- FTSE 100 closes 8 points lower
- Only Nasdaq holds gains, Dow Jones and S&P 500 lower
- Lloyds weak as JP Morgan downgrades
4.45pm: FTSE 100 flat
At the close, the FTSE 100 had staged somewhat of a recovery from earlier in the day to close at 7,454 points.
Stocks stayed quiet despite the abortive Russian rebellion, IG's Chris Beauchamp noted.
“An armed rebellion in a G20 state has failed to move markets in any meaningful way, not least because the rebellion itself barely lasted half the weekend," Beauchamp wrote.
"While it leaves open the possibility of more disruption, the net effect on markets so far has been limited to say the least. The selling seen on Friday has not had much follow-through, and Q2 may well end on a subdued note despite renewed inflation worries."
3.50pm: Crude unfazed
Oil prices were higher on Monday afternoon unfazed by the aborted revolt of mercenaries in Russia over the weekend which is not seen as posing an immediate threat to oil supply from one of the world's largest producers.
UK Brent crude was up 1.3% at US$74.49 a barrel, while US West Texas Intermediate crude (WTI) was ahead 0.2% at $69.26 a barrel. Both Brent and WTI prices fell by about 3.5% last week on worries that further interest rate hikes by the Federal Reserve could impact oil demand at a time when China's economic recovery has also stalled.
A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern Russian city of Rostov under a deal that halted their rapid advance on the capital.
The challenge, however, raised questions about Russian president Vladimir Putin's grip on power and added some concern about possible disruption of Russian oil supply.
Goldman Sachs analysts said markets could price in a moderately higher probability of domestic volatility in Russia leading to supply disruptions, but added that the impact could be limited because spot fundamentals have not changed.
3.30pm: Dollar weakness to continue
On the foreign exchanges, Sterling remained above the $1.27 level against the US dollar which has is good news for tourists but not so for the dollar-earning components of the FTSE 100 index.
Daniel Casali, chief investment strategist at wealth manager Evelyn Partners, noted that the weakening of the US dollar has been a feature of financial markets since October 2022 and has been generally positive overall for stocks, by creating additional market liquidity that has supported prices.
He pointed out: “There are a number of short-term factors that have created downward pressure on the US dollar. It gained significant ground during the pandemic as investors sought a safe haven, pushing its valuation (relative to other currencies) to a 20-year high. Until last autumn this strength continued, fuelled by widespread risk aversion and fears over recession. This left it looking expensive and due for a reset.
“An improvement in the economic outlook has brought about that change. The US dollar is a counter-cyclical currency – strengthens in times of risk aversion and generally weakens at times of improving economic growth. There has been a stronger global recovery than expected, with Europe avoiding an energy crisis, China re-opening and the remarkably resilient US consumer. This has improved investor sentiment and the risk aversion, which characterised 2022, has been reversed, which is bad news for the ‘safe haven’ dollar.
“There has also been a narrowing in interest-rate differentials. The Federal Reserve had been aggressive in raising interest rates, but other countries are catching up as the US pauses. The US Central Bank may continue to signal further interest-rate rises, but we believe it is edging closer to the peak.”
Casali said: “The US dollar has also responded to the adjustment in the balance of world economic growth. While the US led the global economy as it emerged from the pandemic, more recently growth in the rest of the world has started to pick up and challenge, or even outpace, that of the US.“
He added: “The longer-term picture (i.e. over the next 10 years) for the US dollar is more complex. There are challenges to the dollar’s position as the world’s reserve currency. China is snapping at the US’s heels as the largest and most powerful economy in the world.
“The US dollar does look unattractive in its valuation compared to other major currencies. On a fair value basis going back over 40 years, sterling looks extremely cheap compared to the US dollar. There is room for sterling to appreciate against the dollar in the long term.”
But Casali concluded: “Whilst there are clearly near-term and long-term pressures on the US dollar, we do not think this means it will lose its role as a reserve currency.”
“Our view is that over the next year, the US dollar will continue to depreciate as its recent run of strength and over-valuation unwinds. The dollar retains its reserve currency status but falls in value,” he said.
3.05pm: Shopping spree
Frasers Group has increased its shareholding in electrical retailer AO World for a third time to around 22.2% and has also raised its stake in rival Currys.
Earlier this month, Mike Ashley’s company, which owns Sports Direct and House of Fraser, acquired just under 19% of AO World shares that had been held by scandal-hit hedge fund Odey Asset Management for £75mln.
