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Monday Update

DB Live: £51bn wiped off stocks; Rolls-Royce ‘options’

9.30pm: Global stocks fall

Fresh pandemic fears and concerns about a delay in US stimulus measures saw further falls on markets overnight.

Hong Kong’s Hang Seng index was down 0.5% while on Wall Street the Dow Jones Industrial Average fell 1.84%, the S&P 500 lost 1.16%, and the Nasdaq Composite dropped 0.13%.

4.45pm: London slides

London Stock Exchange

Investors took a battering as warnings of more lockdowns hit confidence and wiped £51 billion off the value of top stocks.

The FTSE 100 remained deep in the red, closing 202.76 points (3.38%) lower at 5,804.29.

British Airways’ parent company IAG was down 12% to its lowest level since 2012, while there was a 10% loss for the jet engine manufacturer Rolls-Royce (see below) and a 9% tumble for the pub chain JD Wetherspoon.

10.30am: Shore goes employee-owned; Keenan expands

Scotland’s largest product design company Shore is switching to employee ownership.

Keenan Recycling, Scotland’s largest food and garden recycling business, has invested almost £4.5 million into its vehicle fleet to further grow market share in England.

Full story here

9.15am: Haymarket site acquired

A derelict site close to Edinburgh’s Haymarket station and earmarked for student accommodation may be developed for other purposes.

Full story here

8.30am: Rolls-Royce statement

Rolls-Royce

Rolls-Royce said it notes the continued media speculation regarding the possibility of the Group undertaking a fund raising.

“We continue to review all funding options to enhance balance sheet resilience and strength. Amongst other options, we are evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.

“No final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.”

8.15am: London falls sharply

The FTSE 100 fell sharply by 142.09 points (2.37%) to 5,864.96 in early trade on fears of a second lockdown.

Domestically focused firms such as broadcaster ITV and the banking sector took a big hit.

Potential new travel restrictions saw British Airways owner International Consolidated Airlines top the FTSE 100 fallers chart.

Going up were lockdown beneficiaries Ocado and Just Eat Takeaway on a potential renewed surge in demand for online grocery and dine-in orders.

8am: Calnex IPO

Linlithgow based Calnex Solutions will become the first Scottish IPO for two years.

Full story here

7am: Craneware optimistic

Craneware, the healthcare financial solutions company, is seeing the sales cycle “normalising”, according to chief executive Keith Neilson.

Full story here

Superdry revenue falls

Superdry reported a fall in revenue and a deeper annual loss.

Revenue for the financial year that ended 25 April 25 fell 19% to £704.4 million, with the firm’s pretax loss deepening to £166.9m from £89.3m.

The sales fall reflected a planned move away from “persistent discounting”, and also the hit from Covid-19 in the fourth quarter, with its entire store estate closed from 22 March to the financial year-end.

House prices higher

House prices rose by 5% in the year to September, according to Rightmove’s latest house price index.

The property website said buyers looking for larger properties following the coronavirus lockdown are behind the increase in activity. 

6am: Sunak support

Rishi Sunak

Chancellor Rishi Sunak will announce a one-month extension to the Treasury’s UK-wide programme of business support loans, according to government sources.

Mr Sunak is expected to unveil plans to extend its four loan schemes for applications until the end of November, with banks allowed to process loans until the end of the year, the Financial Times reports.

HSBC and Standard Chartered drop

HSBC and Standard Chartered’s Hong Kong saws their shares drop sharply in Hong Kong after media reports that they and other banks moved large sums of allegedly illicit funds over a ten year period.

Shares in HSBC fell by as much as as much as 4.4% and Standard Chartered by up to 3.8%.

In a statement to the Reuters new agency HSBC said: “All of the information provided by the ICIJ [International Consortium of Investigative Journalists] is historical.”

Standard Charted said in a statement: “We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes.”



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