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* European stocks fall for second straight session
* Centamin shares down 20% after production update
* Construction sector dips 2.3%
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WHEN WILL UK DIVIDENDS BOUNCE BACK TO PRE-PANDEMIC LEVELS? (0900 GMT)
It's anyone's guess!
Link Group says the best case scenario is a recovery to 2012-13 levels in 2021.
UK dividends have recovered a tad from the depths of last quarter but they still had the
lowest third quarter in ten years, leaving investors eager to find out how much they will wait
to see payouts levels bouncing back.
Underlying dividends, which exclude special payments, fell 45.1% to £17.7bn in Q3, according
to Link Group.
"Though by any normal standards a fall of this magnitude is terrible for investors, it is
significantly better than the 57.2% drop in the second quarter," it says.
Link Group adds that investors will likely only see dividends recovering by March 2021 and
it pencils in a best-case increase of 15% and a worst case of 6% for next year.
"The fourth quarter this year and the first quarter next are set for further sharp declines,
but from April onwards, the anniversary of the lockdown, the comparisons will start to look more
favourable and we expect to see a bounce-back begin".
(Joice Alves)
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EUROPEAN STOCKS HEAD LOWER (0800 GMT)
European stocks dipped for the second straight day dragged down by construction, healthcare
and oil outweighing a decent batch of better-than-expected Q3 results.
The STOXX 600 is down 0.6%, with the construction sector leading the losses.
In terms of single stocks, Shares in Ericsson are up 7%, after quarterly core
earnings beat market estimates and the company says it is "more confident" in meeting its 2020
targets.
Mining company Centamin's shares fell to the bottom of the pan European index, down
18% after the company’s production update.
Shares in Iberdrola are down 0.6%, after the company issued results and announced
its U.S. unit Avangrid agreed to buy U.S. utility PNM Resources for around $4.3
billion.
(Stefano Rebaudo and Joice Alves)
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ON THE RADAR: IBERDROLA UNIT MERGER, AKZO NOBEL, ERICSSON (0639 GMT)
European stocks are poised to open higher, with sentiment boosted by hopes for a U.S. rescue
package and better-than-feared earnings results.
While concerns about the pandemic in Europe continue to weigh, we have a decent batch of
corporate news to cheer up investors, starting with a multi-billion cross border merger in the
renewable energy sector. Avangrid, the U.S. unit of Iberdrola, has agreed to
buy U.S. utility PNM Resources for around $4.3 billion. The merged company would have
assets worth $40 billion and generate core earnings of around $2.5 billion and net profit of
$850 million.
Akzo Nobel reports a better-than-expected 18% increase in third-quarter core
profit to 353 million euros.
Nestle stocks are up 2.7% in premarket trade after the company beats Q3 sales
expectations and raises its guidance for 2020.
Ericsson quarterly core earnings beat market estimates, helped by higher margins
and China's 5G rollout, and is "more confident" in meeting its 2020 targets.
Good news also on the vaccine front as AstraZeneca Plc's trial in the United States
is expected to resume as early as this week after the U.S. Food and Drug Administration
completed its review of a serious illness in a study participant.
But we still see pressure on the financial sector. Shares in GAM Holding are down
2.2% in premarket trade after results., while Handelsbanken reports
lower-than-expected quarterly net earnings due to restructuring costs.
Vinci expects earnings to continue falling in the second half of the year, as
weakness at its pandemic-ravaged airports business outweighs signs of a recovery in construction
and motorway traffic.
GlaxoSmithKline would move its experimental vaccine against the respiratory
syncytial virus (RSV), a cause of pneumonia in toddlers and the elderly, into the final stage of
testing, encouraged by mid-stage trial results.
Shares in Bilfinger are up 7.2% after press reports on possible takeover of the
company.
(Stefano Rebaudo)
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EUROPE CAUTIOUSLY IN THE BLACK (0528 GMT)
European stock futures are in the black along with their U.S. peers as hopes of a quick
approval of a U.S. stimulus package are propping up risk sentiment.
But investors continue to be cautious as coronavirus trajectories as well as possible new
restrictive measures are now seen as the single biggest near-term risk to the economic recovery.
Italy, Spain and Britain are considering new restrictions, including curfew in hard-hit
regions, to limit the spread of the pandemic. The latest curbs in Ireland will see GDP fall by
3.5% this year, Finance Minister Paschal Donohoe said.
(Stefano Rebaudo)
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