A few days later, Frasers Group increased its holding in AO to 21.3%.
The stake in Curry's, first acquired last week, was increased to 10.39% from a previous level of 9.39%.
Frasers shares added 0.4% at 686p, while AO shares rose 2.3% to 86.30, but Curry’s stock was down 0.8% at 53.03p in afternoon trading.
2.40pm: First half drawing to a close
The FTSE 100 remained weaker but well off lows in midafternoon trading as US stocks started the final week of June, and the first half of 2023, cautiously higher.
Around 10 minutes after the New York open, the Dow Jones Industrial Average was up 10 points, or 0.1% at 33,737, while the S&P 500 and the Nasdaq Composite also both added 0.1%.
“Stocks are pointing to a muted open as investors weigh up the abolished mutiny in Russia over the weekend and look ahead to inflation data at the end of this week,” said FOREX.com market analyst Fiona Cincotta.
Among stocks in New York, Tesla shares were down about 1.5% at the open after the stock was downgraded from ‘Buy’ to ‘Neutral’ by Goldman Sachs analysts.
Alphabet stock also slipped 1.2% after it was downgraded from ‘Neutral’ to ‘Buy’ by USB analysts who said they see limited upside and monetization risk.
Electric vehicle manufacturer Lucid, on the other hand, was up 9.3% on the news it has entered into a long-term strategic partnership with British car brand Aston Martin.
2.20pm: HGV engineers needed
Supermarket shelves could be left empty as a shortage of HGV engineers could weaken supply chains in the UK, industry leaders have warned.
Huge investments in the logistics industry have been made over the last few years to combat a drain on HGV drivers post-pandemic.
Companies increased driver salaries and signing-on bonuses to entice new workers, meaning many lorry engineers switched to driving roles.
Over 54% of freight transport companies reported a “severe” problem when trying to hire fitters, mechanics and technicians, according to a survey by industry organisation Logistics UK.
Only 35% of respondents expressed the same level of concern a year prior.
2.10pm: Some of the top risers and fallers on the junior market
Creo Medical Group PLC (AIM:CREO) shares rose after the company announced that its Speedboat Inject device was used for the first time in Europe to carry out an upper gastrointestinal (GI) procedure. Creo was trading slightly lower at 35.65p in mid-afternoon trades.
Cake Box Holdings PLC (AIM:CBOX) shares gained as the specialist retailer of fresh cream cakes reported steady progress in full-year results for the 12 months ended 31 March 2023.
IOG PLC (AIM:IOG) shares skyrocketed after the AIM-listed gas firm laid out plans to maximise cash flow by cancelling North Sea drilling and producing solely from its Blythe hydrogen well.
Wildcat Petroleum (LSE:WCAT) shares jumped by 47% on the signing of a Memorandum of Understanding (MOU) with a third party on deals from Sudan.
Microsaic Systems PLC (AIM:MSYS) slumped 56% as it warned it will need to raise extra funds following the gloomy update from Deepverge, a partner and customer.
Braemar PLC (LSE:BMS, OTC:BSEAF), the shipping broker, sunk almost 20% as delays to its full-year results could mean shares in the group cop a suspension.
1.00pm: US futures point to flat start in the US
US stocks are expected to tick lower in early trade on Monday as investors start the final week of June, and the first half of 2023, cautiously following last week's declines.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were flat, while those for the S&P 500 fell 0.1% and those for the Nasdaq 100 shed 0.2%.
After further falls on Friday, over the last week, the Nasdaq Composite fell 1.4%, breaking an eight-week win streak, while the S&P 500 shed 1.0%, ending a five-week streak, and the DJIA which has underperformed in 2023, shed 1.7% to end a three-week positive run.
For the first half of the year, however, the tech-heavy Nasdaq Composite is up nearly 29% year-to-date, and the S&P 500 is up more than 13%. although the DJIA is up less than 2%.
Traders will likely keep an eye on the situation in Russia which saw a brief rebellion by a private military group over the weekend, and uncertainty about the situation there will likely keep the markets cautious overall.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank commented: "The weekend was eventful with the unexpected rebellion of the Wagner Group against the Kremlin. Yevgeny Prigozhin’s men, who fight for Putin in the deadliest battles in Ukraine walked towards Moscow this weekend as Prigozhin accused the Kremlin of not providing enough arms to his troops.
