Reuters Insider - UK Day Ahead: TUI, National Express to outline hit from Covid-19
12/08/2020 15:35
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_fqia3e75&referenceId=1_fqia3e75&pageId=ReutersNews Source: Reuters Insider Description: The FTSE 100 and mid-cap FTSE 250 are higher in the afternoon, despite data showing UK GDP dropped 20% in the second quarter. Instead investors looked to better-than-expected GDP data for the month of June for signs that the UK recovery is gaining momentum. On Thursday, RICS updates on the housing market, while travel company TUI will lay bare the damage cause by Covid-19 in the first six months of the year. Short Link: https://refini.tv/2E1bEZ1 Video Transcript: Good afternoon. I'm Matt Gooderick, and this is your insight into Thursday. First though, our top story today. And the British Finance Minister Rishi Sunak has warned that many more people may lose their jobs in the coming months. His comments come as the release of official data this morning shows the UK economy shrank a record 20% in the second quarter of the year. When we were talking about it a few months ago, I said that hard times were coming. And today's figures show that hard times are here. Hundreds of thousands of people have already lost their jobs and sadly many more will. But I will say to people, although tough decisions lie ahead for all of us, no one will be left without hope or opportunity. Let's turn to European equity markets in the afternoon session then. And London's FTSE saw gains despite the quarterly GDP numbers. Investors focused instead on a better than expected recovery in June over May in the economy. Rising oil prices continue to support energy-related stocks. Added to that, M&A fever gripped telecom stocks after Liberty Global launched a $7 billion takeover of Switzerland's Sunrise Communications, boosting its shares and those of its largest shareholder, Germany's Freenet, although some German stocks dipped after sharp gains over the past few days. Right, let's take a look at the corporate calendar on Thursday then. And Europe's biggest holiday company, TUI, will update on its financial position following three months when lockdowns halted travel and as new restrictions threaten the nascent recovery and force it to cancel more trips. The Anglo-Germany multinational announced two weeks ago it will shut 166 stores in the UK and Ireland in response to the downturn in travel. British bus operator, National Express, will have taken a big hit from the coronavirus crisis as lockdowns halted travel for months and recovery remains slow. The UK government's lifeline to the industry stretches until October, and investors will be keen to know its plans after that. Ailing conglomerate, ThyssenKrupp, will possibly release a third quarter operating loss of about EUR1 billion, reflecting the impact from the coronavirus crisis on its business. Investors will above all focus on how the group intends to use the proceeds from the sale of its elevator division. In addition to TUI, National Express, and ThyssenKrupp, other corporates reporting will include Europe's third largest renewables company RWE, Deutsch Telekom, and also British insurer Just Group. Meanwhile, on the economic calendar, the Royal Institution of Chartered Surveyors monthly survey of its members is forecast to show an improvement over July. That's when it reported that buyers had returned to the market, but that activity remained depressed. And that is your look at the day ahead. I'm Matt Gooderick, and this is Reuters