HSBC interim profits plunge, Hammerson looking to sell VIA interest
London open
The FTSE 100 is expected to open 15 points lower on Monday, having closed down 1.54% at 5,897.76 on Friday.
Stocks to watch
HSBC interim profits plunged 65% as it increased provisions for bad debts by $3.8b amid the coronavirus crisis. The Asian-Anglo bank set aside $3.8bn to cover potential loan losses in the three months to June from $555m a year ago, more than the $2.7bn estimated in company-compiled analyst forecasts. Pre-tax profits fell to $4.3bn, compared to $12.4bn for the same period a year ago.
Hammerson confirmed on Monday that, following press speculation over the weekend, it is in discussions over a possible disposal of its 50% interest in VIA Outlets to its joint venture partner APG, and was also considering an equity raise via a rights issue. The FTSE 250 firm said it was taking “proactive measures” around its cost base and cash flow, and had secured approval for the issue of up to £300m under the Covid Corporate Finance Facility (CCFF) from the Bank of England. It said that, following the reopening of its flagship destinations across Europe, footfall and sales were improving, with third quarter rent collection in the UK now over 30%.
Hiscox swung to a loss in the first half as the Lloyd's of London insurer set aside $232m for Covid-19 related claims. The company reported a pretax loss of $138.9m (£106m) for the six months to the end of June compared with a $168m profit a year earlier. Gross premiums written fell to $2.236bn from $2.338bn.
Newspaper round-up
Two new tests for Covid-19 that are said to deliver results within 90 minutes are to be introduced across NHS hospitals and care homes, to speed up diagnosis ahead of winter and differentiate coronavirus infection from flu, the government says. But some experts were surprised by the government’s decision, saying the particular tests were not well-known. No data had been published concerning their evaluation. The government had made mistakes in buying tests that turned out to be substandard in the past, they said. - Guardian
A major incident was declared in Greater Manchester last night after coronavirus infection rates continued to rise. Gold command meetings of senior figures from the police, local officials and other agencies were held at the weekend. - The Times
Developers and landowners will be required to pay more towards building schools, hospitals and local infrastructure under a major Government shake-up of the planning system. The Housing Secretary Robert Jenrick will this week propose a new system of contributions from developers which will require them to handover more of the profits generated from rising land values. - Telegraph
The Bank of England is under pressure to open up about its controversial flirtation with negative interest rates as markets cut the odds on a dip below zero next year. City economists said the Bank’s monetary policy report this week should set out Threadneedle Street’s initial verdict on a policy tool already used for years by major institutions including the European Central Bank, the Bank of Japan and the Swiss National Bank. - Telegraph
US close
Stocks on Wall Street closed higher on Friday, with the Dow Jones Industrial Average adding 0.44% to 26,428.32.
At the same time, the S&P 500 added 0.77% to 3,271.12, and the Nasdaq Composite was 1.49% firmer at 10,745.27.