FTSE 100 Live: Omicron hopes boost stocks, Ryanair doubles loss forecast, Paddy Power-owner strikes Italy deal

ESI
City Staff24 December 2021

Ryanair is to cut its January schedule by a third as the low-cost carrier last night revealed the major financial impact of travel restrictions to deal with the Omicron variant.

With Christmas demand severely weakened by last weekend's ban on UK arrivals into France and Germany, Ryanair more than doubled its annual loss forecast to as much as 450 million euros (£382 million). It has also been hit by the suspension of EU flights to Morocco.

Despite the new guidance, re-opening stocks and airlines including easyJet rallied sharply in London today after encouraging data on the severity of the Omicron variant boosted hopes the world can avoid more lockdowns.

Live updates

23 December 2021

Late rally boosts FTSE

The FTSE 100 has ended the day at its highest level all session. The bluechip index has closed up 40 points, or 0.55%, at 7382.

The leaders board looks much the same as it has all day: Rolls-Royce has eclipsed IAG to end the day at the top of the FTSE, but IAG isn’t far behind. Paddy Power-owner Flutter is near the top after striking a £1.6 billion deal in Europe’s second biggest gambling market, Italy.

At the other end of the index, drug makers like Dechra Pharmaceutical and Hikma are on the slide, likely as investors reason that Omicron’s apparent lack of severity will mean lower demand for medicines across the board.

That’s all from us on the blog today and for this year. We are taking a Christmas break and will be back on 4 January. Merry Christmas all.

23 December 2021

Higher open on Wall Street

Markets have opened solidly in the green in New York this afternoon. The Dow is the best performer, up around 0.6% just after the open, while the worst is the Nasdaq, still up a respectable 0.3%.

The story on this side of the Atlantic remains much the same as it has been all day. IAG is back at the top of the index while Rolls-Royce, EasyJet, Wizz Air, IHG and other are all also making gains thanks to hopes that Omicron may not wreck travel plans after all.

The FTSE 100 has ticked higher since lunchtime and is currently up 20 points, or 0.27%, at 7361.

23 December 2021

HSBC buys Indian wealth manager

HSBC has announced a deal to buy Indian wealth manager L&T Investment Management for $425 million.

HSBC said the deal would help it achieve its ambitions to build out its wealth management franchise in the broader Asia region. L&T is the 12th biggest wealth manager in India, with just over $10 billion in assets managed on behalf of 2.4 million clients.

CEO Noel Quinn said: “This transaction enhances the strength of our business in India and reinforces our status as one of Asia’s leading wealth managers.

“Combining LTIM with our existing Indian asset management business gives us the scale, reach and capabilities to capture some of the 15-20% annual asset management market growth expected in India over the next five years . It also boosts our ability to serve India’s growing wealth needs, along with those of the 18 million non-resident Indians around the world.

“Together with our recent announcement to acquire AXA Singapore, this demonstrates our commitment to capturing the Asia wealth opportunity. We will continue to invest significantly to achieve that goal.”

Surendra Rosha, HSBC’s Co-Chief Executive Asia Pacific, said: “LTIM’s customer base and wide footprint in India will provide HSBC with much deeper access to a high-growth wealth management market. India’s rising income levels and higher life expectancy are driving an expanding and yet under-penetrated sector.”

The deal will be funded out of HSBC’s existing assets and is expected to immediately add value. HSBC shares are up about half a percent, little changed on the announcement.

23 December 2021

Paddy Power owner rises on Italy deal

Flutter, the gambling giant behind Paddy Power, is on the up after striking a major deal in Italy.

Flutter is buying Sisal, an online poker and lottery operator, for €1.91 billion (£1.6 billion) from private equity group CVC. The Milan headquartered business operates lotteries in Turkey and Morocco alongside online poker operations. Flutter said the deal will help it capitalise on the shift to online gambling in Italy, Europe’s second biggest betting market.

Peter Jackson, Flutter CEO said: “For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so.

“Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation. I’m excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities. We look forward to welcoming Francesco and the rest of the Sisal team to Flutter in 2022.”

Francesco Durante, Sisal CEO, said: “We are delighted to join Flutter and are convinced that through its scale and operational capabilities, we will be able to further strengthen our leadership in the markets we operate in. I look forward to working with Peter and the team on the next chapter of Sisal history.”

