(Alliance News) - Stock prices in London are seen opening lower on Monday amid signs of fresh coronavirus outbreaks around the world as economies re-emerge from lockdowns.
In early company news, warehouse property investor SEGRO sold an urban warehouse park in Austria for EUR65 million. Merchant bank Close Brothers appointed a new chief executive. Mother and baby products retailer Mothercare said it was making progress on its transformation plan.
IG futures indicate the FTSE 100 index is to open 45.50 points lower at 6,247.10. The blue-chip index closed up 68.53 points or 1.1% at 6,292.60 on Friday.
SEGRO said it has sold City Park Vienna, comprising a cross-dock warehouse, a recently developed urban warehouse park and development land, to Nuveen Real Estate for EUR65 million. SEGRO said the disposal successfully concludes its presence in Austria, in line with the company's strategy.
Cineworld Group said it has agreed with a group of private institutional investors the terms of a new USD250 million secured debt facility with a maturity of 2023. The company said the move further strengthens its balance sheet as cinemas begin to re-open around the world.
Close Brothers said Adrian Sainsbury has been promoted to succeed Preben Prebensen as chief executive. Sainsbury will take up the new position, and become an executive director, with effect from September 21. He has been managing director of Close Brothers' Banking division and a member of the group executive committee since November 2016, having joined Close Brothers in 2013 as CEO of the Commercial division.
Mothercare said it is making "significant progress" with its transformation plan with around two-thirds of global retail locations now open following lockdowns.
Mothercare said that in line with plans to recapitalise the business with the minimum possible further dilution for shareholders, it remains in discussions with a number of prospective new debt providers regarding entering into new facilities.
As at June 19, the total secured debt - including drawings on the retailer's GBP24 million revolving credit facility, other guarantees and letters of credit - was GBP18 million, and these liabilities remain secured over the group as a whole. Mothercare said it understands that there remains a further amount to be paid out from the administrators of Mothercare UK which is expected to reduce this secured debt further.
The troubled retailer said it is making good progress with the search for a new permanent CEO and is now at shortlist stage. Mothercare said Glyn Hughes, who has been acting as the interim CEO, has ruled himself out of the search, expressing his desire to step down to pursue other opportunities.
Global investor sentiment has been hit amid a worrying jump in fresh cases in several US states including California, Texas and Florida, while China, Australia and Japan are also battling new outbreaks. This comes after the World Health Organization last week warned of a "new and dangerous phase" of the pandemic, with people tiring of lockdowns despite the disease's accelerating spread.
In addition, fears of a second wave rose in Germany as experts estimated the reproduction number of the virus had more than doubled in two days to 2.88.
"European markets look set to open modestly lower with the focus here set to be on the rising infection rates here in Europe, as well as stateside, over concerns that the markets v-shaped recovery scenario could come unstuck," said CMC Markets analyst Michael Hewson.
The Japanese Nikkei 225 index closed down 0.2%. In China, the Shanghai Composite is up 0.9%, while the Hang Seng index in Hong Kong is down 0.8%.
China's top law-making body will meet again just one week after deliberating on the new national security law for Hong Kong and releasing key details of the draft bill on Saturday, state media reported. The National People's Congress Standing Committee will meet in Beijing for three days on 28 June, the state-run Xinhua news agency reported on Sunday.
Although the national security law does not appear on the schedule approved by NPCSC Chair Li Zhanshu, Hong Kong's sole NPCSC delegate Tam Yiu-chung said it would likely be discussed, the South China Morning Post reported.
The pound was quoted at USD1.2397 early Monday, up from USD1.2368 at the London equities close on Friday.
UK Prime Minister Boris Johnson will on Tuesday unveil his plan to reopen the hospitality sector from July 4, and announce the result of the review of the two-metre social-distancing rule.
Johnson will first meet with his most senior cabinet colleagues, Chief Scientific Adviser Patrick Vallance and Chief Medical Officer for England Chris Whitty to discuss the review and the next phase of the recovery road map on Monday.
Johnson will then consult his cabinet on Tuesday and outline the plans to parliament for pubs, restaurants, hotels and hairdressers.
The euro was quoted at USD1.1202, unchanged from USD1.1204. Against the yen, the dollar was quoted at JPY106.91 in London, also unchanged from JPY106.92 late Friday.
Brent oil was quoted at USD42.06 a barrel, up from USD41.20 at the close Friday. Gold was priced at USD1,752.06 an ounce, up from USD1,742.20.
The economic events calendar on Monday has eurozone consumer confidence data at 1500 BST.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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