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Pin to quick picksInternational Airlines Share News (IAG)

Share Price Information for International Airlines (IAG)

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Share Price: 173.55
Bid: 173.55
Ask: 173.65
Change: -2.85 (-1.62%)
Spread: 0.10 (0.058%)
Open: 175.40
High: 176.15
Low: 173.15
Prev. Close: 176.40
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Spain's election brings clouds over fiscal consolidation

Thu, 06th Jul 2023 13:29

German industrial orders rose more than expected

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European sectors in the red

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China-exposed stocks down on elevated Sino-U.S. tensions

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June construction PMI 48.9 vs 51.6 in May

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at

SPAIN'S ELECTION BRINGS CLOUDS OVER FISCAL CONSOLIDATION (1223 GMT)

Spain's elections campaigning officially kicks off on Thursday, with right-wing People's Party (PP) slightly ahead in the polls, although the left-wing PSOE has been catching up.

While both parties put forward their key messages, with the ruling coalition proposing increasing social spending and the opposition betting on taxes cut, investors' wonder about financial risks that will be on the horizon after the July 23 vote.

HSBC believes that the fiscal consolidation could be the main challenge as the timing of the new government formation overlaps with 2024 budget presentation, with the spending ceilings for next year usually agreed by July.

This could cause concern among EU policy-makers, particularly with EU fiscal rules coming back in 2024, as well as investors, according to the broker.

Spanish economy is performing well, supported by a strong labour market and tourism rebound, even if the fiscal deficit remain relatively high, with spending catching up with inflation.

Spain's budget deficit narrowed to the equivalent of 4.8% of GDP in 2022 and reducing deficit could be hard, especially if growth slows and the government has to rely on the external support of regional parties, which could put extra pressure on spending.

Another risk could be Catalonia, HSBC says. Pro-independence calls can resurge with a right-wing government, but with the economic situation improving and independence sentiment fading in recent years, the risk is not imminent.

(Matteo Allievi)

EUROPEAN COMPANIES MIGHT TURN TO INDIA MORE: GS (1105 GMT)

India's economy is expected to grow strongly over the next decade and Goldman Sachs says European companies could increase their exposure - a trend catching on among several global firms.

Goldman highlights Airbus' deal with budget Indian airline, IndiGo for 500 of A320 planes, Diageo's Indian business recording 11% organic growth in the first-half, and Nokia's strong India sales growth.

GS expects Indian GDP to grow 6.4% this year and potentially at nearly 7% per year over the next decade, while its dependency ratio is likely to be one of the lowest among large economies over the same period.

That compares to an aging population in China, which is one among the reasons that have prompted global companies to look beyond China for cheaper sources of production.

Goldman cites India's efforts to that end - its recent agreement to produce a small share of Apple's iPhones being a prime example - as well as its view that India's currency is relatively defensive compared with other emerging market currencies.

GS' compendium of India-exposed European companies trades on 13 times its P/E, while MSCI India trades 21 times P/E, offering access to India's growth potential at a reasonable valuation.

"We acknowledge that direct exposure to India remains, so far, limited. Our basket makes 7% of its revenues from India. That said, we think it is a first milestone to gain exposure to India," GS says.

CIE Automotive and Coats Group from GS' basket have the largest exposure at 17% and 12% respectively, while Dassault Aviation, Pernod Ricard have around 10%

(Susan Mathew and Aniruddha Ghosh)

UK BANK PROVISIONS "LIKELY CONTAINED" IN FACE OF MORTGAGE DELINQUENCIES - JPM (1009 GMT)

JPMorgan equity analysts anticipate a rise in delinquencies on UK mortgages as soaring rates put pressure on UK homeowners and buyers alike, but they do not forecast a resulting increase in loan losses for UK banks.

The answer has to do with the UK house price resilience and the predominance of loan-to-value ratios of below 80% on UK banks' books.

Writing in a note, they say "the bottom 30% of households by income, which represents c.5% of the mortgage books, could struggle to pay their mortgages if swap rates remain at current levels (>5%)."

This dwarfs the 2.8% of households that JPM says struggled to repay their debt during the GFC.

Despite all this, they expect bank provisions for loan losses to likely be contained.

The predominance of lower LTVs mortgages on banks' books mean house prices would need to correct by over 15% for loan losses to start rising significantly. So far they have corrected about 5% , says JPM.

".... banks only have c.5% of their books >80% LTV and <1% with LTVs >90%, which gives us confidence that we will not see a significant tick-up in mortgage write-offs."

The analysts estimate 35% of mortgages will re-price higher the first year, and 50% in 24 months, implying a risk of a 2-2.5% uptick in mortgage delinquencies in 2023 and 2024.

Rates would need to reach 7% for the next income bracket to be affected, they say, a scenario that would increase mortgages at risk to 9%.

Financial markets bet on Thursday that the Bank of England will raise interest rates to 6.5% early next year.

