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(Alliance News) - Ryanair on Monday said the Omicron outbreak badly damaged its peak Christmas and New Year bookings, as it reported a quarterly loss.
The Dublin-based airline suffered a net loss of EUR96 million for the three months that ended December 31, its financial third quarter. Though this was narrowed from EUR321 million a year before, it was double the net loss Ryanair reported for the entire first half of its financial year of EUR48 million. Revenue totalled EUR1.47 billion in the recent quarter, up from the Covid-depressed level of EUR340 million a year before.
Ryanair carried 31.1 million passengers in the final three months of calendar 2021, up from just 8.1 million a year before, with an 84% load factor, up from 70%. But it said December traffic of 9.5 million passengers was well behind its expectations of 11 million.
Looking ahead, Ryanair said that, following the easing of government travel restrictions, bookings have improved but remain "very late and close-in". What's more, the budget carrier has had to resort to "significant price stimulation at lower prices" to recover load factors.
Ryanair said it still expects to carry just under 100 million passengers in its full financial year to the end of March, but its net loss guidance for the year remains in a wider-than-normal range of EUR250 million to EUR400 million. Ryanair recorded a net loss of EUR815 million in financial 2021.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.4% at 7,495.80
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Hang Seng: closed up 1.1% at 23,802.26
Nikkei 225: closed up 1.1% at 27,001.98
S&P/ASX 200: closed down 0.2% at 6,971.60
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DJIA: closed up 564.69 points, or 1.7%, at 34,725.47
S&P 500: closed up 2.4% at 4,431.85
Nasdaq Composite: closed up 3.1% at 13,770.57
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EUR: unchanged at USD1.1163
GBP: soft at USD1.3417 (USD1.3422)
USD: up at JPY115.48 (JPY115.18)
GOLD: up at USD1,787.28 per ounce (USD1,784.78)
OIL (Brent): up at USD91.17 a barrel (USD90.59)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's key economic events still to come
China Chinese New Year Eve holiday. Financial markets closed. Hong Kong open.
1100 CET EU gross domestic product preliminary estimate
1400 CET Germany provisional consumer price index
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The UN Security Council is set to discuss the latest chapter in the Ukraine conflict for the first time on Monday, as a build-up of Russian troops near the border causes tensions to spiral with the West. The US put the issue on the agenda last week after informal talks with other Security Council members and Ukraine. "This is not a moment to wait and see. The council's full attention is needed now, and we look forward to direct and purposeful discussion on Monday," said US ambassador to the UN Linda Thomas-Greenfield. The deliberations are to be held in public. The US and its Western allies have repeatedly warned of a possible imminent invasion of Ukraine. They are demanding a withdrawal of some 100,000 Russian troops from the border region.
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Japan industrial output slowed sharply at the end of 2021, figures from the Ministry of Economy, Trade & Industry showed. Industrial production rose 2.7% year-on-year in December, slowing from growth of 5.1% in November and undershooting market forecasts, according to FXStreet, of 9.7%. Month-on-month, production fell 1.0%, reversing sharply after 7.0% growth in November. However, output is seen soon returning to growth. Production is expected to grow 5.2% month-on-month in January and 2.2% in February.
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BROKER RATING CHANGES
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BofA cuts Barclays to 'neutral' (buy) - price target 220 (225) pence
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Jefferies cuts Anglo American to 'hold' (buy) - price target 3,300 pence
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HSBC raises Berkeley Group to 'hold' (reduce) - price target 4,400 (4,210) pence
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COMPANIES - FTSE 100
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Oil major Shell confirmed the combination of its A and B stock has occurred, meaning it will trade under a single share line from Monday. It was a move the company announced back in December in a bid to simplify its share structure. The company also recently dropped 'Royal Dutch' from its name.
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BHP said its corporate structure unification has become effective with its new shares beginning trading in London and Johannesburg on Monday, following its sanction by the UK court on Tuesday last week. With effect from the Johannesburg equities open, BHP Group Ltd shares have been admitted to trading. As a result, the miner's PLC shares have been suspended and will be cancelled at the open on Friday. In London, the Ltd shares were admitted to trading at the open, while the PLC shares were cancelled at the same time. PLC shareholders will receive one Ltd share for each PLC share held at 2100 GMT on Friday last week.
