Rolls-Royce expecting £2bn cash burn, AstraZeneca gets approval for Symbicort

London open

The FTSE 100 is expected to open six points higher on Tuesday, having closed down 0.84% on Monday at 6,638.85.

Stocks to watch

Rolls-Royce expects £2bn in cash burn this year with widebody engine flying hours falling to 55% of 2019 levels compared with 70% previously forecast as new variants of Covid-19 and enhanced travel restrictions created short-term uncertainty. The company on Tuesday said it expected to turn cash flow positive “at some point during the second half, reflecting our forecasted profile of flying hours as they recover from today's low base”.

AstraZeneca said on Tuesday that its ‘Symbicort Turbuhaler’, with budesonide and formoterol, has been approved in China as an anti-inflammatory reliever to be taken as-needed in response to symptoms to achieve asthma control in patients with mild asthma aged 12 years and older. The FTSE 100 drugmaking giant said the approval by the National Medical Products Administration (NMPA) was based on positive results from the ‘SYGMA 1’ and ‘SYGMA 2’ Phase 3 trials, which evaluated the efficacy of Symbicort Turbuhaler taken as-needed as an anti-inflammatory reliever compared with standard-of-care therapies in mild asthma.

JD Sports Fashion confirmed on Tuesday that it is exploring additional funding options as it looks to increase its flexibility "to invest in future strategic opportunities'', and said this may involve a non preemptive equity placing. The retailer, which was responding to recent press speculation that it was exploring an equity capital raise, said a further announcement will be made as and when appropriate.

Newspaper round-up

A growing shortage of key construction materials could delay housebuilding this year as builders fight for fresh supplies against a backdrop of coronavirus-related challenges and price increases. One builders’ merchant said they were being given an August delivery date for roofing materials, such as pitched roof tiles, compared with a usual three-month wait because, even with extra shifts, UK factories were struggling to keep up. - Guardian

Janet Yellen has been confirmed as the first woman to head the US Treasury. The former chair of the Federal Reserve and noted economist was approved by the Senate on an 84-15 vote. She sailed through a congressional hearing last week and had already been unanimously approved by the Senate finance committee and backed by all living former treasury secretaries. - Guardian

One of the country's leading think tanks has called for controversial tax reforms that could increase bills for millions of self-employed workers and business owners. The Institute for Fiscal Studies' new report took aim at a tax system which “discourages employment, investment and risk-taking” and criticised the lower rates levied on capital gains, dividends and self-employment income.- Telegraph

Leon Black, founder and chief executive of private equity giant Apollo Global Management, is stepping aside after a review found he made larger-than-expected payments to the late Jeffrey Epstein. The billionaire paid Epstein a total of $158m (£116m) in fees for advice on trust and estate tax planning in the five years to 2017, according to a report by law firm Dechert. This is much more than was previously known. - Telegraph

Emergency Covid-19 schemes are being subjected to an “eye-watering” level of fraud, one of Britain’s most senior crime fighters has warned. Graeme Biggar, of the National Crime Agency, said that there would be “substantial” losses for the taxpayer related to criminals targeting multi billion-pound taxpayer support such as the wage furlough and the bounce back loan schemes.- The Times

US close

Wall Street stocks turned in a mixed performance on Monday ahead of some key corporate earnings later in the week.

At the close, the Dow Jones Industrial Average was down 0.12% at 30,960.00, while the S&P 500 was 0.36% firmer at 3,855.36 and the Nasdaq Composite saw out the session 0.69% stronger at 13,635.99.

The Dow closed 36.98 points lower on Monday, extending losses recorded at the tail end of last week after new President Joe Biden got to work on pushing his proposed $1.9trn stimulus package through Congress.

With things being quiet on the earnings front on Monday, market participants held out hope for updates on the aforementioned stimulus programme and mulling over the Covid-19 pandemic itself.

Joe Biden's pick for surgeon general said over the weekend that the US would have to race to keep up with the now mutating coronavirus.