"But suddenly, Prigozhin called off the attack following an agreement brokered by Belarus and agreed to go into exile. The Kremlin took back control of the situation, but we haven’t seen Vladimir Putin, or Prigozhin talk since then. The Wagner incident may have exposed Putin’s weakness, and was the most serious threat to his rule in two decades. It could be a turning point in the war in Ukraine. But nothing is more unsure. According to Volodymyr Zelensky, there are no indications that Wagner fighters are retreating from the battlefield."
She added: "The Wagner incident will likely remain broadly ignored by investors, unless there are fresh developments that could change the course of the war in Ukraine. Until then, markets will be back to business as usual. There is nothing much on today’s economic calendar, but the rest of the week will be busy with a series of inflation reports from Canada, Australia, Europe, the US, and Japan."
There are few corporate earnings due in this final week of the month, with the highlights being Walgreens Boots Alliance earnings on Tuesday and those for Nike on Thursday.
12.41pm: FTSE 100 rallies, car insurers firm as prices rise
The FTSE 100 has completed its recovery from a weak start to trade 1 point to the good at 7,463 after earlier trading as low as 7,401.
Food and general retailers lead the way with gains in Tesco, Sainsbury, Next and B&M European Value Retail.
Admiral Group is another share on the rise, up 0.8%, while Direct Line Insurance Group PLC is also 1.4% to the good.
Data from the Office for National Statistics has showed the price of car insurance up 43.1% in the last 12 months.
Industry figures suggest more muted growth. The average price paid for motor insurance in the first three months of 2023 was £478, up 16% higher than in 2022, according to the Association of British Insurers quarterly motor insurance premium tracker.
The gap reflects a difference in how the ONS and ABI track figures. The ONS collects quotes while the ABI looks at the prices people actually pay.
12.28pm: GDP and inflation figures to provide food for thought
Plenty for the data-driven central banks to digest this week. Final readings of first quarter economic growth in the UK and US, the Fed’s preferred inflation gauge and another health check of the UK housing market will provide the focus for investors.
The UK economy eked out quarter one growth of 0.1% in interim figures weighed down by the impact of strike action. Consensus is for this figure to remain unchanged.
Michael Hewson at CMC Markets suggests there “is a risk that this modest expansion could get revised away, however recent PMI numbers have shown that, despite rising costs, business is holding up, even if economic confidence remains quite fragile.”
Across the pond, economic growth could be revised upwards to 1.4% for the quarter from 1.3% before.
“We’re not expecting to see much of a change in this week’s revisions, although headline might get revised to 1.4%, while most of the attention will be on the core PCE number for evidence of any downward revisions, as more data gets added to the wider numbers,” Hewson said.
The PCE numbers, the Federal Reserve’s favoured measure of inflation, take on added importance as the US central bank weighs up whether rates need to rise further after this month’s pause.
ING Economics said: “Unfortunately, we don’t expect to see any real slowdown and the pricing for a July hike is likely to build.”
The core figure is expected to show monthly growth of 0.4% in May, with the annual rate remaining unchanged at 4.7%, after it rose unexpectedly in April.
Back in the UK, and the hot topic of the moment remains the UK housing market and the impact of soaring interest rates on borrowing costs.
Demand for mortgages has slowly picked up after hitting a low back in January but rising rates and concerns over the state of the UK economy could put paid to any further recovery.
Mortgage approvals are expected to be flat in May when compared to April’s 48,700.
Separately, Zoopla will release its monthly report on the housing market.
12.15pm: German business confidence slides
The German economy remains under pressure, according to a closely-watched indicator of business activity.
The Ifo business climate index fell to 88.5 in June following May’s reading of 91.5.
The decline, was led by a “substantial” decline in manufacturing, and was the lowest reading since November 2022, and well below analysts’ expectations for a fall to 90.7.
All sectors of the German economy suffered a decline, according to the survey, which noted that in manufacturing “the business climate deteriorated substantially”.
It added: “Hardly any industry has been left untouched by this development.”
Carsten Brzeski at ING said the “collapse” in activity suggested “the rebound of the German economy has ended before it ever really began”.
He added: “The weaker-than-hoped-for Chinese reopening, a looming US recession and ongoing monetary policy tightening seem to be weighing on German company sentiment. “
“Also, the growing feeling that Germany is in for a longer period of subdued growth seems to have reached German business.”
