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ABF - Associated British Foods News Story

1715p -36.5  -2.1%

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Consumer Defensives
Large Cap
Market Cap £13.87bn
Enterprise Value £16.71bn
Revenue £15.94bn
Position in Universe 73rd / 1806

Reuters Insider - Reuters Today: European stocks open higher; Primark owner ups guidance

Mon 7th September, 2020 9:40am
Click the following link to watch video:
Source: Reuters Insider

Description: European equities opened in the black on Monday, caught between
sky high valuations for some technology stocks and recent pledges of fiscal
and monetary stimulus. While AB Foods said profit at it's Primark retail chain
will come in at the top end of previous guidance.
Short Link:

Video Transcript:

Let’s start with oil markets, where the price of oil is trading at its
lowest level since July. This after Saudi Arabia cut prices to Asia. Brent
futures are around $42 while WTI at one point fell to as low as $38. Saudi
Arabia cut prices by the most since May as the world remains awash in crude
despite cuts by OPEC and partner countries. Turning to equity markets this
Monday, with markets globally caught between sky high valuations for some
companies and recent pledges of more central bank stimulus. Factors at play
this morning will be data showing China’s imports unexpectedly fell from
a year earlier. While German industrial output just out rose a much lower than
expected 1.2% in July, adding to a spate of data suggesting that
economy’s rebound from lockdown is slowing. Of main concern in recent
days has been a correction in so-called mega-cap tech stocks, driving the US
Nasdaq lower. Investors were more or less shocked by the news that this
year’s tech rally has been in part been fueled by the massive purchase of
stock options by Japan’s SoftBank. US markets are closed today for the
Labor Day holiday. British Prime Minister Boris Johnson will later today set
an October 15 deadline for trade talks the European Union. In comments
released by his office, Johnson will say that if no deal is agreed then both
sides should accept that and move on. While this morning the EU’s chief
Brexit negotiator Michel Barnier accused the UK of wanting the best of two
worlds. Talks are due to resume in London from this week, but they have
stalled over Britain's insistence that it have full autonomy over state aid
and its demands overfishing. British foreign Secretary Dominic Raab said this
week’s talks are the "moment of reckoning". 

This week, the negotiations will be really important. All the UK is asking for
is to be treated like any other country in free trade negotiations. No other
country would accept being bound by or controlled by the EU's rules or indeed
in their relations with any other country. Indeed, the EU wouldn't accept it
in relation to us. I think that's just straightforward point of principle. So,
we hope that the EU as a whole will really understand that this week is the
moment of reckoning, there is a deal to be done and we're only asking to be
treated just as the EU would expect. 

All the talk of a no-deal departure from the EU is affecting the British
Pound, which only a few days ago was nearer to $1.35. The UK reported a sharp
rise in COVID-19 cases on Sunday, with the nearly 3,000 cases the highest
since May. The trend in the daily number of cases has started to rise in
recent weeks, although the number of patients admitted to hospital and
fatalities have remained at low levels. Health Secretary Matt Hancock said
that although the majority were younger people, the increase was a worry for
the government. 

Well, we are concerned about this rise in cases - of course, we are - and it's
predominantly amongst younger people but of course, younger people could pass
on the disease to their grandparents and we do not want to see that. And we've
seen rising cases in other countries around the world, across Europe, often
first among younger people and then passing on to others and so it's so
important that everybody follows that social distancing.

And in company news, Associated British Foods expects full-year profit at its
Primark fashion chain to hit the top-end of previous guidance. It said since
reopening all its retail stores, trading in the current quarter ending
September has been strong. It also said trading in its food business has
exceeded expectations. I’m Craig Moseley and that is Reuters Today
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