London pre-open: Stocks seen higher after solid Asian performance
By Michele Maatouk
Date: Monday 28 Sep 2020
(Sharecast News) - London stocks were to rise at the open on Monday following a solid session in Asia.
The FTSE 100 was called to open 66 points higher at 5,908.
CMC Markets analyst David Madden said: "Stocks in Asia are higher. At the weekend it was reported that industrial profits in China increased by 19.1% in August, which was slightly lower than the 19.6% growth posted in July. The latest reading was the fourth consecutive month of growth."
Brexit was set to be in focus again this week, with talks between the UK and the EU due to resume on Tuesday.
"The latest discussions have been relatively positive according to David Frost, the UK's chief negotiator," said Madden. "It is understood that Prime Minister Johnson wants to strike a deal, but not at any cost, so the discussions are likely to go down to the wire."
Meanwhile, the Covid-19 crisis is expected to remain at the forefront of investors' minds following reports the government is set to ban all socialising indoors and close pubs and restaurants in Northern England and London.
In corporate news, Diageo said it made a good start to the current financial year as the drinks company's US business beat expectations. The maker of Johnny Walker whisky and Guinness beer said its outlook had improved since the end of June. Sales improved compared to the second half of last year but sales and margins will be lower than in the first half of last year.
William Hill and Caesars Entertainment confirmed they were in advanced talks on a £2.9bn cash offer for the UK bookmaker.
Caesars would offer 272p per William Hill share, a premium of around 57.6% to the closing price 172.55p on September 1, the last business day before Caesars' first approach.
Housing provider Mears Group has completed its exit from domiciliary care, it announced on Monday, with the disposal of its Scotland Domiciliary Care business (SDC).
The London-listed firm said the disposal to Cera Care Operations Holdings, which also acquired its England and Wales Domiciliary Care business, was for £2.0m cash payable on completion and a further £0.5m payable 12 months after completion. It said the proceeds from the disposal would be used to reduce the company's indebtedness.
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