(Lucy Raitano)

SECTORS FLASH RED AS STOXX STAYS RISK-OFF (0820 GMT)

Europe's STOXX 600 is sinking 1.1% as a risk-off attitude permeates markets on hawkish Fed signals, Chinese growth worries and general recession fears.

All sectors are flashing red, but retailers, travel and leisure and real estate are the worst off sectors, all sinking 2.1%-1.9%.

Swedish video game developer Embacer Group is at the bottom of the index though, down 12.9% after raising $182 million in a discounted share issue.

Airlines feature heavily in the biggest losers on the STOXX 600, with the likes of Tui , Easyjet, British Airways owner International Consolidated Airlines and Air France all falling 2.7%-3.9%.

UK budget airliner Jet2 posted full year results and said it has seen a pick-up in demand for package holidays as Britons seek certainty on spending in a cost of living crisis.

Currys is taking a battering over in the UK, with shares down 13.3% and on track for their biggest daily drop since March 2020. The British electricals retailer suspended payment of full year dividend after reporting a 38% slump in annual profit.

Small cap oilfield services firm Hunting is moving in the opposite direction, soaring 22% after it raised its full year core profit outlook.

(Lucy Raitano)

EUROPEAN FUTURES SAG AS FED HAWKISHNESS BEARS DOWN (0631 GMT)

Confirmation that the absence of a Fed rate hike at its last meeting was a "skip" rather than "pause" came in the form of meeting minutes on Wednesday.

Almost all of the Fed officials agreed to skip June hike, and such hawkishness is set to weigh on equities.

Futures on the Euro STOXX 50 are down 0.6%, while those on the FTSE 100 and DAX are also down 0.5%.

Data on Thursday morning showed German industrial orders rose significantly more than expected in May, due to large scale orders of ships, spacecraft and military vehicles.

A few notable companies have reported results. British electricals retailer Currys reported a 38% fall in full year profit, while London-listed Ukraine-focused miner Ferrexpo said second-quarter iron ore pellet production was up 18%.

Recession fears remain at the forefront, after the U.S. yield curve hit its deepest inversion since 1981.

(Lucy Raitano)

FED HAWKS, CHINA TENSIONS KEEP MARKETS UNDER PRESSURE(0607 GMT)

U.S. policymakers are stealing the spotlight in the markets today, after the Fed cemented its hawkish credentials overnight and Janet Yellen started a trip to China just as Beijing restricts chip-making metal exports.

APAC investors clearly took notice, sending stocks sliding and bond yields higher in a signal that Europe should brace for the same.

The key takeaway from minutes of the Fed's June meeting overnight is that the unanimous decision to hold wasn't so unanimous after all, with the hawks just biding their time.

Traders see a July hike as pretty much assured, but it's still a coin toss whether there will be another after that.

There are no fewer than four U.S. labour market reports due in the next 48 hours, culminating with Friday's U.S. non-farm payrolls.

Meanwhile, the U.S. Treasury secretary touches down to start a three-day China visit. It's currently a balmy 36 degrees Celsius in Beijing, but the atmosphere is decidedly frosty after the usual red carpet was replaced with a warning that curbs on shipments of gallium and germanium were a "well thought-out heavy punch", but also "just a start".

China says it's not targeting any particular country, but the United States - with help from somewhat less-keen allies in Japan and the Netherlands - has ramped up restrictions on chip-tech trade with China for months.

Another tech war is also heating up between billionaires Mark Zuckerberg and Elon Musk.

Zuckerberg has been live, um, threading that sign-ups for the potential Twitter-killing app Threads passed 5 million in the first four hours.

No updates on the pair's proposed cage match.

Britain will report construction PMIs for June later in the day, as will Germany, which also has factory order figures for May on the release schedule.

Key developments that could influence markets on Thursday:

Yellen begins 3-day China visit

UK and Germany June construction PMIs, Germany May factory orders

US initial jobless claims, ADP employment report, JOLTS job openings, ISM non-manufacturing PMI, S&P Global PMIs

(Kevin Buckland)

More News
27 Oct 2023 12:06

LONDON MARKET MIDDAY: Oil majors lift FTSE 100 but banks fall

(Alliance News) - Stock prices in London were up at midday on Friday, as the FTSE 100 was led higher by oil majors, tracking a rise in the Brent price.

Read more
27 Oct 2023 09:18

TOP NEWS: BA-owner IAG has "record" quarter despite air traffic snafu

(Alliance News) - International Consolidated Airlines Group SA on Friday hailed a "record third-quarter performance" that provided money for investment and debt reduction.

Read more
27 Oct 2023 07:54

LONDON BRIEFING: NatWest notes "serious failings" in Farage findings

(Alliance News) - Stocks in London are set to open slightly higher on Friday, as investors wait for a key US inflation reading.

Read more
27 Oct 2023 07:07

IAG reports record third quarter as demand continues to recover

(Sharecast News) - British Airways owner IAG reported a record-breaking third-quarter operating profit of €1.745bn on Friday, marking a substantial increase from the €1.216bn reported in the same period of 2022.

