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FTSE to slide as investors await Sunak’s wage subsidy package – live updates

LSE - REUTERS/Toby Melville/File Photo
LSE - REUTERS/Toby Melville/File Photo
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06:52 AM

Cineworld warns it may need to raise more cash

Cineworld warned that it may need to shore up its finances after plunging to a massive half-year loss.

My colleague Simon Foy reports:

The FTSE 250 company reported a $1.6bn (£1.3bn) pre-tax loss for the six months to June, compared to a profit of $139.7m last year as it was forced to shut the majority of its theatres from mid-March to August due to the pandemic.

Revenues plunged by two-thirds to $712.4m during the period, while admissions came in at just $45m.The company said uncertainties around a second wave of Covid-19, leading to a prolonged recovery for the industry, meant that the future of the company could be at risk.

It said: “The directors recognise the challenges facing the business and the uncertainty around the recovery of the cinema industry following the impact of Covid-19, and the potential risk that remain, which represent uncertainties with respect to the group's ability to continue as a going concern.”

06:49 AM

Pets at Home says trading momentum has continued

Pets at Home - INMUK Media Mogul PMS

Pets at Home says returned trading momentum across its operations has cotinued over recent weeks, with shopper habits returning to normal.

It achieved “double-digit” like-for-like sales growth over the eight weeks to September 10th, adding:

This is testament to several factors, not least the inherent resilience in our pet care model and the underlying pet care market.

The FTSE 250 retailer said its underlying pre-tax profit is likely to be ahead of market expectations based on current trading, but warned Covid-19 “continues to create a number of material uncertainties around the trading environment”.


06:11 AM

Agenda: Stocks set to slide (again)

Good morning. The FTSE 100 is set to slump again as more European countries tighten coronavirus restrictions in an attempt to slow the rise in infections.

In France, bars and restaurants in Marseilles and Aix-en-Provence will shut down while gatherings of more than 10 people in Paris will be banned and pubs will have to close early.

Meanwhile, all eyes will be on Chancellor Rishi Sunak at 12:30pm today as he sets out a new multi-billion pound support package in the Commons, which is expected to include wage subsidies, VAT cuts and new loans.

5 things to start your day 

1) City centres are facing further pain as employers reverse plans to bring workers back to the office.  PwC, HSBC, Goldman Sachs, Citigroup, Deutsche Bank and Lloyds have changed tack due to the changing Government guidance. 

2) The Bank of England dismissed a tip-off that hedge funds had paid for privileged access to press conferences, a year before the issue erupted into public scandal. 

3) Ryanair's chief executive Michael O'Leary says winter bookings have collapsed, and criticises the Government's 'incompetent' virus response. 

4) Designer Paul Smith says the pandemic is the worst challenge he has faced during 50 years in the industry, and calls on landlords to be understanding. 

5)  Asda brings back door marshals to fight a second wave, with 1,000 workers to be stationed in and outside stores to remind people to wear facemasks. 

What happened overnight 

Asian shares fell on Thursday following a slump on Wall Street overnight, as a series of warnings from US Federal Reserve officials underscored investor worries over the resilience of the economic recovery.

US Federal Reserve Vice Chair Richard Clarida said on Wednesday that the US economy remains in a "deep hole" of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers "are not even going to begin thinking" about raising interest rates until inflation hits 2pc.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.35pc in the morning session on broad losses across the region.

Chinese blue-chips dropped 1.09pc, Hong Kong's Hang Seng fell 1.72pc, Seoul's KOSPI sank 1.73pc and Australian shares were 1.18pc lower. Japan's Nikkei fell 0.74pc.

A second wave of coronavirus infections in Europe threatened the economic recovery in the region pushing equities lower and propping up the safe-haven dollar.

On Wednesday, the Dow Jones Industrial Average fell 1.92pc, the S&P 500 lost 2.37pc and the Nasdaq Composite dropped 3.02pc.

Coming up today

Interim results

Cineworld, Funding Circle, Pendragon, SIG

Full-year

DFS Furniture, Go-Ahead, Smiths

Economics

CBI distributive trades survey (UK); Ifo business climate index (Germany); jobless claims (US)