Centamin production rises in second quarter, G4S flags bumper profit
London open
The FTSE 100 is expected to open 76 points higher on Monday, having closed up 0.76% at 6,085.41 on Friday.
Stocks to watch
Gold miner Centamin reported higher second quarter production and said it was on track to meet full year guidance as it said the coronavirus pandemic had not materially affected operations. The company, which operates the Sukari mine in Egypt, said production rose 11% year on year to 130,994 primarily due to higher mill feed grades and, as a precautionary measure due to COVID-19, the deferral of plant maintenance shutdowns to the third quarter. It also narrowed full year production guidance to between 510,000-525,000 ounces of gold.
G4S said its first-half profit would be significantly ahead of the market consensus and that it would bring forward its results announcement to the week beginning 20 July.
Student accommodation developer Unite Group has exchanged contracts to acquire a new 300-bed development site in central Edinburgh, forming part of a wider mixed-use redevelopment, it announced on Monday. The FTSE 250 firm said total development costs were estimated to be £24m, delivering a development yield in line with its “enhanced” 8.5% target for provincial markets.
Newspaper round-up
A group of 84 of the world’s richest people have called on governments to permanently increase taxes on them and other members of the wealthy elite to help pay for the economic recovery from the Covid-19 crisis. The super-rich members, including Ben and Jerry’s ice cream co-founder Jerry Greenfield and Disney heir Abigail Disney, called on “our governments to raise taxes on people like us. Immediately. Substantially. Permanently”. – Guardian
Shoppers were allowed to return to the high street in June as stores began to reopen in England and Northern Ireland, but figures show that few chose to do so. Retail footfall collapsed by 65% compared with the same month last year, according to research by data company Springboard. The latest figures are an improvement on the 73% year-on-year decline in May, but highlight the challenges facing retailers and hospitality companies as they try to encourage worried customers to return as the coronavirus lockdown eases. At the same time online shopping has soared, as consumers browse and order from the comfort and safety of their home. – Guardian
Britain has become Europe’s “zombie” capital, accounting for a third of the region’s indebted companies kept alive by record low interest rates and bailouts. The share of UK non-financial businesses which were "zombies" has jumped six percentage points to 15pc in the last year, the highest level in Europe, according to data from Bank of America. – Telegraph
Airports are set to axe up to 20,000 jobs unless the Government intervenes by waiving business rates to help them cope with the Covid-19 crisis, ministers have been warned. The Airports Operators Association (AOA) today announces its appeal for urgent business rates relief to bring the industry in line with the hospitality, leisure and retail sectors and other nations that have benefited from such support. -Telegraph
Itsu has joined the growing list of restaurant chains to explore restructuring options as the coronavirus crisis continues to reshape the high street. The sushi and healthy Asian food chain’s appointment of advisers to look at options including a company voluntary arrangement (CVA) comes as the administrators of Casual Dining Group enter exclusive talks over a sale to Epiris, a private equity firm. – The Times
US close
Stocks on Wall Street finished higher on Friday, with the Dow Jones Industrial Average closing up 1.44% at 26,075.30.
At the same time, the S&P 500 added 1.05% to 3,185.04, and the Nasdaq Composite advanced 0.66% to 10,617.44.