Global markets put in a mixed performance after the US announced its biggest ever postwar economic contraction. There were significant fallers among Asia-Pacific indices while European markets were up this morning, with Germany’s Dax and the FTSE 100 rising by 0.7 per cent and 0.5 per cent, respectively.
Key results to look out for on the London market this morning include NatWest and International Consolidated Airlines Group. NatWest, which was recently rebranded from Royal Bank of Scotland, was pushed into an interim operating loss by significant impairments. British Airways parent IAG is looking to raise €2.75bn.
UK company announcements
| NatWest (NWG) | Net impairments of £2.9bn pushed the lender, formely named Royal Bank of Scotland, into a £770m operating loss for the first half. The reduction in the base rate also meant the net interest margin declined 22 basis points to 1.67 per cent during the second quarter, which meant income across the retail and commercial lending business declined 9 per cent over the six month-period. |
| International Consolidated Airlines Group (IAG) | The parent of British Airways is seeking to raise €2.75bn with the support of its largest shareholder Qatar Airways. IAG recorded an interim pre-tax loss of €4.2bn and is in "active discussions" over restructuring its planned €1bn acquisition of Air Europa. |
| British American Tobacco (BAT) | Revenues edged up by 0.8 per cent to £12.3bn for the six months to June, with consumption trends in developed markets – which constitute three-quarters of group sales – staying “relatively resilient”. Operating profits rose by 16 per cent. |
| Pets at Home (PETS) | The pets specialist recorded an overall 2.2 per cent sales decline in its first quarter, although sales have picked up over the period and rose by 12 per cent over the four weeks from 19 June. |
| DWF (DWF) | Jonathan Bloomer, currently the chairman of Morgan Stanley International, will become DWF’s chairman from 1 August. The move comes after Sir Nigel Knowles switched from chairman to chief executive at the end of May after long-standing CEO Andrew Leaitherland stepped down. |
| Glencore (GLEN) | Despite production declines across the board in the first half, the mining giant said its trading arm had done well enough for the company to possibly hit the high end of its operating profit guidance for the full year, at $3.2bn (£2.4bn). |
Across the Atlantic, it was announced that US GDP had shrunk at an annualised rate of 32.9 per cent. The S&P 500 closed 0.4 per cent down yesterday, although Apple, Amazon, Facebook and Google announced resilient quarterly earnings against a woeful economic backdrop. President Donald Trump, meanwhile, yesterday questioned on Twitter whether the US election should be delayed – a move that has been rejected by senior Republicans.
Asia-Pacific indices mostly had a difficult start to the day. Japan’s Topix index dropped 2.8 per cent, while Australia’s S&P/ASX 200 undid yesterday’s rise with a 2 per cent fall. China’s CSI 300 index, however, rose 0.8 per cent.
