easyJet Share News (EZJ)

LONDON (Alliance News) - Stock were mixed at midday, as the pound continued to slide after former UK Foreign Secretary Boris Johnson launched an attack on Prime Minister Theresa May, while UK economic growth was revised downward and the trade deficit widened. Johnson issued a blistering attack on May's Brexit strategy just days before the Conservative Party conference. The former foreign secretary, who sensationally quit the Cabinet in July, described the prime minister's Chequers plan as "a moral and intellectual humiliation for this country" that will "cheat the electorate" if implemented. Johnson, in a Telegraph op-ed, accused the government and civil service of a "pretty invertebrate performance" in negotiations and said there had been "a collapse of will by the British establishment to deliver on the mandate of the people". As a priority, the former London mayor urged the government to ditch Chequers and negotiate a Canada-style free deal which would "fulfil the instruction of the people".Commented Joshua Mahony, market analyst at IG: "The pound has been falling in the wake of the US Federal Open Market Committee meeting on Wednesday. However, with Boris Johnson laying out a plan to sever ties with the EU and take on a Canada-style relationship, all eyes turn to the conservative conference over the weekend."The FTSE 100 was down 0.5%, or 37.72 points, at 7,507.63 at midday, while the FTSE 250 was down 0.4%, or 87.67 points, at 20,286.43. The AIM All-Share was up 0.2% at 1,098.59.The Cboe UK 100 was down 0.5% at 12,738.82, the Cboe UK 250 down 0.6% at 18,408.57, and the Cboe UK Small Companies 0.1% lower at 12,165.47.The pound was lower, quoted at USD1.3046 midday Friday, compared to USD1.3096 at the London equities close Thursday.A string of economic readings issued Friday also was mostly negative for the pound.The UK economy has suffered its weakest six-month growth period since 2011, as the figure for the first quarter was revised lower. While the second reading for gross domestic product confirmed initial estimates of 0.4% growth in the second quarter from the quarter before, the Office for National Statistics said growth was weaker than originally thought in the first three months of the year. The ONS has revised quarter-on-quarter GDP growth down from 0.2% to 0.1% for the period from January to March this year - a period that saw the UK hit by extreme wintry weather brought in by the Beast from the East. The 0.4% quarter-on-quarter estimate for second quarter GDP was in line with economist estimates. The annual rise for the second quarter was revised down to 1.2% from 1.3%.Meanwhile, due to wider visible trade deficit and primary income shortfall, the UK current account deficit widened by GBP4.6 billion to GBP20.3 billion in the second quarter. This was equivalent to 3.9% of GDP.The total trade deficit widened to GBP6.1 billion in the second quarter from GBP3.3 billion a quarter earlier. The widening was driven by an increase to imports of goods, which reached a record high of GBP120.6 billion in the second quarter.Finally, UK consumer confidence weakened in September amid heightened uncertainty surrounding Brexit, survey data from GfK showed. The consumer sentiment index dropped to negative 9 in September from negative 7 in August. The expected score was negative 8. Four sub-components of the index deteriorated in September and one stayed unchanged. The index measuring changes in past personal finances decreased three points to plus 1. Likewise, the forecast for personal finances over the coming 12 months dropped to plus 5 from plus 8 a month ago. The measure for the general economic situation during the last 12 months fell two points to negative 28, this was at the same level as September 2017, GfK said. Expectations for the general economic situation over the next 12 months edged down one point to negative 27. Meanwhile, the major purchase index stayed the same this month at plus 6.Wall Street is headed for a lower start on Friday. The Dow Jones is called down 0.2%. The S&P 500 02% lower and the Nasdaq also set to call 0.2% lower.Focus in the US will lie on the core personal consumption expenditure and Fed Richmond President Thomas Barkin's speech at 1330 BST.In London at midday, the worst performer on the blue chip was RSA Insurance, down 9.6%. The general insurer reported its UK business suffered an underwriting loss for the third quarter of 2018. UK premiums are lower, RSA said, as it takes pricing and re-underwriting action, but international business, such as in Scandinavia and Canada, is more positive. The UK division made an underwriting loss of around GBP70 million during the third quarter, recording a 110% combined ratio. A ratio over 100% represents