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Russian miner and steel maker Evraz said total crude steel output fell 0.6% to 3.38 million tonnes in the fourth quarter of 2021 from 3.40 million in the third quarter. There was, however, a 7.0% quarter-on-quarter hike in iron-ore products output and a 34% rise in total raw coking coal mined. For the whole of 2021, crude steel output was 0.4% lower, while iron ore production and raw coking coal mined were 1.4% and 13% higher, respectively. Export duty in Russia hurt steel output, Evraz noted. It also hit sales, the company explained. Total steel product sales were 4.5% lower at 12.5 million tonnes in 2021, despite a 7.0% rise to 3.2 million tonnes in the fourth quarter from the third. "Total sales of steel products dropped by 4.5% YoY. This was partly because of the impact that the export duty introduced in Russia in 2021 had on the output of semi-finished products for export, and partly because of a high-base effect following the fulfilment of a contract with the key customer in 2020 in North America," Evraz said.
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Education materials publisher Pearson said it has taken sole ownership of its Credly investee, which provides workforce digital credentials and certifications. Pearson previously had a 20% stake in Credly. "It further expands Pearson's digital footprint and accelerates Pearson's focus on growth," the company said. "The acquisition comes at a time of increasing demand for digital credentials to recognise skills and certifications in a global talent market valued at around USD400 billion. Over the last year, Credly has added nearly 1,000 new organisations to its network, expanded its density of skill coverage in key segments of the labour market and maintained net renewal rates of well over 100%." Including Pearson's existing stake, the deal to buy Credly values the company at USD200 million.
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COMPANIES - FTSE 250
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Yorkshire-based meat producer Cranswick said it bought Grove Pet Foods, a producer of dry dog food for an unspecified sum. "The business operates predominantly from a purpose-built freehold facility in Lincolnshire and employs a total workforce of approximately 100. John Walgate, managing director, who has a wealth of experience in this attractive category, will remain with and continue to lead the business," the FTSE 250 listing said.
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XP Power said it has made two "complementary" acquisitions of German businesses for a total of EUR39.0 million. XP Power is a Singapore-based maker of power controllers, which convert power from the electricity grid into the form needed by industrial equipment. It has purchased FuG Elektronik and Guth High Voltage from Dr Simon Consulting. The deals bolster XP's presence in Germany, Europe's largest market for power solutions, the company noted. "FuG and Guth's product portfolio is highly complementary to XP Power's existing high-voltage offering, bringing new technology and technical capability to the group and accelerating its strategy in this fast growing market," XP said.
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COMPANIES - MAIN MARKET AND AIM
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Lookers said Constellation Automotive has snapped up just shy of a 20% stake in the car dealer. Constellation Automotive owns digital vehicle marketplace WeBuyAnyCar, as well as Cinch, a platform which also allows for the buying and selling of vehicles online. A regulatory filing noted the stake was acquired on Thursday. Constellation purchased 78 million shares at 102 pence each, GBP79.6 million in total, from Tony Bramall. Bramall had stepped down as a non-executive from Lookers back in December 2020. "Constellation has been in contact with Lookers about its investment in the group and has indicated its support for the group's recently outlined strategy and senior leadership," Lookers said.
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COMPANIES - GLOBAL
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Walgreens Boots Alliance has launched the sales process for its Boots retail pharmacy unit, Bloomberg reported on Saturday. Walgreens is sending out preliminary information on the business to possible acquirers ahead of first-round bids due in the coming weeks, Bloomberg reported citing people with knowledge of the matter. The UK chain could be valued at GBP7 billion in a sale, Bloomberg added. Sycamore has joined a small group of other buyout firms exploring bids, the people said. Sycamore joins the likes of Bain Capital and CVC Capital Partners, who are said to have teamed up on a bid, while Advent International and KKR also have been reported as mulling approaches. Bloomberg said Walgreens is also considering a possible initial public offering of Boots if buyout interest is lacklustre.
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Monday's shareholder meetings
Georgia Capital PLC - GM re sale of water utility business
Global Petroleum Ltd - AGM
Logistics Development Group PLC - GM re investment policy
Star Phoenix Group Ltd - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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