Oil Prices Rise On Stimulus Hopes
Oil prices rose on Monday amid bets that central banks across the world will continue to inject liquidity into the financial system to prop up economies battered by the coronavirus pandemic.
Benchmark Brent crude for November delivery rose 68 cents, or 1.5 percent, to $46.49 a barrel, while U.S. West Texas Intermediate crude futures were up 51 cents, or 1.2 percent, at $43.48 a barrel.
Brent crude futures are set to close out August with a fifth successive monthly price rise, while WTI is on track for a fourth monthly rise.
As Yoshihide Suga, the chief Cabinet secretary and a close ally of Prime Minister Shinzo Abe, emerged as a leading candidate to take over the nation’s highest political position in Japan, speculation was rife that the new PM will continue the fiscal and monetary policies that defined the Abe regime.
The ruling Liberal Democratic Party will vote on Sept. 14 to select a new leader to succeed Abe, Jiji news agency reported.
A weak U.S. dollar and a 30 percent cut in term crude supplies in October announced by Abu Dhabi National Oil Company also helped support prices.
The dollar was set for a fourth straight month of losses after Fed Chair Jerome Powell outlined an accommodative policy change last week, which could result in inflation moving slightly higher and interest rates staying lower for longer.
UAE’s Abu Dhabi National Oil Company (ADNOC) today announced 30 percent cut to October supplies in order to comply with the United Arab Emirate’s commitment to an OPEC+ pact.
Primark Shoppers Buying More Clothes, Lifting AB Foods Profit
Primark shoppers have kept buying larger baskets of clothes since stores of the low-cost fashion chain reopened, bolstering profit at parent companyAssociated British Foods Plc.
- Primark’s full-year adjusted operating profit will be at least at the top end of its forecast range of 300 million pounds to 350 million pounds ($396 million to $463 million), AB Foods said.
- Investors will be cheered that shopping baskets are still bigger than they were last year, even if the effect of an initial boom of pent-up demand after Covid-19 lockdowns has waned.
- That’s not to say this year is looking great: Sales in the U.K., Primark’s largest market, are still expected to be 12% lower on a comparable basis in the year through Sept. 12. The company expects a significant decline in earnings per share.
- Stores that depend on tourists however are still struggling. Before Covid-19, they brought in 13% of sales. After reopening, that’s down to 8%.
- Shares in AB Foods have fallen 22% this year.
- Read the full statementhere.
Man shot Sunday night in Denver – The Denver Post
A man was shot and suffered “critical injuries” Sunday night, according to a tweet from Denver police.
The shooting occurred near North Havana Street and Florence Way. The man was taken to the hospital.
This is a developing story.
Spain's PM Sanchez sees positive aspects in Bankia-Caixabank merger
Spain's Prime Minister Pedro Sanchez on Monday said there were positive aspects in the proposed merger of Spanish lenders Caixabank and state-owned Bankia.
"From the perspective of size, the Spanish financial sector has to take steps forward," Sanchez said in an interview in TVE.
The two lenders are set to agree a merger to create Spain's biggest domestic lender in the coming days, two sources told Reuters on Friday.
Dechra Pharma FY Revenue Up 6.8%
Dechra Pharmaceuticals Plc (DPH.L) reported fiscal 2020 profit before tax of £40.9 million compared to £27.8 million in fiscal 2019. Earnings for the year rose to 32.76p per share from 30.07p per share in the previous year.
Underlying operating profit was £128.3 million versus £127.4 million a year ago. Underlying earnings increased to 92.19p per share from the previous year’s 90.01p per share, reflecting the profit growth from the existing and acquired businesses.
Operating profit was £52.2 million compared to £39.0 million last year.
Further, the company also proposed a final dividend of 24.00 pence per share, bringing the total dividend for the financial year ended 30 June 2020 to 34.29 pence per share, representing 8.5% growth over the previous year.
Future Plc Issues Full Year Trading Update – Quick Facts
Future plc (FUTR.L) said the Group now expects full-year adjusted operating profit to be materially ahead of current market expectations. The Group said it continues to benefit from the trend in a shift to digital media. In August, organic unique visitors in the UK and US were up 25% and 40% respectively from prior year.
Future plc said the integration of TI Media remains on track and the Group continues to make good progress. It now projects cost synergies of 20 million pounds per annum by the end of fiscal 2021, ahead of earlier forecasts of 15 million pounds per annum.
The Group expects to publish its full-year results for the year ending 30 September 2020 on 2 December 2020.
Associated British Foods Sees FY20 Adj. Earnings Significantly Below Last Year
Associated British Foods Plc (ASBFY.PK,ABF.L) said it expects adjusted earnings per share for the 52 weeks to 12 September 2020 to be significantly below last year as a result of the decline in Primark’s profit due to the store closures and the ongoing impacts on customer demand caused by COVID-19.
Associated British Foods now expects adjusted operating profit for Primark on an IFRS16 basis, excluding exceptional charges, to be at least at the top end of the 300-350 million pounds range previously advised. The Group said trading in the fourth quarter in both food businesses and Primark exceeded its expectations.
The Group will announce results for the 52 weeks to 12 September 2020 on 3 November 2020.