TUI reduces winter programme further, Kingfisher profits rise in first half
By Josh White
Date: Tuesday 22 Sep 2020
(Sharecast News) - London open
The FTSE 100 is expected to open 27 points higher on Tuesday, having closed down 3.38% at 5,804.29 on Monday.
Stocks to watch
Travel giant TUI said it continued to anticipate low single-digit hundreds million of cash outflow per month for the final quarter of the financial year after paying out more refunds to customers in August and September. The company added that its winter 20/21 programme has been further reduced by 20% to around 40% of adjusted capacity reflecting the current uncertainty relating to travel restrictions.
Kingfisher reported a "resilient" first half performance on Tuesday, with its sales falling 1.1% at constant currencies to £5.9bn, reflecting the impact of Covid-19 in the first quarter, partially offset by a "strong" recovery in the second quarter. The FTSE 100 home improvement retailer's adjusted pre-tax profit was ahead 23.1% year-on-year at £415m for the six months ended 31 July. It declared no interim dividend, however, given the ongoing uncertainty around the pandemic.
Newspaper round-up
Pubs, bars and restaurants in England will have to shut by 10pm from Thursday under new nationwide restrictions to halt an "exponential" rise in coronavirus cases. Police have also been handed powers to issue £1,000 fines and make arrests to enforce 2 metre social distancing in pubs and restaurants, the Guardian has learned. Boris Johnson is expected to make an address to the nation on Tuesday setting out the new measures. - Guardian
The fashion chain J Crew is to permanently close all six of its UK stores in the latest exit by a US retailer. The brand, known for its preppy style, has appointed FRP advisory as liquidators to its UK business, which has a head office in London and employs nearly 80 staff. - Guardian
The accounting watchdog has delivered a long-awaited report setting out possible breaches of professional standards by KPMG in its audit of collapsed government contractor Carillion. The Financial Reporting Council (FRC) said it sent its initial investigation report to KPMG on Aug 28 following its investigation into the firm's audit of Carillion's accounts in 2014, 2015 and 2016, along with additional work during 2017. - Telegraph
Thousands of investors in bonds issued by a firm run by a descendant of the Duke of Wellington's brother stand to lose all their money unless they agree to a rescue deal. Wellesley Finance, founded by Graham Wellesley, the 8th Earl Cowley, encouraged ordinary savers to put millions of pounds into property development projects, many of which have stalled during the pandemic. - The Times
The alleged fraud at NMC Health took place over at least eight years and involved thousands of transactions, according to the acting chief executive of the former FTSE 100 private healthcare company. Michael Davis, who was promoted from chief operating officer in February, also claimed the accounting scandal was particularly complex because unnamed NMC employees had deleted or destroyed records. - The Times
US close
Wall Street stocks closed lower on Monday as Chinese trade relations, a potential second wave of the Covid-19 pandemic and stimulus negotiations were all in focus.
At the close, the Dow Jones Industrial Average was down 1.84% at 27,147.70, while the S&P 500 was 1.16% weaker at 3,281.06 and the Nasdaq Composite saw out the session 0.13% softer at 10,778.80.
The Dow Jones closed 509.72 points lower on Monday, extending last week's losses.
Talks surrounding a second US stimulus bill were in focus on Monday as the passing of Supreme Court Justice Ruth Bader Ginsburg, and the nomination process for her successor ahead of the election, was seen as potentially throwing a spanner in the works and delaying the bill until sometime after 3 November.
Donald Trump said he would announce his nomination for Bader Ginsberg's vacant seat by Saturday.
Also on investors' minds, news that the UK was considering yet another national lockdown to curb an increase in new cases of Covid-19 across the country led to sharp declines in stocks of Carnival, Southwest Airlines and Delta Air Lines.
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