(Alliance News) - Stock prices in London are seen opening slightly higher on Monday, amid more weakness in the pound and continued concern about the US-China trade war.Last week, US President Donald Trump said he was prepared to walk away from next month's planned talks with China.In early UK company news, embattled travel company Thomas Cook said it was in advanced talks for a further cash injection, while shipping company Clarkson reported robust interim results. IG futures indicate the FTSE 100 index is to open 31.75 points, 0.4%, higher at 7,285.60. The blue-chip index closed 0.4% lower at 7,253.85 on Friday.In China, the Shanghai Composite was up 1.1%, while the Hang Seng index in Hong Kong was down 0.1%. Markets in Tokyo are closed for the Mountain Day holiday.The pound was quoted at USD1.2033 early Monday, lower than USD1.2081 late Friday.Troubled travel operator Thomas Cook said it has made substantial progress on its proposed recapitalisation with shareholder Fosun Tourism Group and several noteholders. Last month, Thomas Cook said it was in talks with Chinese shareholder Fosun Tourism Group, already the firm's largest shareholder with 18%, for a GBP750 million cash injection.The investment would see a reorganisation of the Tour Operator and Airline businesses, leading to Fosun having a "significant" minority interest in the airline. On Monday, Thomas Cook said discussions with noteholders included the injection of an additional GBP150 million, on top of the previously announced GBP750 million. The company said the extra capital would provide "further liquidity headroom" through the 2019-20 winter period - a low cash time for holiday operators - and ensure the company can continue to invest.Thomas Cook said it will implement the recapitalisation in early October, and this will require a reorganisation of the ownership of its Tour Operator and Airline businesses. This means a significant amount of the company's external bank debt of GBP650 million and bond debt EUR1.15 billion would be converted into equity, resulting in a "substantial deleveraging of the group".Thomas Cook, therefore, expects existing shareholders to be "significantly diluted" as part of the recapitalisation. However, the company said the shareholders may be given the opportunity to participate in the recapitalisation on terms to be agreed among other investors, Fosun, and the converting financial creditors.Shipping services provider Clarkson said it delivered a "robust first half performance", despite challenges in shipping, offshore and capital markets.For the six months to June 30, revenue rose 10% to GBP167.8 million from GBP152.6 million last year and pretax profit increased 6.7% to GBP19.2 million from GBP18.0 million. Clarkson declared an interim dividend of 25 pence, up 4.2% from 24p last year. "As in previous years, our business remains second half weighted, and we anticipate that the upcoming introduction of International Maritime Organization sulphur cap in 2020 will cause market disruption supporting higher freight rates as the supply of available vessels is impacted. This, and a broader re-balancing of supply and demand dynamics, means we remain confident in the outlook for Clarksons and the shipping markets, both in the coming months and longer-term," said Chief Executive Andi Case. Sterling is trading around levels not seen since the start of 2017, amid fears the UK will leave the EU without a divorce deal.UK shops suffered the biggest July footfall drop since 2012, the latest British Retail Consortium-Springboard Footfall & Vacancies Monitor showed on Monday.Overall footfall in the UK was down 1.9% year-on-year in July, compared to a less steep drop of 0.9% in the same month a year ago. The latest reading marked the worst decline for the month of July since 2012.High Street footfall slumped 2.7%, compared to the 0.3% rise recorded a year ago. Meanwhile, shopping centre footfall was down 3.1%, following the 3.4% slide seen a year ago. Retail Park footfall increased by 1.2%, however, after a 0.5% fall a year ago.
Clarkson (CKN)