Read more
20 Oct 2023 17:06

LONDON MARKET CLOSE: Stocks down after difficult week for markets

(Alliance News) - Stock prices in London closed lower on Friday, after a difficult week for markets, as investors contend with the heightening war in the Middle East as well as the prospect of higher interest rates.

Read more
20 Oct 2023 17:06

LONDON MARKET CLOSE: Stocks down after difficult week for markets

(Alliance News) - Stock prices in London closed lower on Friday, after a difficult week for markets, as investors contend with the heightening war in the Middle East as well as the prospect of higher interest rates.

Read more
20 Oct 2023 15:44

UK earnings, trading statements calendar - next 7 days

Monday 23 October 
Shanta Gold LtdTrading Statement
South32 LtdTrading Statement
Tuesday 24 October 
Angling Direct PLCHalf Year Results
Anglo American PLCTrading Statement
Barclays PLCQ3 Results
Bunzl PLCTrading Statement
FD Technologies PLCHalf Year Results
Gattaca PLCFull Year Results
Petra Diamonds LtdQ1 Results
Scancell Holdings PLCFull Year Results
Softcat PLCFull Year Results
Travis Perkins PLCTrading Statement
Trifast PLCTrading Statement
WAG Payment Solutions PLCTrading Statement
Wednesday 25 October 
Asos PLCFull Year Results
Bytes Technology Group PLCHalf Year Results
Critical Mineral Resources PLCTrading Statement
Ecora Resources PLCTrading Statement
Fresnillo PLCTrading Statement
Ibstock PLCTrading Statement
Lloyds Banking Group PLCTrading Statement
Reckitt Benckiser Group PLCTrading Statement
RWS Holdings PLCTrading Statement
ScS Group PLCFull Year Results
Virgin Wines UK PLCFull Year Results
Thursday 26 October 
Bank of Ireland Group PLCTrading Statement
Bloomsbury Publishing PLCHalf Year Results
Botswana Diamonds PLCTrading Statement
C&C Group PLCHalf Year Results
e-Therapeutics PLCHalf Year Results
Financials Acquisition CorpTrading Statement
GCP Infrastructure Investments LtdTrading Statement
HarbourVest Global Private Equity LtdHalf Year Results
Hummingbird Resources PLCTrading Statement
Hunting PLCTrading Statement
Inchcape PLCTrading Statement
International Personal Finance PLCTrading Statement
PPHE Hotel Group LtdTrading Statement
Renishaw PLCTrading Statement
Standard Chartered PLCQ3 Results
Unilever PLCTrading Statement
WPP PLCTrading Statement
Friday 27 October 
International Consolidated Airlines Group SAQ3 Results
NatWest Group PLCQ3 Results
  
Copyright 2023 Alliance News Ltd. All Rights Reserved.

Read more
20 Oct 2023 12:11

LONDON MARKET MIDDAY: Middle East tensions continue to weigh on stocks

(Alliance News) - Stock prices in London were down at midday on Friday, as ongoing hostilities in the Middle East continued to weigh on investor sentiment, with US interest rate worries also tempering enthusiasm.

Read more
20 Oct 2023 08:52

LONDON MARKET OPEN: Rate worries and Middle East tensions hurt shares

(Alliance News) - Stock prices in London opened lower on Friday, with US interest rate concerns and ongoing hostilities in the Middle East keeping a lid on enthusiasm at the end of the week.

Read more
18 Oct 2023 12:00

LONDON MARKET MIDDAY: FTSE 100 falls after stubborn UK inflation data

(Alliance News) - Stock prices in London were lower heading into Wednesday afternoon, with events in Gaza and a hotter-than-expected UK inflation reading weighing on stocks.

Read more
18 Oct 2023 09:39

LONDON BROKER RATINGS: Citigroup cuts Wizz Air to 'sell'

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:

Read more
17 Oct 2023 09:56

UK competition regulator orders rethink on Heathrow Airport charges

(Alliance News) - A decision on how much Heathrow Airport can charge airlines must be reconsidered, competition regulator the Competition & Markets Authority said.

Read more
9 Oct 2023 16:56

LONDON MARKET CLOSE: Stocks suffer amid Israel conflict

(Alliance News) - Oil majors and defence contractor BAE Systems helped shield the FTSE 100 from a deeper decline on Monday, as global equities struggled as events in Israel meant it was a risk-off start to the new week.

Read more
9 Oct 2023 15:40

London close: Stocks slip into red on growing Middle East concerns

(Sharecast News) - London's financial markets closed in the red on Monday, relinquishing earlier gains as geopolitical tensions emanating from the Israel-Gaza conflict hit global sentiment.

Read more
9 Oct 2023 08:54

LONDON BROKER RATINGS: Numis raises Rotork and cuts Bodycote

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning:

Read more

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