Bunzl expecting increased revenues, AstraZeneca inks Europe vaccine deal

Stocks to watch

International distribution group Bunzl said it planned to repay employee-related government support packages and bring forward the settlement of tax deferrals after increased deliveries of food and medical products during the coronavirus pandemic drove higher first half revenues. The company on Monday said revenue was expected to increase by approximately 6% at both actual and constant exchange rates.

BP said it expected to take between $13bn and $17.5bn in impairment charges and exploration write-offs in the second quarter after it cut long term oil and gas price assumptions based on the likely enduring impact of Covid-19 and weaker demand for a sustained period.

AstraZeneca inked a deal with for European countries to provide its Covid-19 vaccine, if successful, starting from the end of 2020. The deal was signed with the Inclusive Vaccines Alliance (IVA), which is led by Germany, France, Italy and the Netherlands, for the supply of as many as 400.0m doses. Similar deals are already in place with the UK, US, the Coalition for Epidemic Preparedness Innovations and Gavi, a vaccine alliance for 700.0m doses.

Newspaper round-up

The Treasury should act to help more than a million people who have fallen through the cracks in the government’s Covid-19 income support schemes, according to a report by an influential group of MPs. The all-party Treasury select committee said large numbers of people are enduring financial hardship and are unable to benefit from the chancellor’s schemes for salaried employees and the self-employed. – Guardian

Retailers are appealing to customers to support their local shops to help them survive the coronavirus pandemic, which has devastated high street trade. “It’s really important people go back to using their high street,” said Gary Grant, the owner of toy chain The Entertainer. “We employ local people in local towns and if I want to hold on to my staff I need turnover.” – Guardian

The scale of the challenge facing retailers opening their doors for the first time since March is laid bare today by worrying new evidence suggesting half of shoppers could stay away. The exclusive YouGov poll for the Daily Telegraph also suggests that four in ten consumers will cut spending below pre-lockdown levels as the economic havoc wrought by Covid-19 raises fears over mass unemployment. – Telegraph

Britain’s economy will shrink by 8 per cent this year but it should rebound faster than initially expected, according to the EY Item Club. After official figures released last week showed that the economy shrank at its fastest pace on record in April, the forecasting body downgraded its predictions for the year from a previous estimate of a 6.8 percent contraction. – The Times

Landlords to the hotel chain Travelodge have warned they may reject its restructuring plan this week if they do not get clarity about a £40 million investment by its owners. The group of landlords demanded more details yesterday about the proposed investment before deciding how to vote at a meeting on Friday. – The Times

US close

Stocks on Wall Street ended Friday’s session in the green, with the Dow Jones Industrial Average closing up 1.9% at 25,605.54.

At the same time, the S&P 500 added 1.31% to 3,041.31, and the Nasdaq Composite was 1.01% firmer at 9,588.81.