BHP iron ore output rises, Intermediate Capital momentum continues

London open

The FTSE 100 is expected to open 47 points higher on Tuesday, having closed down 0.46% at 6,261.52 on Monday.

Stocks to watch

BHP Group reported a 7% rise in fourth-quarter iron ore output, but warned the resurgence of coronavirus outbreaks threatened the short-term demand outlook for its main commodities. The Australia-based mining giant met guidance for iron ore production of a record 67m tonnes for the quarter, up 4%, and 248m tonnes for the financial year, driven by strong Chinese demand.

Alternative asset manager Intermediate Capital Group posted a 1.0% quarter-on-quarter increase in assets under management to €45.6bn during the second quarter, as portfolio valuations recovered amid good or positive signals for future activity. The firm, which specialises in private debt, credit and equity said that realisation activity had resumed at pre-Covid 19 valuations and that it had clinched €2.4bn of deals in exclusivity, terming the latter a "good indicator of investment pace and future fundraising pipeline". Fundraising momentum was also said to have continued, with the company having raised €1.2bn of new money in the first quarter "with good visibility for the coming months".

HICL Infrastructure has agreed to acquire the remaining 50% interest in the M17/M18 Gort to Tuam Road public-private partnership in the Republic of Ireland, it announced on Tuesday, from the Marguerite I Fund. The FTSE 250 firm said consideration was €41m (£36.97m), with the transaction expected to complete by the end of September. It acquired an initial 10% interest in the project at financial close in 2014, and an additional 40% interest in 2019, and with completion of the incremental investment, HICL would hold a 100% interest in the road asset.

Newspaper round-up

EU leaders have reached a historic agreement on a €750bn pandemic recovery fund and their long-term spending plans following days of acrimonious debate at what was the bloc’s longest summit in two decades. As the meeting reached its fifth day, the 27 exhausted heads of state and government finally gave their seal of approval to the EU jointly borrowing debt to be disbursed through grants on an unprecedented scale in the face of an economic downturn not seen since the Great Depression. - Guardian

Interest in buying used cars has jumped in recent weeks as people look for alternatives to public transport following government pandemic warnings, according to online marketplaces. The coronavirus pandemic has caused an exodus from public transport in the UK, with signs of people looking for other means of getting around, including scooters, mopeds and bikes, as well as cheaper cars. – Guardian

Royal Bank of Scotland has told more than 50,000 staff they will be working from home until next year in a blow to Boris Johnson’s efforts to get employees back to the office. The NatWest owner has told the vast majority of its employees that they will continue to do their jobs remotely until at least the end of December. It had initially hoped to start bringing workers back four months earlier. – Telegraph

Hermes has said that it will create 10,500 new jobs in Britain to capitalise on the shift to online shopping. The delivery company said that it would invest £100 million after a surge in demand during lockdown. The jobs will include 1,500 full-time roles in its Leeds head office, warehouse and delivery network and 9,000 freelance couriers. – The Times

Insurance companies have been criticised for comparing the government’s lockdown advice during the Covid-19 outbreak to guidance on smoking, drinking alcohol and eating vegetables. Lawyers for the Financial Conduct Authority questioned the claims made by insurers during the first day of a High Court test case brought by the City regulator. – The Times

US close

US stocks closed higher on Monday as the potential for further economic stimulus and various novel coronavirus vaccine prospects helped the Nasdaq Composite turn positive for the year.

At the close, the Dow Jones Industrial Average was up 0.03% at 26,680.87, while the S&P 500 was 0.84% firmer at 3,251.84 and the Nasdaq Composite rallied 2.51% to 10,767.09.

The Dow closed 8.92 points higher on Monday, shaking off the dour sentiment seen at the end of last week as shares in Netflix and other tech giants weighed on the Street.

Investors had their attention focussed on Capitol Hill on Monday, with lawmakers kicking off negotiations on new stimulus measures to help the US economy through the Covid-19 downturn.

With Donald Trump's $600-a-week stimulus benefits for unemployed Americans set to expire later in the month, much uncertainty remains about the size and shape of the next bill, particularly on the consumer side.

In terms of coronavirus headlines, cases continued to rise at an alarming rate across the US, with more than 70,000 new confirmed cases in the country on Saturday, according to Johns Hopkins.