(Alliance News) - Stock prices in London are seen opening lower on Tuesday following sharp declines in Asian equity markets, as concerns grow over the spread of a virus in China.
In early UK company news, budget airline easyJet raised its passenger revenue guidance after a positive first quarter. Contract-for-difference trading provider IG Group and oil major BP announced the departures of their respective finance heads. Broadband provider TalkTalk Telecom sold its infrastructure investment vehicle FibreNation for GBP200 million.
IG futures indicate the FTSE 100 index is to open 41.74 points lower at 7,609.70. The blue-chip index closed down 23.12 points, or 0.3%, at 7,651.44 on Monday.
IG Group Holdings said it has made good strategic and operational progress towards delivery of its medium-term targets as it presses ahead with its revised strategy.
For the six months to November 30, net trading revenue came in at GBP249.9 million, down from GBP251.0 million a year before. Operating profit was GBP100.1 million, down from GBP112.5 million.
IG Group is to pay an interim dividend of 12.96 pence per share and expects to maintain its full-year dividend at 43.2p in financial 2020.
"We are now six months into the delivery of our multi-year strategy and are on track to deliver on the medium-term growth targets we have set ourselves. Early indications are very encouraging with continued growth in the client base in our Core Markets, and convincing progress in the areas identified as significant opportunities. I am very much looking forward to continuing the delivery of our strategy, and also to welcoming Mike McTighe as chairman of IG Group in February," said Chief Executive Officer June Felix.
IG said Chief Financial Officer Paul Mainwaring will retire later this year and the search for his replacement is underway.
BP Chief Financial Officer Brian Gilvary is to retire following a 34-year stint with the oil major. He will be replaced by Murray Auchincloss, who is currently CFO of BP's Upstream segment. Auchincloss will take up the role of group CFO and join the board on July 1.
easyJet said it made a strong start to financial year 2020 with continued positive momentum, which has led to an upgrade of its revenue per seat guidance.
For the first quarter to December 31, easyJet said revenue rose 9.9% to GBP1.43 billion, passenger revenue increased 9.7% to GBP1.12 billion and ancillary revenue increased by 11% to GBP301 million.
easyJet said it expects first-half revenue per seat to increase by mid-to-high single digits, compared to a previous forecast for it to rise by low-to mid-single digits.
Passenger numbers in the quarter increased by 2.8% to 22.2 million, driven by an increase in capacity of 1.0% to 24.3 million seats. Total airline revenue per seat increased by 8.8% at constant currency.
Further, easyJet said it expects to deliver a first half headline loss before tax better than the first half of 2019. The company posted an interim loss of GBP275 million.
TalkTalk Telecom Group has sold its FibreNation business and stake in Bolt Pro Tem to CityFibre Infrastructure Holdings for GBP200 million. TalkTalk intends to use the proceeds to strengthen its balance sheet and completion of the sale is expected to occur in March, it said.
Asia stepped up its defences Tuesday against a new SARS-like virus, introducing mandatory screenings at airports of arrivals from high-risk areas of China as authorities move to head off a billowing regional health crisis.
From Bangkok to Hong Kong and Seoul to Sydney, authorities have gone onto high-alert over the new coronavirus, following China's confirmation of the first case of human-to-human transmission of the deadly illness.
Four people have died in China while scores more have been infected with the virus.
Cases have been detected in Thailand, Japan and South Korea as the World Health Organization said it would meet to discuss declaring a global public health emergency over the outbreak.
The Japanese Nikkei 225 index closed down 0.9%. In China, the Shanghai Composite is down 1.2%, while the Hang Seng index in Hong Kong is down 2.5%.
The Bank of Japan slightly upgraded its growth forecast for the world's third-biggest economy but kept its monetary policy unchanged.
The central bank said after a two-day policy gathering that it now expects 0.9% expansion in the year to March 2021, an upgrade from a previous projection of 0.7%.
The brighter assessment came after Prime Minister Shinzo Abe issued a stimulus package last year to prop up the economy and damp the effects of an October hike in consumption tax from eight to 10%.
In addition, the world's business and political elite, including Trump, gather in Davos, Switzerland for the start of the World Economic Forum on Tuesday.
The pound was quoted at USD1.3015 early Tuesday, up from USD1.2998 at the London equities close Monday.
The euro was quoted at USD1.1094 early Tuesday, up from USD1.1083 late Monday.
Gold was quoted at USD1,566.33 early Tuesday, firm against USD1,560.87 late Monday.
Oil was quoted at USD64.56 early Tuesday, down from USD65.18 late Monday.
Against the yen, the dollar was trading at JPY109.94, down from JPY110.15 late Monday.
The economic events calendar on Tuesday has UK unemployment data at 0930 GMT.
Financial markets in the US reopen on Tuesday after being closed for a holiday on Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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