Thursday Update
DB Live: easyJet set for loss; markets up on stimulus hopes
4.30pm: Oil and equities higher
Oil was up slightly, backing off a session high of more than $43 a barrel reached on support from output shutdowns ahead of a storm in the US Gulf of Mexico and the prospect of more supply losses in Norway. Brent crude was up 86 cents, or 2%, to $42.85 barrel at 11:15 EDT (1515 GMT), after falling 1.6% on Wednesday – Reuters.
The FTSE 100 index closed up 31.78 points, or 0.5%, at 5,978.03 after US President Donald Trump highlighted the potential for a pre-election stimulus.
TalkTalk closed up 17% following a £1.1 billion takeover approach from shareholder Toscafund Asset Management.
The offer for TalkTalk’s entire share capital is priced at 97p per share, has a full unlisted share alternative, and is to be made by a newly formed company.
1.30pm: Covid response jobs
US life sciences company Thermo Fisher Scientific is expanding its operations in Scotland as part of a global response to the Covid pandemic.
12.30pm: Spirits raised in Stirling
A new £15 million Scotch whisky distillery has been proposed for Stirling which could see the creation of 50 full-time jobs.
8.15am: Markets lifted by stimulus hopes
The FTSE 100 opened 20 points higher before settling just in positive territory in early trade at 5,953.51 +7.26 (0.12%).
Global markets were encouraged by US President Donald Trump’s hints at a gradual stimulus programme.
EasyJet losses
easyJet expects to report a group headline loss before tax in the range of £815 to £845 million for the financial year 2020.
The board will not be recommending the payment of a dividend in respect of the year to 30 September 2020.
Based on current travel restrictions in the markets in which it operates, easyJet expects to fly c.25% of planned capacity for Q1 2021.
Passenger numbers for the full year fell by 50% to 48 million, in line with a decrease in capacity of 48% to 55 million seats. Load factor for the full year will decrease by 4.3 percentage points to 87.2%.
Capacity in the fourth quarter was 38% of previously planned levels with easyJet flying nine million passengers during the period with a load factor of 76.3%. Total group revenue for the quarter ending 30 September was c.£620 million.
Johan Lundgren, CEO of easyJet, said: “The UK Government urgently needs to step up with a bespoke package of measures to ensure airlines are able to support economic recovery when it comes.
“easyJet came into this crisis in a very strong position thanks to its strong balance sheet and consistent profitability. This year will be the first time in its history that easyJet has ever made a full year loss.
Markets
Wall Street rallied after US President Donald Trump threw his support behind a gradual stimulus package for the economy.
The Dow Jones Industrial Average ended the session up 1.9%, the S&P 500 was 1.7% higher and the Nasdaq Composite rose 1.9%.
IG says futures indicate the FTSE 100 to open 8.25 points higher at 5,954.50 after closing down 3.69 points, or 0.1%, at 5,946.25 on Wednesday.
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