthly pace in more than 16 years.
  • Millions of children in England return to school after lockdown.
  • Donald Trump backs law enforcement after visit to Kenosha, Wisconsin, where the shooting of Jacob Blake sparked civil strife.
  • Deal talks for TikTok's US operations hits speed-bump over question of whether its algorithms can be included as part of a deal.

Politics today

  • 12:00 - PMQs

Stock market moves

  • In Europe, the FTSE 100 and Eurostoxx 600 have both opened up.
  • Asian stocks were mixed this morning, with the Topix up 0.3% but the Hang Seng down 0.3%. Australian stocks rose the most across Asia-Pacific markets, with the government set to unveil more stimulus to lift the country out of its first recession in 30 years.
  • US futures marginally rose on Tuesday night, with the Nasdaq 100 climbing 0.5%.
  • Sterling has marginally fallen to the euro and dollar.

Corporate announcements

* Maitland Client

Barratt Developments PLC Annual Results for the year ended 30 June 2020
  • Total COVID-19-related costs of £74.3m, comprising £45.2m of safety costs, non-productive site costs and site-based employee costs and £29.1m related to an expected increase in site durations.
  • After COVID-19 costs, adjusted profit from operations was £507.3m (2019: £904.3m) at an adjusted operating margin of 14.8% (2019: 19.0%).
  • Profit before tax of £491.8m (2019: £909.8m), impacted by the unprecedented disruption to sales and build in the group’s fourth quarter.
  • David Thomas, CEO, said: “While COVID-19 has had a significant impact on our results, our priority has been to keep our people safe, mitigate the effect of the pandemic on our business and be able to emerge from the crisis in a resilient position. Although uncertainties remain, all of our sites are operational, we are seeing very strong consumer demand and our robust financial position means we enter the new financial year with cautious optimism. We are now renewing our focus on our medium term targets, on leading the industry in quality and service and on supporting jobs and economic growth by building the homes the country needs.”
Computacenter PLC Trading Statement
  • The successful trading performance seen in the first half of the year has continued for the first two months of the second half.
  • The Board predicts that the likely out turn for the year as a whole will be materially above the Board’s previous expectations as set out in the Group’s Trading Update Statement announced on 22 July 2020.