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.
EE now has the greater share in revenues though the full integration of both operators is still some time off with both companies fighting in similar markets, broadband and wireless, under different brands.
If a full merger goes ahead it would mean a fully integrated pay TV and mobile/broadband player offering significant integration cost savings.
6% plus house UK price growth
New data from Barclays claims UK house growth will climb by 6.1% by 2021. Barclays claims new hotspots will develop in the north supported by strong buy-to-let and millennical investor interest.
New data from Hometrack claims London saw its lowest rate of house price growth in April – 3.5% compared to more than 12% at the same time last year.
There was better growth from Birmingham (7.7%), Nottingham (7.2%) and Manchester (8.2%) says Hometrack with the pace of house inflation slowing in southern cities such as Cambridge and Bristol.
Breaking news: Ryanair claims a 5% hike in pre-tax profits to €1.47bn for the full year.