Shares in Flutter are up 325p, or 2.8%, to 11630p and have eclipsed IAG at the top of the FTSE.

23 December 2021

FTSE mildly positive in lunchtime trade

The FTSE 100 has major Christmas eve, eve vibes in lunchtime trade. The bluechip index is up 10 points, or 0.1%, at 7352.

British Airways-owner IAG continues to top the index on the hopes that Omicron won’t turn out to be as severe as hoped and therefore won’t have as devastating impact on the travel industry as initially thought. Engine maker Rolls-Royce is just behind on the leaders board.

EasyJet and Wizz Air are both up 4.3% on the FTSE 250 driven by the same logic.

23 December 2021

Pret sees City sales slump nearly 30% in single week as Omicron curbs hit

Pret, the coffee chain viewed as a pandemic bellwether, saw transaction levels at its City and Canary Wharf stores slump by nearly 30% in a single week as Omicron restrictions came into force.

In a bid to combat the spread of the highly-contagious variant, the Government implemented Plan B - including compulsory wearing of facemasks - on December 10. “Work from home if you can” guidance came in on December 13.

Data released today revealed till transaction volumes at Pret’s cafes catering to City workers fell 29% between the week ending December 9 and the week ending December 16, to just 52% of January 2020 levels.

This was the lowest level of trading in London City stores since the week ending September 2 - a week spanning the August Bank Holiday, over which many City workers take holiday.

Read the full piece here

23 December 2021

Aquis-listed CBD brand Love Hemp launches London tie-up with Deliveroo

Love Hemp, the CBD brand backed by Anthony Joshua, has partnered with Deliveroo to launch a trial tie-up in South London.

From today, people living within a six kilometer radius of the company‘s site in Croydon will be able to order any of Love Hemp’s oils and other offerings on the delivery app.

If the trial proves successful, Love Hemp will be offered on Deliveroo nationwide next year, the brand said.

Love Hemp has reported seeing surging sales this year amid growing interest in the sector, and is preparing a move to London’s main market.

Read the full story here

23 December 2021

Third Point chair resigns amid activist pressure

New York hedge fund boss Dan Loeb has attacked the activist investors targeting his London-listed investment vehicle, calling them a “stain” on the City engaged in “juvenile antics.”

The strong comments come after Third Point’s UK chair Steve Bates resigned from the board, citing pressure from activists.

Third Point Investors, Loeb’s London listed vehicle, said Bates resigned on Wednesday after pressure in private meetings with Asset Value Investors (AVI) and Staude Capital.

Third Point said: “One of the activists resorted to making personal threats against Steve Bates, namely that should he refuse to accede to their proposals, they would attack him in other business areas. This naturally raised a business conflict for Mr. Bates — if he continued as chair of TPIL, he would be subject to behaviour which would impede the carrying out of all his responsibilities and duties, including those he owes to the company.”

Bates said: “I very much regret having to leave the Board but have recently been put in a position where it is impossible for me to continue as a director of TPIL. I wish to thank my fellow board members, as well as the manager, for their collective efforts to strengthen the Company’s foundation and its value proposition for investors. I have no doubt these efforts will continue.”

23 December 2021

Dollar weakness boosts gold price

Improving risk appetite has dampened demand for the safe haven of the US dollar, which retreated amid an improving outlook on Omicron.

The pound stood at 1.338 versus the US dollar, its best level in a month.

The dollar weakness helped boost precious metals, with gold trading above $1,800 an ounce for the first time since late November but still down on the $1,900 peak seen earlier in the year.

23 December 2021

CT Automotive gets off to good start on AIM market

Shares in CT Automotive rose 12.2% as the manufacturer of interior components, such as dashboard panels and cup holders for brands including Bentley and Lamborghini, made its debut on London’s junior market.

The company raised £34 million from its IPO and floated at 147p per share.

In early trading Portsmouth-headquartered CT Automotive gained 18p to 165p.

Chairman Simon Phillips, who founded the business in 2000, said: “As one of the few trusted manufacturers of interior car parts for some of the world's biggest automotive brands we have long-term agreements in place and are well placed to benefit as automotive production volumes recover.”

He added: “Our IPO enables us to invest further in the growth of the business, and we are excited by the opportunities ahead."

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