Hope of a trade deal between the US and China have begun to gain momentum, leading to renewed confidence among investors. Click here for The Trader Nicole Elliott's latest views on the markets.
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International Consolidated Airlines (IAG) upgraded some of its long term goals ahead of its capital markets day. The airline group now expects cash profits of €7.2bn (£6.3bn) average per annum, compared to €6.5bn for 2018-2022 previously. Expectations for average net capital expenditure over the same time period has increased form €2.1bn to €2.6bn, while available seat kilometres are expected to increase by 6 per cent rather than 5 per cent. Shares were up 1 per cent in early trading.
Paddy Power Betfair (PPB) reported a 12 per cent increase in revenue during the third quarter to £483m, driven by online gambling and growth in the US. Full year cash profits, without including US sports betting, are expected to be between £465m and £480m – a slight increase on previous guidance of £460m and £480m. Chief executive Peter Jackson said the US had “exciting potential”, as its recently acquired FanDuel business recorded a 30 per cent share of the American sports betting market. Shares were up 1 per cent in early trading.
Sales at Millennium & Copthorne Hotels (MLC) are down 2.4 per cent during the first nine months to £730m, but up 1.1 per cent at constant currency. Revenue per available room fell 3.8 per cent to £79.26. Chairman Kwek Leng Beng said the hospitality sector is facing “challenging trading conditions”, including significant supply growth, technological disruption, industry consolidation, and rising minimum wage requirements and labour costs.
