IAG losses narrow in third quarter, Morgan to end year at 'top end' of forecasts

London open

The FTSE 100 is expected to open 26 points lower on Friday, having closed up 0.43% at 7,279.91 on Thursday.

Stocks to watch

British Airways owner IAG narrowed third quarter losses as more people started to travel with the lifting of Covid restrictions. The company on Friday posted an operating loss of €452m compared with a loss of €1.92bn last year when passenger travel came to a virtual standstill. IAG added that it expects a €3bn annual operating loss before exceptional at current fuel prices and exchange rates. Fourth-quarter is expected to be approximately 60% of 2019, resulting in 2021 capacity of 37% of the 2019 level.

Morgan Advanced Materials said in a trading update on Friday that sales for the first nine months of the year were 8.9% higher on an organic constant-currency basis, compared to the same period last year. The FTSE 250 company said its thermal products division saw sales 9.9% higher, with growth in molten metal systems and thermal ceramics, while in the carbon and technical ceramics operation sales were 8.1% higher, with growth in electrical carbon and technical ceramics offsetting a decline in seals and bearings. With the continuation of the good performance seen so far, the board said it was expecting full-year organic constant-currency growth to be around the top end of its previous guidance range of 7% to 9%.

Newspaper round-up

The metals tycoon Sanjeev Gupta should be investigated for potential breaches of his duties as a company director, according to a scathing report by MPs that said his leadership threatened the future viability of Liberty Steel. Liberty Steel has lurched through eight months of crisis after the March collapse of its key financial backer, Greensill Capital, triggered an ongoing attempt to find new lenders. - Guardian

The return of the international super-rich to London amid the easing of coronavirus pandemic restrictions has fuelled the highest annual growth in property prices in the capital’s most expensive district since 2015. Average home prices in “prime central London” – which stretches from Chelsea to Camden and Notting Hill to Westminster – have risen by almost 7% since the start of the year, according to research by the estate agent Knight Frank. - Guardian

One of Virgin Media O2’s owners has stoked City expectations of a blockbuster float of the £31bn mobile and broadband giant as soon as next year. Mike Fries, chief executive of Liberty Global, said he was mulling listings for some of its European telecoms operators, fuelling speculation that a listing of the cable and mobile company could be brought forward to 2022. - Telegraph

Fraudulent claims on three emergency government schemes may have cost the taxpayer almost £5 billion, according to an analysis of figures published by HM Revenue & Customs. The tax authority has estimated in its annual report that up to 6.4 per cent of the billions of pounds provided to companies supposed to be supporting furloughed employees may have been lost to fraudsters — meaning as much as £4.42 billion may have been paid to criminals abusing the scheme. - The Times

A shortage of candidates is hitting firms’ recruitment plans and starting salaries for full-time and temporary staff have hit record levels, according to a report. Hiring has continued in recent weeks, although the availability of candidates fell sharply, a survey by the Recruitment and Employment Confederation (REC) and KPMG suggested. - The Times

US close

US stocks were in a mixed state at the close on Thursday, as investors mulled the latest initial jobless claims figures.

The Dow Jones Industrial Average was down 0.09% at 36,124.23, while the S&P 500 gained 0.42% to 4,680.06 and the Nasdaq Composite advanced 0.81% to 15,940.31.

Those moves came after Wednesday’s record highs, when the US Federal Reserve said the economy was strong enough for it to start tapering its pandemic bond buying programme.

“In line with our base case, the Fed announced it will reduce the monthly QE buying pace by $15bn per month starting from mid-November,” said Danske Bank.

“This means that QE is concluded in June.”