Markets Overview:

UK 100 called to open +20 points this morning at 6227.  UK 100 called to open higher today as traders find themselves caught between the latest escalation of tensions between the Trump administration and China, and hopes that a coronavirus vaccine could be around the corner. Yesterday's session in the US saw the Dow Jones rally more than 150 points to trade above 27,000 once again for a third straight green day.  The S&P 500 rose 0.6% to 3,276.84, posting a four-day winning streak, and the Nasdaq advanced 0.2% to 10,706.13. The S&P 500 also traded at its highest level in five months.  Positive sentiment was driven by news that The U.S. has agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccines if it proves to be safe and effective.  After the bell all eyes were on Tesla's results.  They delivered a fourth straight quarter profit and a first annual profit ever, as well and pledging to build their new factory in Austin Texas, creating thousands of jobs.  Brent crude trades at $44.41 per barrel, up 0.2%, while gold changes hands this morning at $1,869 per ounce, down 0.02%.

Company News:

Antofagasta has decided to extend government-mediated talks for a new union contract and to avoid a strike at its Zaldivar mine.

Carnival has said it will extend the suspension of select voyages through to December 15th 2020, as it looks to contain the spread of the novel coronavirus.

Croda maintains 2020 interim dividend, (totalling 39.5p) whilst pre-tax profit fell 12.8% to £144.9m. Following a challenging Q2, trading has stabilised but visibility is limited and timing of recovery remains unclear.

G4S beats profit estimates as H1 2020 operating profit beat market expectations (£187m v £159m expected) after getting a boost from a solid performance in its core security business, but said it would still hold off on resuming dividends.

Petropavlovsk H1 gold production increased by 42% y/y to 320.6 koz (H1 2019: 225.0 koz).

Polymetal reports revenue for Q2 2020 increased by 30% y-o-y to reach $641m.

Sage Group says recurring revenue for 9 months increased by 9% to £1,247m. This was driven by business in North America and Northern Europe. They expect their organic operating margin to be around 22% for the current financial year.

Unilever sales fall less than expected as U.S. outperforms. Underlying sales fell 0.3% in the three months ended June 30th, compared with analysts mean forecast for a 4.3% drop. In the first half of the year, food service sales declined by nearly 40% and out of home ice cream by nearly 30%, whereas e-commerce sales leapt 49%.

Reporting Today:

Croda

Howden Joinary

Relx

Unilever

Petra Diamonds

Sage Group

Tate & Lyle

Reporting Thursday:

Centica

Vodafone

In Focus Today:

US - Initial Jobless Claims

Today's Ex Dividends:

UK 100:

Pennon Group

SSE

UK 250:

Cranswick

Bankers Investment Trust

Sequoia Economic Infastructure Inc Fund

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