underwriting losses. The company blamed increased weather, large losses, and attritional claims for the disappointing UK performance, with its Marine portfolio the worst hit.Third-quarter group net written premiums are 4% higher year-on-year. In the year-to-date, they are 2% down on a headline basis but up 1% net of reinsurance changes.Budget airline easyJet was also at the bottom of the FTSE 100, down 3.0% at midday.easyJet said it expects to deliver a strong performance in final quarter of 2018 financial year and profit for the year will be the upper at end of the company's guidance, partly helped by one-off events such as the bankruptcies of rivals Monarch and Air Berlin and the flight cancellations suffered by Ryanair.The British low-cost carrier added, however, that disruption across Europe continues to be an industry wide issue and is having an impact on revenue, cost and operational performance, with the main causes being European industrial action and air traffic restrictions.easyJet expects headline pretax profit for the year to September-end to be between GBP570 million and GBP580 million and revenue, including Berlin Tegel airport, to be around GBP5.89 billion.At the other end of the blue chip index, National Grid gained 0.5% after the UK energy regulator Ofgem it to claw back some costs for work carried out, but denied another similar request.National Grid had been seeking permission to recover around GBP140 million from consumers for replacing a gas pipeline in the Humber estuary, and Ofgem had told the FTSE 100-listed firm to show why this would help consumers.Since receiving new information, Ofgem has decided to allow National Grid to recover GBP111 million from consumers.On the FTSE 250, outsourcing company Serco was leading the way, up 13% at midday. The outsourcer said trading in the first few months of the second half will result in a better outcome for 2018, one which will be "meaningfully ahead" of current market expectations. The company said a strong operating performance along with several non-recurring trading items, such as end-of-contract settlements, and other commercial negotiations will contribute to the better than expected outcome. Serco is predicting underlying trading profit of GBP90 to GBP95 million on revenue of about GBP2.8 billion. Serco's previous guidance for revenue was GBP2.7 billion to GBP2.8 billion with underlying trading profit expected to be about GBP80 million. The company is also expecting its net debt to be towards the lower end of its range, GBP200 million to GBP250 million, from having previously expected it to be at the mid-to-upper end.At the opposite end of the FTSE 250, Spire Healthcare, was down 3.5%. Barclays has cut the firm to an Underweight rating from Equal Weight, and lowered its price target to 130 pence from 190p.Thomas Cook was down 3.8% after HSBC cut the stock to Hold from Buy, and lowered its price target to 70p from 150p.Waste management company Renewi was down 1.9% after it said its trading in the first half of the year, ending September, has continued "broadly" in line with management's expectations.The company said its merger integration project is progressing "well" and remains on track to deliver the committed EUR30 million of cost synergies for the year ended March 2019.Renewi is the result of the merger of Van Gansewinkel Groep BV of the Netherlands and Shanks Group PLC of the UK in 2017.Renewi expect its full-year results to be in line with expectations. In mainland Europe, the CAC 40 in Paris was down 0.5% and the DAX 30 in Frankfurt 1.5% lower at midday.Italy will run a higher-than-expected deficit next year, after its economy minister, Giovanni Tria, surrendered Thursday to demands to fund expensive tax and welfare programmes via extra borrowing.Deputy Premiers Luigi Di Maio and Matteo Salvini, who respectively lead the Five Star Movement and League parties, said a deal was struck "with all the government" to set the 2019 deficit at 2.4% of gross domestic product."We are satisfied, this is a budget for change," they said in a joint statement.Tria, a technocrat with no formal political affiliation who was seen as a bulwark against reckless spending, wanted to limit the deficit to 1.6% of GDP, keeping Italy's huge public debt in check, as recommended by the EU.The country's public debt is equal to more than 130% of GDP, against a eurozone target of 60%. The decision to run a higher deficit is likely to result in a confrontation with EU authorities.Elsewhere on the continent, Eurozone inflation accelerated in September on food and energy prices, flash data from Eurostat showed.Inflation rose marginally to 2.1%, in line with expectations, from 2% a month ago.The European Central Bank targets "below, but close to 2%" inflation.