11.33am: Retail sales fall again in June - CBI
British retail sales fell again in June as household finances were squeezed by the rising cost of living but stores expected sales volumes to stabilise next month, a survey showed on Monday.
The Confederation of British Industry's (CBI) monthly distributive trades index was negative 9 in June compared to negative 10 in May.
Martin Sartorius, CBI principal economist, said retailers would continue to face challenges in the coming months.
"Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Households' finances are still under pressure from high inflation," Sartorius said.
Our latest economic forecast tells a story of two halves: while the near-term outlook for UK growth has improved, this has done little to shift the dial on the longer-term challenges facing the economy. Here’s a thread of key messages from our forecast (1/11)
— CBI Economics (@CBI_Economics) June 12, 2023
A measure of expected sales in the month ahead remained flat at zero.
The FTSE 100 is now down 23 points at 7,439.
11.08am: BA owner's interest in TAP depends on privatisation terms
Portugal's state-owned airline TAP could be an acquisition opportunity for the Iberia and British Airways owner IAG, depending on conditions, IAG chief executive officer Luis Gallego said on Monday, according to Reuters.
"The TAP operation may make sense from a strategic point of view because of the Brazilian market, they are complementary... but we have to look at the other conditions under which it is privatised," Gallego said.
The Portuguese government in April mandated state holding company Parpublica to pick two independent assessors to value TAP ahead of its privatisation.
The comments followed similar remarks by Gallego in June,
“TAP may be an option, but first, we have to see under what conditions it will be privatised and if it makes sense for our network and customers" he said at the time.
10.35am: Lloyds dented by JP Morgan downgrade
Lloyds Banking Group PLC (LSE:LLOY) shares fell 2.4% as leading investment bank JP Morgan downgraded its rating and slashed its price target for the high street lender along with other UK banks.
The broker expects EPS cuts for the UK banks "to intensify with risks to capital return and asset quality," given the probability of a hard landing for the UK economy is now higher.
JPM has cut its "already below" consensus EPS forecasts by another 3-9% for financial years 2024 and 2025 - "now double digits below consensus."
It reckons UK rates will peak at 5.75% but thinks increased political pressure will mean the deposit pass-through is likely to be closer to 100% on interest-bearing time deposits, with negative implications for deposit migration and loan books.
JPM sees upside risk to near-term and 2023 net interest income but thinks this is likely to be close to peak levels with higher downside risk in the medium term from any hard landing that will eventually lead to lower normalised rates and net interest margins.
It also highlighted "increased political risks to earnings in the form of forbearance, pricing and windfall taxes, especially into 2024 with the election coming into view."
The broker downgraded Lloyds to underweight from neutral, preferring Barclays (overweight) and NatWest (neutral) among the UK lenders.
The price target for Lloyds moved to 42p from 56p, for Barclays to 180p from 210p and for NatWest to 260p from 320p.
Lloyds fell 2.4% to 41.30p, Barclays 1.7% to 142.83p and NatWest 1% to 227p.
10.04am: HSBC to ditch Canary Wharf for smaller office
HSBC Holdings PLC (LSE:HSBA) is set to move its global HQ from Canary Wharf to a smaller office in central London after its lease expires, according to reports.
The lender told staff the news in a memo, seen by various media outlets.
HSBC's preferred option is to move to Panorama Saint Paul’s in the City. It said it expected to relocate to its new office in late 2026. The building was formerly an office for telecoms group BT and was redeveloped by Orion Capital Managers.
HSBC said the move to a smaller office would help it meet net-zero commitments and allow for flexible working.
HSBC had up to 8,000 people working at its Canary Wharf base at its peak, but that number has dropped since it embraced hybrid working after the pandemic.
It is reducing office space globally by about 40% and told staff in September that it was ditching a quarter of the space it occupied at 8 Canada Square to reduce costs and cut energy use.
John Hinshaw, HSBC chief operating officer, told staff at the time that it wanted “to have an even more flexible and dynamic workspace that meets the needs of colleagues and clients."
9.40am: Mortgage rates keep heading skywards
Mortgage rates keep rising, hitting new seven-month highs, adding to the financial pressures on borrowers.
Financial data experts Moneyfacts report that the average 2-year fixed residential mortgage rate has edged higher to 6.23%, up from 6.19% on Friday, the highest level since the chaos in the wake of September’s mini-budget.
The average 5-year fixed residential mortgage rate has inched up to 5.86%, up from 5.83% on Friday, the highest since the end of November.
