Bellway returns to dividend payouts, Reckitt lifts full-year guidance

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The FTSE 100 is expected to open 20 points lower on Tuesday, having closed down 0.59% at 5,884.65 on Monday.

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Reckitt Benckiser lifted its full-year like-for-like net revenue guidance on Tuesday and posted a jump in third-quarter sales as the Covid-19 pandemic underpinned demand for its disinfection brands. Group sales on a like-for-like basis rose 13.3% in the third quarter to £3.5bn and were 12.4% higher in the year to date at £10.4bn. In the hygiene business, sales were up 19.5% on a LFL basis to £1.5bn, driven by Lysol, Finish and Air Wick, with double-digit growth in most markets.

BHP on Tuesday reported a 7.2% rise in first-quarter iron ore production as demand from China stabilised, but warned of a slowdown in the current three month period. The company produced 74m metric tons (Mt) of Western Australia Iron Ore in the three months ended to September 30, up from 69 Mt a year, slightly higher than expectations. However, BHP said December quarter iron ore production would be affected by work linking its Mining Area C and South Flank projects in Western Australia, but maintained full year guidance of 276m – 286m tonnes.

Housebuilder Bellway returned to dividend payouts as annual profits fell by 66% due to the coronavirus shutdown, although reservations had risen by a third at the start of the new financial year. Pre-tax profits fell to £236.7m from £666.2m on revenue down 30.7% to £2.2bn. The total dividend was cut to 50p a share from 150p a year earlier. Overall reservations were up by 30.6% to 239 per week in the nine weeks since 1 August. The forward order book at October 4 was £1.86bn compared to £1,311.6bn in 2019.

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Mervyn King, the Bank of England governor during the financial crisis, has told the government now is not the time to worry about record levels of national debt and that the furlough scheme could be needed throughout 2021. In a warning to ministers that additional support for Britain’s coronavirus-hit economy will be necessary over the winter while tough new local lockdowns are in place, Lord King said the government needed to step in to prevent lasting damage for jobs and growth. - Guardian

ITV is to increase its focus on streaming to compete with rivals including Netflix, in a move that will lead to job losses at its traditional TV broadcasting operation. The move, which involves the formation of a new on-demand division that will become the home of the BritBox and ITV Hub streaming services, marks the first step towards the hugely successful streaming model pioneered by Netflix. - Guardian

British officials paid up to £320m of taxpayer money to Chinese state-backed companies amid a scramble to secure medical supplies at the height of the coronavirus crisis. Health authorities agreed almost a dozen deals with firms linked to the Communist regime in Beijing as they raced to buy ventilators and PPE after Covid hit, according to Telegraph analysis of contract details published by the Government. - Telegraph

Working lunches could be exempt from Covid lockdown restrictions after an apparent “loophole” emerged. Meeting people inside pubs and restaurants in tier 2 and tier 3 areas such as London, York and Manchester is not allowed as part of efforts to try and contain the spread of coronavirus. - Telegraph

One in ten Britons are hoarding more cash at home than before the pandemic in case of an emergency, according to the Bank of England. Households have stockpiled cash since March much like they stockpiled lavatory rolls, the Bank’s chief cashier Sarah John told MPs on the public accounts committee. - The Times

US close

Wall Street stocks closed sharply lower on Monday as a continued rise in the number of new Covid-19 cases and stalled stimulus talks remained in focus.

At the close, the Dow Jones Industrial Average was down 1.44% at 28,195.42, while the S&P 500 was 1.63% weaker at 3,426.92 and the Nasdaq Composite saw out the session 1.65% softer at 11,478.88.

The Dow closed 410.89 points lower on Monday, erasing gains recorded on Friday when the index snapped a three-day losing streak.

In focus throughout the session was data from Johns Hopkins University which showed Covid-19 cases were growing by 5% or more in 38 US states as of Friday, while nationwide, the daily case average had risen by more than 16% week-on-week to almost 55,000.

Also taking up much of investors' attention were comments from House Speaker Nancy Pelosi's office on Saturday that she would be allowing the Trump administration 48 hours to reach an aid deal before the 3 November election as Pelosi and Treasury Secretary Steven Mnuchin continued talks over the weekend.