Adrian HollidayJapan’s Nikkei was down 1% on fragile trading overnight. The Nikkei 225 dipped under 20,000 to 19,979.90 as uncertainty around the UK election, a looming ECB meeting rose and a stronger yen all made inroads. Pessimistic data on Japanese real wages didn't help additionally, fuelling worry on domestic buying muscle.
Both the euro and the pound have climbed to $1.1273 and $1.2926, rises of 0.18% and 0.20% respectively, thanks largely to wider Asian trading and on-going dollar weakness. Oil prices remain under pressure with WTI at $47.13, down -0.57% and Brent at $49.23, down -0.49%. No change in the Persian Gulf crisis.
This morning UK electioneering continues with Theresa May claiming she would revive a Board of Trade though the Lib Dems described her idea as “outdated”.
- UK FTSE 100 7,525.76 -0.29%
- Dow 21,184.04 -0.10%
- S&P 500 2,436.10 -0.12%
- Nasdaq 6,295.68 -0.16%
- DAX 12,822.94 +1.25%
- CAC 40 5,307.89 -0.66%
- Nikkei 225 20,033.78 -0.66%
- Gold 1,288.70 +0.47%
- Oil WTI 47.16 -0.51%
ShutterstockNo back-up system for BA?
British Airways says it’s likely the recent IT chaos, leading to travel chaos for more than 75,000 passengers, was down to human error, not computer software.
However BA’s explanation does not offer any light on why a back-up system did not, responding, kick into action. BA chief executive Willie Walsh says an engineer disconnected and reconnected a crucial power supply in a BA data centre.
BA’s parent company IAG, the owner also of Iberia and Vueling, says a full independent investigation will be launched. IAG shares are at 600.15p, up 11.7% year-to-date but down 2% in the last month.
Apple downgraded
Apple shares were down almost 1% overnight after a Pacific Crest analyst snipped their overweight rating on the stock on sales risk worries – “market saturation and elongating” – for the next generation of the iPhone, iPhone 8.
Coronavirus affects markets
ShutterstockHowever Apple remains one of the strongest performing Wall Street shares this year, rising to $156 in May, still trading at 15 times less than projected earnings for the year. Dividend growth is also on target.
Recently RBC Capital suggested that Apple could become a $1trn company within two years – if iPhone 8 sales come good. Apple shares are valued at $153.93, up 33% year-to-date and 57.2% higher for the last year.
AO World revenues climb
Final numbers for FTSE 250 player AO World are out. The electrical retailer says total revenues for the year to 31 March increased 17% to £701.2m. UK AO website sales were up 14.5% to £557.9m.
UK profitability improved “significantly”. However group operating losses came in at £12m following trading losses from Germany and the Netherlands.
“The market the drivers for success of our business are unchanged,” said AO World in a statement. “Our customer service metrics remain exceptional and we continue to innovate to create a customer experience for tomorrow.”
Breaking news: South Korea has raised its bird flu alert to the maximum level following the discovery of the H5N8 strain. Donald Trump is to permit drilling on the Atlantic Coast, previously banned by ex-President Barack Obama.