The higher rates come in the wake of the Bank of England’s increase in interest rates last Thursday, which lifted Bank Rate to a 15-year high of 5%.
Today’s 2-year tracker rate is 5.84%, Moneyfacts report, up from an average rate of 5.66% on Friday.
Sarah Coles, head of personal finance, Hargreaves Lansdown estimated: “More than one in six people will still be paying the mortgage after the age of 65, and recent hikes in mortgage rates could force more of them to extend the loan later into their 60s, with horrible implications for their finances.”
She thinks higher mortgage rates are likely to mean even more people paying their mortgage later in life.
9.16am: Vodafone deal faces scrutiny over links to China
Vodafone Group PLC (LSE:VOD)’s share price fell 1.3% after a report that its £18bn deal with Three is facing cross-party scrutiny in parliament over its links to China.
MPs from both the Conservatives and Labour have tabled questions to government departments about the impact on state contracts with Vodafone after a proposed merger with Three, owned by CK Hutchison, a Hong Kong-listed conglomerate, The Times reported.
Tory veteran, David Davis, has asked what assessment the government has made of the potential security and “other effects” of the merger on its contracts with Vodafone. For the opposition, Apsana Begum, a Labour MP, has also asked about the “potential security implications” of the merger.
The deal between Vodafone and Three has triggered an initial investigation by the Competition and Markets Authority and the merger is also subject to approval under the new National Security and Investment Act.
Unite, Britain’s largest trade union, is campaigning against the deal and has claimed it “will give a company with deep ties to the Chinese state an even more prominent place at the heart of the UK’s telecommunications infrastructure,” the report said.
Vodafone shares are 1.3% lower at 71.73p while the FTSE 100 has come off earlier lows to trade down 28 points at 7,434.
8.55am: FTSE extends falls, defence stocks weaken, banks dip
The FTSE 100 has slipped further into the red with jitters surrounding events in Russia over the weekend adding to investors concerns surrounding economic growth and rising interest rates.
The blue-chip index is now down 40 points at 7,422.
Jim Reid, strategist at Deutsche Bank, said: “It could increase the risk of escalation by Mr Putin to reinstate an air of authority, or it could leave him vulnerable which could be seen as positive or negative for Europe, Ukraine and wider markets.
It’s just impossible to tell at this stage.”
BAE Systems PLC (LSE:BA.) topped the FTSE 100 fallers, down 2.2%, as the probability of an earlier end to the war in Ukraine rose while banks were uniformly weak as they came under further pressure to act on mortgage and savings rates.
In Europe, Italian defence group Leonardo, Sweden’s Saab, Germany’s Rheinmetall and France’s Dassault Aviation were all down more than 3%.
Neil Wilson at markets.com said: “The aborted mutiny in Russia underscores weaknesses in the Putin regime and illustrates that there are probably a range of ways this conflict could end sooner than we had thought before.”
Banking stocks weakened. Barclays PLC (LSE:BARC) fell 2.1%, Lloyds Banking Group PLC (LSE:LLOY) dipped 1.8%, NatWest Group PLC (LSE:NWG) slipped 1.4% while Standard Chartered PLC (LSE:STAN) was 1.3% lower.
JP Morgan downgraded Lloyds to ‘underweight’ and cut its price target to 42p from 56p.
Meanwhile, consumer finance champion Martin Lewis called on the high street lenders to do more on narrowing the gap between mortgage rates and savings rates.
BT Group PLC (LSE:BT.A) was another share on the wane, down 1.1%, after it apologised for problems with the 999 emergency service over the weekend.
8.16am: FTSE 100 slips but Aston Martin powers ahead
The FTSE 100 edged lower in early exchanges as investors digest the dramatic events in Russia over the weekend while Aston Martin motored ahead after striking an EV deal.
At 8.15am, London’s lead index fell 15.75 points, or 0.2%, to 7,446.12 while the FTSE 250 was little changed at 18,065.30.
Strategists at Deutsche Bank said: “Markets will start the week trying to work out what to make of the volatile situation in Russia that saw a remarkable turn late Friday and into Saturday.”
“In truth perhaps the mutiny and then truce, all within 24-36 hours means more political instability longer-term than shorter-term,” Deutsche felt.
Brent crude rose around 0.5% to US$74.29/barrel.
Back on home shores and Aston Martin Lagonda Global Holdings PLC (LSE:AML) hit top gear after unveiling an electric vehicle deal with US firm, Lucid Group Inc (NASDAQ:LCID).
