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Weekly review

By Josh White

Date: Friday 16 Oct 2020

(Sharecast News) - The FTSE 100 ended the week down 87.07 points, at 5,919.58.
Equity view

Hedge fund Man Group reported a rise in third-quarter funds under management on Friday, partly thanks to "robust" net inflows, although it also struck a note of caution about the outlook.

Howden Joinery said on Friday that Mark Robson will step down as deputy chief executive and chief financial officer on 26 December and will be succeeded as CFO by Paul Hayes, who previously held the same role at Consort Medical.

Jupiter Fund Management posted a bigger than expected rise in the amount of funds that it was charged with supervising during the third quarter, thanks to stronger than anticipated market returns both in its legacy business and at recently acquired Merian Global Investors.

Fashion retailer Superdry said on Friday that Nick Gresham has decided to step down as chief financial officer with immediate effect.

Schroders reported a rise in third-quarter assets under management on Thursday.

Domino's Pizza said on Thursday that it expects full-year profit to be in line with market consensus despite the uncertain backdrop, as it reported a rise in third-quarter sales and an "exceptional" digital performance.

British American Tobacco has nominated Luc Jobin to take over as chairman following the intended departure of Richard Burrows in April 2021.

Budget airline Ryanair said it was cutting planned winter capacity by a third due to the latest round of travel restrictions across Europe.

Distribution and services group Bunzl reported a rise in third-quarter revenue on Wednesday thanks to the sale of Covid-19 related products, as it said second-half revenue is expected to grow strongly.

European food-ordering firm Just Eat on Wednesday reported a 46% year-on-year rise in orders during the third quarter, driven by continuing coronavirus curbs.

Music rights investor Hipgnosis Songs Fund said it had bought the song catalogue of Grammy-award-winning songwriter and producer L.A. Reid, for an undisclosed sum.

IT provider Kainos Group said on Wednesday that customer demand continued to be strong year-to-date, with the group now expecting full-year results to be "significantly ahead" of forecasts.

A shareholder motion calling for mining giant BHP to stop activity that could desecrate or destroy Aboriginal cultural heritage sites has been withdrawn, the company said on Tuesday.

French Connection reported a widening of its interim losses on Monday as sales slid due to the coronavirus pandemic.

Property investment and development firm Derwent London has collected 80% of rents for the September quarter on their due date, an improvement on both the June and March quarters.

Sabre Insurance Group said its performance in the first three quarters of the year was consistent with its expectations on Tuesday, reporting an increase in prices to cover underlying claims and other cost inflation of around 10% per year in the nine months ended 30 September.

IAG has replaced Alex Cruz as chief executive of British Airways with Aer Lingus's Sean Doyle in a shake-up under the group's new boss Luis Gallego.

Great Portland Estates said on Monday that 73% of its September rent has been collected despite the pandemic but that the outlook remains uncertain due to the impact of the Covid-19 crisis.

National Express has appointed former FedEx executive Ignacio Garat as its chief executive, ending a four-month search for a new boss.

Industrial software group Aveva said first-half revenue would be broadly in plan with expectations and maintained full-year guidance.

Equity view

Londoners will be subject to Tier-2 Covid-19 restrictions from Saturday, meaning that the mixing of households indoors and at pubs and restaurants will not be allowed.

The UK unemployment rate rose more than expected August, hitting its highest level in three years as the coronavirus pandemic takes its toll.

UK retail sales jumped to a near 11-year high in September, boosted by continued demand for home office products as well as consumers getting their Christmas shopping underway, industry data showed on Tuesday.

UK grocery sales jumped in September, industry data showed on Tuesday, as more stringent restrictions were introduced to tackle the resurgence in Covid-19.

Source BioScience, a specialist in Covid-19 diagnostics, is to return to the London stock market in a potential £130m initial public offering.

The global economy will endure a slightly less horrid contraction over the course of the year than previously anticipated, the International Monetary Fund said.

The hospitality sector is considering legal action against proposed new Covid-19 lockdown rules, which could see pubs, bars and other nighttime venues close once again.

The Bank of England has asked high street lenders to detail how prepared they are for negative interest rates, in the clearest confirmation yet that the Monetary Policy Committee is actively considering the unprecedented move.

The number of unemployed in the UK could rise to 3m by Christmas as the government's coronavirus furlough scheme ends this month, a leading think tank warned on Monday.

Goldman Sachs remains 'bullish' on the outlook for oil and natural gas prices, even in the event of a victory for Democratic party candidate Joe Biden at the next US Presidential election on 3 November.

International events

Americans continued to splash out at pace last month, despite the slowdown in hiring and a rebound in Covid-19 infections in many states.

The American consumer grew a bit more confidence in October, the results of the most closely followed gauge for confidence across the country revealed.

Initial jobless claims rose unexpectedly from last week's upwardly revised print of 845,000 to 898,000 in the week ended 10 October, well above expectations for a reading of 825,000.

Manufacturing activity in the US mid-Atlantic region accelerated sharply in October, the results of one of the most closely-watched surveys for the sector revealed.

The slowdown of the Euro zone's recovery from the Covid-19 pandemic continued as industrial production data revealed a sharp slowdown in August, official data showed on Wednesday.

Producer prices in the States increased more than expected last month, boosted by higher prices for food.

German September consumer prices fell 0.2% month on month and against the same month last year, the federal statistics agency Destatis said on Tuesday.

China's economy strengthened in September, government data showed on Tuesday, as Covid-19 restrictions around the world eased and both domestic and global demand picked up.

German investor sentiment deteriorated more than expected in October amid concerns about the Covid-19 pandemic, Brexit and the US presidential election, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.

Consumer price inflation rose as expected last month but was unchanged at the core level amid falling prices for apparel and transportation services.


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