Carillion loses its chief, Centamin production at Sukari still down on last year

London open

The FTSE 100 is expected to open 35 points higher on Monday, after closing up 0.19% at 7,350.92 on Friday.

Stocks to watch

Carillion's chief executive has resigned as the company suspended its 2017 dividends and promised to carry out a strategic review as it warned first-half profits would be lower and debt higher than expected. Due to cash flows dwindling as construction contracts dry up, first-half average net borrowing is now expected to be more than £100m higher than last year at £695m, with the board deciding to sell off businesses in non-core markets and geographies to raise up to £125m in the next 12 months, alongside trimming further costs to be identified in the strategic and operational review and making a saving of around £80m by suspending the dividend.

Centamin posted its preliminary production results for the quarter ended 30 June from its Sukari Gold Mine in Egypt, with total gold production for the quarter of 124,641 ounces. The FTSE 250 firm said that was 14% increase on the previous quarter, although 11% lower than the second quarter of 2016. It maintained its 2017 production guidance of 540,000 ounces.

Newspaper round-up

Confidence among both large and small businesses has collapsed amid mounting concerns over the domestic political backdrop and fresh evidence that households, the engine of recent economic growth, are tightening their belts. A series of business and household surveys have raised concerns that the UK may be performing as poorly as it was at the start of the year, when the economy grew by only 0.2 per cent in three months. - The Times

Household spending has fallen at the fastest rate in almost four years as rising prices have made consumers less willing to splash out on furniture, clothing and trips out. Spending fell by 0.3% between April and June compared with the same period a year earlier, the biggest drop since the third quarter of 2013, according to Visa’s consumer spending index. - Guardian

The European Parliament has threatened to veto Theresa May's offer on EU citizens' rights, branding it a "damp squib" which risks creating a "second class of citizenship." In a letter published by several European newspapers, MEPs claimed Mrs May's proposals "cast a dark cloud of vagueness and uncertainty over the lives of millions of Europeans."

Shoppers would be forced to pay £3 more for a traditional British fry-up if the government fails to secure a trade deal with the EU, piling more pressure on already cash-strapped consumers. A typical basket of ingredients for a family breakfast could rise by almost 13% from £23.59 to £26.61 according to a report by KPMG. - Guardian

The telecoms watchdog will this week kick off a multibillion-pound auction of mobile airwaves that is viewed as a crucial step on the path towards next-generation 5G internet access. The contentious sale is also expected to lay the ground for an £11bn return to the stock market later this year for the mobile operator O2. - Telegraph

US close

Stocks pushed higher on Friday following a better-than-expected US jobs report for June.

At the closing bell, the Dow Jones Industrials was 0.44% or 94.30 points higher at 21,414.34, with the S&P 500 up by 0.64% or 15.43 points at 2,425.18 and the Nasdaq Composite gaining 1.04% or 63.61 points to 6,153.08.

US non-farm payrolls increased by 222,000 last month, according to the US Department of Labor, exceeding forecasts for an increase of 177,000.

Friday's data came alongside a combined positive revision of 47,000 payrolls to figures for the previous two months.

Unemployment surprised by ticking up by a tenth of a percentage point to 4.4%, but that was entirely due to growth in the labour force.

Economists had been expecting a 177,000 person increase and that the unemployment rate would be steady at 4.3%.