British Airways owner IAG has returned to profit after two years of pandemic-induced losses and forecast a further improvement in 2023 as travel continues to rebound. 'We are transforming our businesses, with the intention of returning IAG to pre-Covid levels of profit within the next few years, through major initiatives to improve customer experience and operational performance.' Capacity reached 78 per cent of pre-pandemic levels in 2022, hitting 87 per cent for the final quarter, suggesting ongoing momentum. The group is forecasting a return to 98 per cent of pre-pandemic levels as the current year unfolds. Over both a three and five year period, the shares remain down by 60 per cent.
US government borrowing costs have clocked up their longest run of increases since 1984 as the prospect of more rate hikes drove another wild day on global markets. Yields on the ten-year bonds – which move inversely to their prices – have climbed for 12 weeks in a row as US central bank, the Federal Reserve, battles to bring down rampant inflation. But it was movements in US bonds and the prospects for US rates that took centre stage. Ten-year bonds are globally important as they are used as a risk-free benchmark against which trillions of dollars of other investments are priced. UK ten-year bond yields also ricocheted before turning higher late in the session.5 months ago This is Money
Companies on the London Stock Exchange (LSE) with large exposure to China face a potential drubbing as president Xi Jinping’s tightening grip on the country hits its domestic economy and threatens global growth. Earlier this week, stocks in Chinese companies plunged after a power grab by Xi at the Communist Party’s congress sparked fears of tighter regulations and crackdowns on the business elite. While rising interest rates have been a boon for banks worldwide, a mounting crisis in the Chinese property market is causing alarm. HSBC has also found itself caught in the middle of the growing rift between East and West as China’s growing authoritarianism makes it more difficult for the bank to operate in the country without drawing criticism from politicians and activists. Shares in both companies have fallen this week in response to the growing unease around China’s economic outlook.5 months ago This is Money
For the moment at least, Wall Street appears disenchanted with the global 'disrupter' tech businesses in Silicon Valley or Seattle. Many UK investors have also become worse off. Microsoft shares, which have fallen by 33 per cent since January, are also owned by Fundsmith, another highly popular fund. So should Wall Street's new aversion to tech be a signal for UK investors to end their relationship with these US names? Tech stocks flourished in part due to the low interest rate, easy-money environment now changing rapidly.4 months ago This is Money
The FTSE 100 has remained resilient in the face of global headwinds but some stocks have fared better than othersHow has the FTSE 100 fared this year? 2022 has seen the most changes to the FTSE 100 since the end of the global financial crisis. Royal Mail, now International Distributions Services, Hikma Pharmaceuticals and Howden Joinery are among the 12 companies to fall out of the FTSE 100 this year. The FTSE 100's biggest winnersThe geopolitical tensions and war in Ukraine have helped BAE Systems top the list of the FTSE's biggest winners this year. 'Cautious management outlook comments further sapped investor enthusiasm, with the shares proving the biggest retail faller in the FTSE 100 year-to-date,' said Bowman.3 months ago This is Money
Diageo beat its first-half sales forecasts as it hiked prices and more people drank premium spirits, new results show. Net sales in the six months to 31 December rose 18.4 per cent to £9.4billion. Diageo's 'premium-plus' brands, which are more expensive than brands such as Smirnoff vodka, drove 65 per cent of its organic net sales growth. Since the pandemic, Diageo has benefited from people buying more expensive forms of alcohol to consume at home. 'The market is currently against this type of defensive name and shares will probably be weak today after these results.1 month ago This is Money
Shell shareholders are continuing to reap the benefits of record profits, as the energy giant extracts substantial rewards from high energy prices. Boost: Shell shareholders continue to reap the benefits of the group's bolstered bottom lineShareholders will be able to elect to receive their dividends in US dollars, euros or pounds sterling. Shell shares rose today and were up 2 per cent or 48.00p to 2,414.50p this morning, having risen over 24 per cent in the last year. 'Until this uncomfortable truth is confronted then the controversy over the oil and gas sectors big profits will continue.' 'For those facing exorbitant energy bills, and for all of our nurses, firefighters and teachers on the picket line this week, Shell’s profits are an insult.1 month ago This is Money
WPP has upped its final dividend and revealed expectations of top-line growth above forecasts for 2023, as it reported a rise in full-year profit and revenue. WPP shares rose 4.08 per cent or 41.50p to 1,058.00p this morning, having fallen over 10 per cent in the last year. WPP said it saw 'healthy' growth in most major markets, with advertising spend in the US and UK up 7.1 per cent and 8.9 per cent, respectively. China was the only major market to see declines in advertising spend last year as lockdown restrictions hampered trade. 'The proposed full year dividend of 39.4p puts the shares on a yield of 3.9 per cent.'1 month ago This is Money