Last checked at 
(Alliance News) - Stock in London are set to open in negative territory on Wednesday, following a lower close in the US overnight, with traders focusing on UK Chancellor Rishi Sunak speech scheduled later in the day.
On the corporate front, transport company FirstGroup reported a widened loss in its most recently ended financial year amid additional charges, while clothing retailer boohoo launched an independent review of its UK supply chain.
IG says futures indicate the FTSE 100 index of large-caps to open 44.60 points lower at 6,145.30 on Wednesday. The blue-chip index closed down 96.04 points, or 1.5%, at 6,189.90 on Tuesday.
"Stock markets in Europe lost ground yesterday as traders were quick to book their profits from the impressive gains that were racked up on Monday," said CMC Markets UK analyst David Madden. "Yesterday's move was more about a correction rather than a sharp change in outlook."
The economic events calendar on Wednesday has summer economic update from UK Chancellor Rishi Sunak at 1230 BST and US consumer credit at 2000 BST.
"Rishi Sunak, the chancellor of the Exchequer, will be in focus today as he is tipped to unveil various schemes that are aimed at aiding the economy. Some of the programmes have already been announced," added Madden.
Homeowners will receive GBP2 billion in financial incentives to insulate their homes as part of an economic recovery scheme set to be announced by the Chancellor.
The funding is part of an expected GBP3 billion green package Rishi Sunak will unveil on Wednesday to create jobs, upgrade buildings and protect the environment as part of efforts to rebuild the economy after Covid-19.
The scheme will also include a GBP1 billion programme to transform schools, hospitals and other public buildings so they are greener and more energy efficient.
In early company news, drugmaker AstraZeneca said Lynparza has been approved in the EU for patients with germline BRCA-mutated metastatic pancreatic cancer.
The approval was based on results from the phase III Polo trial.
"Today's approval opens the door to a new era of biomarker-led care for patients with metastatic pancreatic cancer in the EU, which has the highest incidence of any region globally," said Hedy Kindler, co-principal investigator of the POLO trial.
Real estate investment trust SEGRO updated the market on rental collections from its UK portfolio associated with the UK quarterly payment date of June 24, saying that 93% of the GBP37 million of rent due was received.
The company noted that GBP9 million of rent ordinarily due on the UK quarterly payment date has been re-profiled, mostly to be paid in the second half of 2020.
Turning to FTSE 250-listed, Aberdeen, Scotland-based transport company FirstGroup reported widened a pretax loss of GBP299.6 million for the year to the end of March compared with GBP97.9 million loss a year ago.
FirstGroup explained that the loss reflects charges relating to the North American self-insurance provision, Greyhound impairment charges, restructuring and reorganisation costs and coronavirus-related charges.
Trading trends prior to the pandemic were broadly similar throughout the year, the company noted, with industry cost pressures offset by revenue growth in First Student, First Transit and First Bus and management actions.
Annual revenue, meanwhile, grew to GBP7.75 billion from GBP7.13 billion year-on-year.
FirstGroup is not proposing to pay a dividend for financial 2020, but said it will continue to review the appropriate timing for restarting dividend payments.
Property investment company CLS Holdings said vacancy rates have increased from the end of December 2019 levels due to refurbishments, acquired vacancy in the UK and some recent lease expiries across the portfolio.
Since April 8, there have been 25 deals securing GBP3.2 million of annual rent, CLS said.
The company said its balance sheet remains well-capitalised and robust. As at the end of June, CLS had cash of over GBP190 million, with a further GBP50 million in undrawn facilities.
Lancashire, England-based Victrex said it had a solid start but weaker end to its third quarter as Covid-19 headwinds hurt performance.
The polymer solutions provider reported a 12% drop in sales volume for the three months to the end of June to 805 tonnes, with revenue down 18% to GBP58.8 million, reflecting mix as a key driver.
On a year-to-date basis, Victrex sales volume of 2,797 tonnes was broadly in line with the prior year's 2,811 tonnes. Year-to-date revenue stands at GBP210.3 million, down 3% compared to GBP217.8 million a year prior.
Looking ahead, Victrex said with lower production levels and a weak product mix will hurt margins in the second half and in financial 2021.
Elsewhere, boohoo said it is launching an immediate independent review of its UK supply chain, led by Alison Levitt QC. The fashion retailer said it is also accelerating its independent third party supply chain review with ethical audit and compliance specialists Verisio and Bureau Veritas.
In addition, boohoo said it will be making an initial commitment to invest an incremental GBP10 million to eradicate supply chain malpractice.
The move comes after Next and ASOS have dropped boohoo clothing from their websites after claims that the fast-fashion retailer sold clothes made in factories where staff were paid less than the minimum wage and worked in poor conditions.
boohoo has had more than GBP1 billion wiped from its share value in the past two days after an article in the Sunday Times newspaper alleged that workers in a Leicester factory making clothes destined for boohoo were being paid as little as GBP3.50 an hour.
In New York on Tuesday, the Dow Jones Industrial Average ended down 1.5%, the S&P 500 down 1.1%, and the Nasdaq Composite down 0.9%.
US President Donald Trump has formally started the withdrawal of the US from the World Health Organization, making good on threats over the UN body's response to the coronavirus, officials said Tuesday.
The US is the largest financial contributor to the WHO – which leads the fight on global maladies from polio to measles to mental health – but it has increasingly been in Trump's crosshairs as the coronavirus takes a heavy toll.
After threatening to suspend the USD400 million in annual US contributions and then announcing a withdrawal, Trump has formally informed UN Secretary-General Antonio Guterres that he has started the US pullout, a State Department spokesperson said.
The withdrawal is effective in one year – July 6, 2021 – and Joe Biden, Trump's presumptive Democratic opponent, is virtually certain to stop it and stay in the WHO if he defeats Trump in the November election.
The US, the country hardest hit by the coronavirus, on Tuesday posted 60,209 new cases, a record for a 24-hour period, according to a tally from Johns Hopkins University.
In Asia on Wednesday, Nikkei 225 index in Tokyo closed down 0.8%. In China, the Shanghai Composite is up 1.8%, while the Hang Seng index in Hong Kong is up 0.3%.
China opened a new office on Wednesday for its intelligence agents to operate openly in Hong Kong for the first time under a tough new security law, in a public display of its tightening control over the finance hub.
The new base is located in a rapidly-converted hotel overlooking the city's Victoria Park, a location that has hosted pro-democracy protests for years, including an annual vigil marking Beijing's deadly Tiananmen crackdown.
Against the yen, the dollar was quoted at JPY107.55, broadly flat from JPY107.52 at the close on Tuesday.
The euro traded at USD1.1274 early Wednesday, down from USD1.1297 late Tuesday.
Sterling was quoted at USD1.2552 early Wednesday, softer than USD1.2586 at the London equities close on Tuesday.
Gold was priced at USD1,794.40 an ounce early Wednesday, higher than USD1,793.61 on Tuesday. Brent oil was trading at USD42.86 a barrel, lower than USD43.26.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
