Kier posts lower than expected full-year operating profits, Smith & Nephew completes purchase of Brainlab

London open

The FTSE 100 is expected to open 35 points lower at 7,126, having closed down by 0.78% at 7,162 on Friday.

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Troubled construction company Kier said full year underlying operating profit would be £25m lower than previous expectations with higher net debts. Kier, which had reported debt at the end of 2018 of £180.5m, down from £624m said it was likely to report a net debt position as at 30 June 2019, which would have an adverse impact on its FY2019 average month-end net debt position. Net costs from a strategic review of the company were also expected to be £15m than previously forecast.

Smith & Nephew has completed its acquisition of orthopaedic joint reconstruction outfit Brainlab, whose technology is used in more than 500 hospitals worldwide. The FTSE 100-listed global medical technology business said the transaction continues its strategy of investing in best-in-class technologies that enhance its portfolio of digital and robotic surgical products.

Newspaper round-up

Beijing is prepared to take “resolute action” to press its claims over Taiwan, China’s defence minister has warned as he argued that suppressing the Tiananmen revolt in 1989 was justified. - The Times

The manufacturing sector has been “paralysed” by the uncertainty surrounding the date of Britain’s departure from the European Union with investment collapsing and export customers switching away from the UK. Research by trade body Make UK also revealed that the artificial boost provided by companies stockpiling ahead of the anticipated departure from the EU on March 29 is now unwinding, revealing the full impact of Brexit on the sector. - The Daily Telegraph

UK investment manager is poised to unveil Europe’s biggest clean energy fund after raising €850m (£753m) to pour into renewable energy projects. London-based Glennmont Partners is expected to confirm this week that it has exceeded its bid to raise €600m for new clean energy projects across Europe and the UK.

US close

Stocks on Wall Street recorded their first monthly loss of the year on Friday after going deep into the red on the back of comments made by Donald Trump overnight when he revealed the US would impose tariffs on imports from Mexico.

At the close, the Dow Jones Industrial Average was down 1.41% at 24,815.04, while the S&P 500 had lost 1.32% to 2,752.06 and the Nasdaq Composite closed 1.51% weaker at 7,453.15.

The Dow closed 354 points lower following the news, which itself came amidst reports that China could be readying fresh retaliatory moves against the US.

Friday's declines put an end to a torrid week and month for stocks, with the Dow having dropped 3% in the week, its sixth straight weekly loss and longest weekly losing streak since 2011. The S&P 500 and Nasdaq posted their fourth consecutive weekly losses.