The high performance car manufacturer has joined forces with Lucid to enter a supply agreement to create “industry-leading ultra-luxury high performance electric vehicles.”
Aston will issue 28.4mln shares to Lucid and make cash payments of around £182mln. Lucid will hold a 3.7% stake in Aston.
Shares jumped 10.5%.
Associated British Foods PLC (LSE:ABF) were little changed despite raising profit guidance.
Operating profit should come in “moderately ahead of last year,” ABF said in a statement, up from previous guidance that the figure would be flat.
Earnings per share should “benefit” too from a lower-than-expected group effective tax rate, ABF added, after total group sales came in 16% higher year-on-year at £4.7bn in the third quarter.
Analysts at Shore Capital described the update as “pleasing,” and raised its EPS forecast by 6.5% to 140.3p.
“Following a pleasing update, we reiterate our buy stance on ABF equity, seeing scope for capital appreciation for underlying growth and rating expansion in forthcoming periods,” the broker said.
7.58am: AB Foods lifts profit guidance
Primark owner Associated British Foods PLC (LSE:ABF) has guided that full-year profits should be higher after reporting jumps in both food and retail sales during the third quarter.
Operating profit should come in “moderately ahead of last year,” ABF said in a statement, up from previous guidance that the figure would be flat.
Earnings per share should “benefit” too from a lower-than-expected group effective tax rate, ABF added, after total group sales came in 16% higher year-on-year at £4.7bn in the third quarter.
Retail sales grew 13% to just shy of £2bn in the 12 weeks to May, with Primark’s “summer ranges performing well” as warmer weather hit Europe.
7.56am: Cineworld to appoint administrator in the UK
Cineworld Group PLC (LSE:CINE) has announced plans to place itself into administration in the UK as it edges closer to exiting Chapter 11.
The process will only apply to Cineworld Group PLC (LSE:CINE) itself (as the listed parent company of the group) and not to any of the operating companies or subsidiaries in the rest of the firm, which will continue to operate as usual without interruption.
The embattled cinema chain said it plans, once administrators are appointed, to transfer the assets from Cineworld Group PLC (LSE:CINE) to its wholly owned subsidiary, Crown UK Holdco Limited, a newly incorporated company to be controlled by the group's lenders.
The plan is part of efforts to allow the business to emerge from Chapter 11 as a continued going concern. It will not achieve a rescue of Cineworld Group PLC (LSE:CINE) itself.
Shares in Cineworld will be suspended once an administrator has been appointed.
7.37am: Aston Martin's EV push
Aston Martin Lagonda Global Holdings PLC (LSE:AML) has unveiled a move into the electric vehicle market and extended its relationship with Mercedes in two
The up-market car manufacturer has joined forces with Lucid Group Inc (NASDAQ:LCID) to enter a supply agreement to create “industry-leading ultra-luxury high performance electric vehicles.”
The deal gives access to Lucid's technologies and Lucid will supply Aston Martin with select powertrain components for initial and certain future BEV models.
Aston will issue 28.4mln shares to Lucid and make cash payments of around £182mln. Lucid will hold a 3.7% stake in Aston.
Other major shareholders in Aston, including Yew Tree Consortium, Mercedes-Benz and Geely have backed the deal.
The DB7 maker also rejigged an existing deal with Mercedes-Benz AG.
The amended terms will see the original agreement to issue additional Aston Martin shares to Mercedes-Benz in exchange for access to further technology replaced with a restated commitment to the existing strategic collaboration allowing the two parties to discuss future access to technology for cash.
7.02am: Flat start seen in London
The FTSE 100 is expected to make subdued progress as trading kicks off for the week with markets reacting to events in Russia over the weekend.
Spread betting companies are calling London’s lead index down by 3 points from Friday’s closing level of 7,461.87.
In the US stocks ended the week in the red. The Dow Jones Industrial Average closed down 0.7%, the S&P 500 down 0.8% and the Nasdaq Composite down 1.0%. In Asia, on Monday, markets also weakened.
Back in London, and Sky News reported that shipbroker Braemar is likely to tell investors within the coming days that it will be unable to meet the publication deadline for its full-year results.
Sky said that City sources said that BDO, the company's auditor, had notified the company of concerns in its accounts.
Elsewhere, the early focus will be updates from Rio Tinto and Associated British Foods.