All eyes will be on IAG’s share price this morning as investors assess the weekend’s IT catastrophe for British Airways. IAG shares have already fallen heavily in trading, down 4% initially, knocking more than £350m off the carrier’s market capitalisation.
As of 7am the euro was at $1.1123, down -0.36% on the last 24 hours while the pound was at $1.2808, down -0.23%. In the last week the pound has fallen more than 1.5% against the euro as election worries seep through though some analysts are predicting a pound re-bound.
Later today we have EU Business Climate Indicator and Economic Sentiment (11am) stats while US income and spending figures arrive at 1.30pm. Markets today in Asia – China and Hong Kong – are closed today for the Dragon Boat Festival.
- UK FTSE 100 7,547.63 +0.40%
- Dow 21,080.28 -0.01%
- S&P 500 2,415.82 +0.03%
- Nasdaq 6,210.19 +0.08%
- DAX 12,610.95 +0.21%
- CAC 40 5,337.47 -0.08%
- Gold 1,270.30 -0.09%
- Oil WTI 49.81 +0.02%
Shareholders lose dispute
Akzo Nobel, the owner of Dulux paint, has seen off shareholder attempts to push for a special shareholder meeting in an attempt to isolate its chairman, Antony Burgmans.
Akzo is currently under pressure to accept a takeover offer from key US rival PPG Industries. However the commercial court the Dutch Enterprise Chamber has ruled Akzo does not have to hold a shareholder meeting.
PPG has made three ‘friendly’ bids for Akzo so far this year. Responding, Akzo has offered shareholders a better dividend for the second half of 2017 and new plans to create a new chemicals division. PPG now may go directly to shareholders with a hostile offer. Akzo's share price is up 25.7% YTD but down nearly 7% in the last month.
BT/EE full merger likely
It’s anticipated a full merger between BT’s mobile arm EE and its consumer division will go ahead within the next five years. BT announced the £12.5bn acquisition of mobile operator EE in August last year.