(Alliance News) - Stock prices in London are seen opening lower on Monday following a sharp fall in US equity markets on Friday that has continued in Asia on Monday, as fears grow over a resurgence of coronavirus infections.
In early company news, oil and gas company Energean amended the terms for its acquisition of Italian utility Edison's exploration & production portfolio. Animal genetics firm Genus named its new chair, and drugmaker Invidior announced the departure of its chief executive.
IG futures indicate the FTSE 100 index is to open 18.20 points lower at 6,141.10. The blue-chip index closed up 12.16 points, or 0.2%, at 6,159.30 on Friday.
Energean said its acquisition of Edison's exploration & production portfolio now will exclude Edison's Norwegian subsidiary. The latest change to the deal follows the exclusion of Edison's Algerian asset.
The deal is now valued at USD284 million, as opposed to the original sum of USD750 million. It still includes Edison's UK portfolio, with a stake in Glengorm, the largest gas condensate discovery in the Central North Sea.
"We are pleased to have agreed revised terms for our acquisition of Edison E&P, which will now exclude the Algerian assets and Norwegian subsidiary, and for which we have agreed USD466 million of total reductions to the original consideration. I look forward to completing the transaction, which I believe represents excellent value for our shareholders and also enhances our material, gas-focused platform for value creation in the Eastern Mediterranean. Upon completion, our core focus, alongside the Karish project, will be integrating our teams and portfolios, which will further secure our long-term, resilient cash flow profile and option-rich portfolio," said Energean Chief Executive Mathios Rigas.
In addition, Energean cut its 2020 pro forma capital expenditure guidance to a range of USD760 million to USD780 million, from USD840 million previously. Pro forma production guidance for the year is 44,500 to 51,500 barrels of oil equivalent per day.
Rio Tinto said it has reached an agreement with the government of Mongolia on a new source of domestic power for its Oyu Tolgoi copper and gold mine.
Rio said the agreement paves the way for the government to fund and construct a state-owned power plant at Tavan Tolgoi. The miner also said the two sides would work towards finalising a power purchase agreement by the end of March 2021.
Genus said it has appointed Iain Ferguson as its chair-designate. Ferguson, currently the chair of housebuilder Crest Nicholson, will join the Genus board as a non-executive director on Wednesday. Ferguson will succeed Bob Lawson as chair at the company's annual general meeting in November.
Indivior said it has promoted Chief Financial & Operations Officer Mark Crossley to chief executive officer to replace Shaun Thaxter, who is stepping down. Crossley has been CFOO of Indivior since February 2017 and joined Indivior in 2012.
The drugmaker said Ryan Preblick, currently SVP of global financial planning & analysis commercial operations, has been appointed interim CFO.
"It has been an honour and a privilege to lead the development of Indivior as it focused on empowering individuals to overcome their addiction. We have truly been pioneers in developing new treatments and helping to change patients' lives. Indivior has a highly talented management and workforce. I am confident in their ability to deliver against its vision as I prepare for my next business challenge," Thaxter said.
In the US on Friday, Wall Street ended sharply lower, with the Dow Jones Industrial Average down 2.8%, S&P 500 down 2.4% and Nasdaq Composite down 2.6%.
The Japanese Nikkei 225 index closed down 2.0%. The Shanghai Composite is down 0.7%, while the Hang Seng index in Hong Kong is down 1.1%. The Shanghai market reopened on Monday after being closed on Thursday and Friday for the Dragon Boat Festival holiday.
"Markets in Asia have taken their cues from Friday's sharp fall in the US, the continued rise in infection rates over the weekend, and the rise in global deaths to over 500 million by trading lower, and this weakness is set to manifest itself into a similarly weaker open here in Europe this morning," said CMC Markets analyst Michael Hewson.
The pound was quoted at USD1.2380 early Monday, up from USD1.2326 at the London equities close on Friday.
The EU and the UK launch an intense five weeks of negotiations on a deal to define their post-Brexit relations on Monday, with London keen to wrap things up quickly.
The new round of talks in Brussels will be the first to be held face-to-face since the coronavirus shutdown combined with the two sides' entrenched positions to stall progress.
The meetings will alternate weekly between Brussels and London throughout July and at the end of August, as the teams learned on Sunday, the British negotiator David Frost will be promoted to become Prime Minister Boris Johnson's national security adviser.
The euro was quoted at USD1.1248, up from USD1.1210 late Friday in London. Against the yen, the dollar was trading at JPY107.12 in London, marginally lower than JPY107.21 on Friday.
Gold was quoted at USD1,773.84 an ounce, up from USD1,760.70 late Friday. The precious metal hit a high of USD1,775.67 overnight - its highest level since late 2012.
Brent oil was quoted at USD40.26 a barrel Monday morning, lower from USD40.70 late Friday.
The economic events calendar on Monday has Spain and Germany inflation readings at 0800 BST and 1300 BST, respectively.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Rio Tinto (RIO)
Genus (GNS)
Energean Oil & Gas (ENOG)
