Ryanair profits jump 10pc, NewRiver in talks to buy Hawthorn Leisure
London open
The FTSE 100 is expected to open 42 points higher on Monday, having closed down 0.12% at 7,778.79 on Friday.
Stocks to watch
AstraZeneca received US regulatory approval for its Lokelma treatment for hyperkalaemia, an increased level of potassium levels in the blood suffered by many people with chronic kidney disease and heart disease. Separately, the FTSE 100 drug company submitted a new drug application in Japan for a diabetes treatment, following recent approval in Europe.
Budget airline Ryanair posted a 10% jump in full-year pre-tax profit on Monday but said its outlook for FY19 was on the “pessimistic side of cautious” on the back of rising costs and flat fare growth. In the year to the end of March 2018, pre-tax profit rose to €1.6bn from €1.5bn the year before, as total operating revenues increased 8% to €7.2bn. Passenger numbers increased 9% to 130.3m despite 25 winter aircraft being grounded and the load factor - which gauges how the planes are - came in at 95%.
NewRiver was forced to admit that it has entered a period of exclusivity with Hawthorn Leisure Holdings and its major shareholder regarding a potential acquisition of the business on Monday, following press comment. The FTSE 250 firm said a transaction, if completed, would be funded from NewRiver's existing resources. “There can be no certainty that a transaction will be concluded and a further announcement, as appropriate, will be made as soon as practicable,” its board said.
Newspaper round-up
Britain’s decision to leave the European Union has sparked a dramatic fall in the number of French, Dutch and Belgian businesses registering in the UK, in a further illustration of Brexit’s impact on the UK economy. Figures from Companies House show that French companies registered 48% fewer businesses in the UK in 2016-17 than the previous financial year while companies in Belgium registered 38% fewer. Companies in the Netherlands, which is probably the worst affected by Brexit of Britain’s trading partners, registered 52% fewer companies last year than in 2015-16. – Guardian
Hundreds of Marks & Spencer staff will find out as soon as Monday whether their store is closing, as the retailer accelerates its retrenchment from struggling UK high streets. The M&S chief executive, Steve Rowe, is shutting 100 of its large clothing and food shops amid falling sales and profits. It has already closed 20, affecting about 900 jobs, but staff are braced for the axe to fall on another tranche of stores before the announcement of its annual results on Wednesday. – Guardian
Sky is narrowing its focus on virtual reality with the launch of a new technology hub on its west London campus. The media giant will today unveil plans to create a 70,000 square foot site on its UK headquarters, its third tech centre in Europe. The space will house engineers and software developers focusing on new products in areas such as virtual reality. – Telegraph
Britain’s largest shareholder advisory groups have called on investors in Royal Dutch Shell to reject growing demands for the oil giant to take full responsibility for its impact on the environment. Shell faces a binding shareholder vote tomorrow to decide whether to adopt rigorous accountability standards to bring its operations into line with the Paris climate agreement. Glass Lewis and ISS have urged shareholders to reject the “unduly burdensome” and “problematic” proposal. – Telegraph
Two leading business lobby groups have urged the government to reform immigration rules amid growing fears that Britain will lose its competitive edge after Brexit. The demands increase calls from industry bodies for clarification about how immigration policy should be shaped. The City UK, which lobbies for financial and professional services firms, and EEF, an organisation representing manufacturers, have warned Theresa May that Britain’s key industries face a “recruitment crunch” after Britain leaves the European Union. – The Times
Royal Bank of Scotland is considering restarting dividends on a scale that would make it one of Britain’s most generous payers to shareholders and would be likely to accelerate the government’s sale of its holding. Ten years after RBS was banned from paying dividends as part of its £45.5 billion bailout, the state-controlled bank is set to return to payouts with a policy that could be as ambitious as that of Lloyds, its rival. Lloyds, also banned from paying dividends during the financial crisis, restarted distributions in 2014 and has pledged to return at least half of its earnings to shareholders. – The Times
US close
Wall Street finished on a mixed note, weighed down by losses for energy and financials, as traders scanned the headlines swirling about the second round of trade talks between China and the US.
Significantly, overnight officials in Beijing questioned reports that its government had offered to slash the Asian giant's bilateral annual trade deficit with the States by $200bn.
However, in what was seen by some as an 'olive branch' to Washington, China did row back on its initial response to the US administration's threats of trade tariffs, announcing the end of its anti-dumping and anti-subsidy investigations into US exports of sorghum.
Against that backdrop, by the closing bell, the Dow Jones Industrial Average was flat at 24,715.09, alongside a 7.16 point or 0.26% dip for the S&P 500 to 2,712.97.
For the week, the S&P 500 ended 14.75 points lower.
The Nasdaq Composite also closed lower, slipping 0.38% or 28.13 points to finish at 7,354.34.