The Morning Call - Easyjet reports higher passenger numbers

Highlights of the Day

Asian Markets

Asian stock markets regained some ground after opening lower, as optimism faded that the U.S. and China would work to resolve their trade spat following President Donald Trump’s latest salvo.

U.S. Markets

Wall Street rose as investors shrugged off fears of an escalating trade conflict between the United States and China and looked forward to the quarterly earnings season.

Today's News

US President Donald Trump has ordered officials to examine imposing an additional $100bn worth of tariffs on Chinese products, in another move likely to stoke fears of an all-out trade war between the world’s two largest economies. In a statement on Thursday, Trump said he had ordered the move “in light of China’s unfair retaliation” to US tariffs of 25% on $50bn worth of Chinese goods he announced earlier this week.

easyJet on said passenger numbers in March, excluding its Berlin Tegel operations, rose year-on-year, as did capacity utilisation. Passenger numbers in March were up 3.4% year-on-year to 6.5 million. The load factor, a measure of capacity utilisation, was up to 93.4% from 92.7% in March last year. In the rolling 12 months ending March, passenger numbers are up 8.6% to 82.5 million and easyJet’s load factor was 93.4% compared to 92.7%.

The Rank Group has cut its full year operating profit expectations after like-for-like revenue fell by 2% in the 13 weeks to 1 April 2018. On a divisional basis, Mecca’s venues revenue fell by 2%, Grosvenor’s venues revenues fell by 9% and UK digital revenue grew by 17%. The company said both UK venues businesses have been impacted by weaker than expected visits, which have been compounded by two periods of cold weather.

Big Yellow Group said it has received planning permission for its 72,000 square feet store in Camberwell, while also announcing an acquisition. Big Yellow has bought a 55,000 sq ft site in Uxbridge, with no financials given. The self-storage company said this new store in West London is now subject to planning.

AO World said that its full-year results should fall within the range of current market forecasts. In a post-close update for the year to 31 March 2018, the group said revenue is expected to be up around 14% on the year to £796m, versus company-compiled revenue consensus of £794.7m. Meanwhile, the group adjusted earnings before interest, tax, depreciation and amortisation loss is expected to be around the middle of the range of between £9.7m and £1.4m.

Fidessa Group said the scheme court meeting and the general meeting to vote on the Temenos Group offer will now be held on 27 April. On Thursday, Fidessa named the two new potential rivals to the £1.4bn takeover offer from Temenos, confirming the first new offer came from ION Investment Group Ltd and the other from SS&C Technologies Holdings Inc. As a result of the two new offers, the meeting to vote on Temenos’ offer was postponed on Thursday, the day it was originally meant to occur.

Anglo American has been fined a $38m over pollution caused by the first of two leaks from an iron ore pipeline at its Minas Rio mine in Brazil last month, with another fine likely over a second leak. The company has since closed the pipeline for inspection, saying the second leak was “minor” and of non-hazardous iron ore slurry. The second leak was stopped within eight minutes and caused no disruption to local water supply, but occurred not far from the first leak, which was midway through the month.

The Co-operative Group has returned to profit after what it called a “year of progress”. The group reported a profit of £72m for 2017, after a loss of £132m the year before when it wrote off the value of its stake in the Co-operative Bank. As well as its 2,500 food stores, the group, the largest co-operative in the UK, has insurance and funeral businesses and runs 12 Academy schools. Sales at its food stores rose 3.4% and membership rose by 15% to 4.6 million.

Gold Prices rose as investors sought safer assets after U.S. President Donald Trump proposed $100 billion in new tariffs on China

Oil Prices fell after U.S. President Donald Trump’s threat of new tariffs on China reignited fears of a trade war between the world’s two biggest economies.

Companies Reporting this week

Day	Companies
Monday:	None of Note
Tuesday:	None of Note
Wednesday:	None of Note
Thursday:	None of Note
Friday:	None of Note

Early Market Movements

UK 100	7,181.3	-18.2	-0.3%
UK 250	19,499.1	-77.1	-0.4%
GER 30	12,244.9	-60.3	-0.5%
FRA 40	5,255.3	-21.4	-0.4%
U.S. 30	24,505.22	+240.92	+1.0%
U.S. 500	2,662.8	+18.2	+0.7%
OIL (BRENT)	67.96	-0.37	-0.5%
GOLD	1,324.64	-1.93	-0.2%

UK Risers & Fallers (8:15am)

Company	Price	Change	% Change
Centrica	143.2	+1.95	+1.4%
Shire	3758	+51	+1.4%
Drax	285.9	+8.9	+3.2%
Marks and Spencer	265.4	-8.6	-3.1%
Next	4689	-131	-2.7%
Pets at Home	165.35	-7.85	-4.5%

Latest Broker Views

Marks and Spencer	Goldman Sachs	Sell	274	255
Tesco	Berenberg	Buy	202.9	255
United Utilities	Deutsche Bank	Buy	708.4	800
Severn Trent	Deutsche Bank	Hold	1858	1850

Forthcoming Economic Data

12.30pm: U.S. Average Hourly Earnings m/m	0.1%	0.3%	–
12.30pm: U.S. Non-Farm Employment Change	313k	188k	–
12.30pm: U.S. Unemployment Rate	4.1%	4.0%	–
3.15pm: U.K. BOE Governor Carney Speaks	–	–	–
5.30pm: U.S. Fed Chair Powell Speaks	–	–	–