IAG lifts full-year earnings forecast, Halma agrees to buy Sewertronics
London open
The FTSE 100 is expected to open 31 points higher on Friday, having closed down 1.1% on Thursday at 7,702.64.
Stocks to watch
British Airways owner IAG on Friday lifted its full year earnings forecasts on the back of strong summer demand as first-quarter profits beat expectations. The group, which also owns Iberia and Aer Lingus, now expects annual profit to be higher than the top end of its previous €1.8 - 2.3bn range published in February. Operating profit for the three months to March was €9m, compared with a €718m loss a year earlier and smashing the €179m loss forecast by analysts as lower fuel prices provided a boost. Revenue surged by 71% to €5.9bn.
Safety equipment maker Halma said on Friday that it has agreed to buy Poland’s Sewertronics for up to €59m (£52m). Sewertronics' technology repairs and rehabilitates wastewater pipelines without the need to dig a trench, by inserting a lining into the pipe, which is then cured using its innovative and patented ultraviolet (UV) LED technology. Halma said this UV technology has less impact on the environment, is more efficient, less disruptive and safer than other curing methods that use hot water or steam. Sewertronics is based in Rzeszów and has sales and service partners in most major regions.
Newspaper round-up
The UK and US have intervened in the race to develop ever more powerful artificial intelligence technology, as the British competition watchdog launched a review of the sector and the White House advised tech firms of their fundamental responsibility to develop safe products. Regulators are under mounting pressure to intervene, as the emergence of AI-powered language generators such as ChatGPT raises concerns about the potential spread of misinformation, a rise in fraud and the impact on the jobs market, with Elon Musk among nearly 30,000 signatories to a letter published last month urging a pause in significant projects. – Guardian
Train passengers face further disruption this summer after members of the RMT rail union voted overwhelmingly for further strike action. A ballot of members working across 14 train operating companies “massively reaffirmed a mandate for further strike action”, the union said on Thursday, with 90% of votes cast in favour of holding more strikes over the next six months. – Guardian
Apple has reported its second straight drop in revenues as the rising cost of living hits sales of its high-end devices. The US tech giant, the world’s biggest company by market value, said last night that revenues had fallen by 3pc to $94.8bn (£75.4bn) in the first three months of the year. Profits dropped by 3.4pc to $24.2bn. – Telegraph
The Bank of England is to give City rulebreakers half-price fines if they settle cases early in an attempt to speed up investigations. As part of an overhaul of its enforcement powers for non-criminal cases, the Bank’s Prudential Regulation Authority (PRA) has outlined plans for an “early account scheme”. – Telegraph
Vodafone and Three are closing in on a £15 billion merger agreement to create the UK’s biggest mobile network operator with 28 million customers. The deal, which would be likely to face intense regulatory scrutiny, is expected to be announced this month and follows the appointment of Margherita Della Valle, formerly Vodafone’s chief financial officer, as chief executive. – The Times
US close
Wall Street saw another day of losses on Thursday, as worries about a slowing economy and concerns about regional bank liquidity dampened investor sentiment.
The declines followed the Federal Reserve's decision to raise interest rates by 25-basis points overnight, marking the central bank’s 10th consecutive rate hike.
At the close, the Dow Jones Industrial Average was down 0.86% at 33,127.74, while the S&P 500 dropped 0.72% to finish at 4,061.22.
The technology-heavy Nasdaq Composite slipped 0.49%, ending the session at 11,966.40.
On the currency front, the dollar had a mixed performance against other major currencies.