Join our community of smart investors

Today's Markets: 'Freedom day' postponed? Serco profits from test and trace & more

Follow our Markets Live blog for the latest news that affects your portfolio
June 14, 2021

Good morning and welcome to the Investors' Chronicle's live blog, bringing you the latest markets news that affects your investments. 

Euro's lift off

In any normal year, England’s pubs would have been packed to the rafters with uproarious fans yesterday afternoon, when a strike from Raheem Sterling gave the country its first win in the opening match of a European Championship.

But public screenings of the match were required (in theory) to be a heavily toned-down event, with supporters separated on socially distanced tables and asked to wear masks indoors. Pub-owners hoping these restrictions would at least be lifted before England’s third group match against the Czech Republic on 22 June will now be dismayed when they check the news this morning.

But 'freedom day' to be pushed out

Various news organisations are reporting that Boris Johnson will today announce a delay to the much-anticipated final relaxation of England’s coronavirus restrictions, initially slated for 21 June, as the country looks to limit the rapid spread of the Delta variant. The anticipated move is already sparking backlash from Conservative backbenchers, and will deal another blow to hospitality venues who had hoped the summer would bring a huge rebound in activity after more than a year of limits on capacity.

These companies not only face the problem of continued restrictions, but also the looming prospect of an end to the furlough scheme that has kept their businesses afloat throughout the Covid crisis. Despite expectations that lockdown curbs will continue four weeks longer than originally hoped, the job support programme is still anticipated to begin phasing out at the end of this month and end completely before October.

Shares in leading pub operators JD Wetherspoon (JDW) and Marston’s (MARS) both dropped slightly in morning trading while travel stocks such as International Consolidated Airlines (IAG) and easyJet (EZJ) were also under pressure. OT

Test and trace boost

One company which is benefitting from the upsurge in demand for Covid testing in the UK over recent months is Serco, which is heavily involved in delivering the Government's much maligned Test and Trace programme - it reported this morning that revenues will come in ahead of expectations as all parts of its business outperformed, with Test and Trace contracts at the forefront - more in our blog below. 

Follow our live blog below: