There is more trouble for Thailand as Thai International Airways announces plans to cull 1,400 jobs and cease flights to Los Angeles and Rome. This adds to the woes of the country - where 40 per cent of the population works in agriculture - which is currently experiencing its worst drought in over a decade. Read Nicole Elliott's thoughts on the market here.
IC TIP UPDATES
Shares in theme park operator Merlin Entertainments (MERL) fell 4 per cent on the news that management expects cash profits for its resort parks division to roughly halve this financial year. Management blame a slower than usual start to the critical summer period following a crash at Alton Towers in June. As a result, the group's underlying pre-tax profit is expected to be flat on 2014. Nonetheless, we maintain our buy recommendation.
KEY STORIES
So the saga continues. Aim-listed GVC (GVC) isn't backing down to its FTSE 250 rival 888 (888). The smaller company has mounted a counter offer for stricken gambling group bwin.party digital entertainment (BPTY) of around £1bn, or 122.5p a share, compared with 888's offer of 109p a share.
Hot on the heels of its agreed sale of the Financial Times, Pearson (PSON) has confirmed that it is in talks to sell its 50 per cent stake in The Economist Group. Shares in the education giant fell 2 per cent on the morning of the announcement.
Shares in Aim-listed MySale (MYSL) rose 11 per cent following an unusually positive trading update. Revenue for the year rose by 5 per cent to A$235m (£110m) and the flash sales retailer managed to reduce its fixed costs during the second half.
AstraZeneca (AZN) has entered into an agreement with American biotech group Genzyme to divest Caprelsa, a medicine for rare diseases. Genzyme will pay AstraZeneca up to $300m (£193m), including an upfront payment of $165m, to acquire the global rights to sell and develop Caprelsa.
OTHER COMPANY NEWS
Budget airline group Ryanair (RYA) enjoyed post-tax profit growth of a quarter during the first quarter of this year, but its average fare dropped 4 per cent to €45 (£32) due to the timing of Easter and discounts on checked bags. Management expect higher average fares during the first half of the year to mean full-year net profit will be towards the higher end of the guided range of €940m to €970m.
