- FTSE 100 finishes 30 points higher
- US stocks indexes retreat
- China GDP tops forecasts lifting miners
4.45pm: FTSE 100 closes higher
The FTSE's winning streak continued on Tuesday, finishing 0.4% higher at 7,909 points.
Since closing at just under 7,635 on the second trading day of April, London's blue-chip shares index has extended its gains for eight days in a row.
“After a quieter start to the week, the FTSE 100 has made more headway today, even with the pound’s strong showing against the dollar," IG's Chris Beauchamp said.
"Another boost on wages seems to have trumped the rise in unemployment benefit claimants and the higher unemployment rate, with the BoE now expected to use the strength in pay packets to support another rate hike.”
3.55pm: More US results to come
The FTSE 100 index held its gains above the 7,900 level as London trading entered its final half-hour, with stronger-than-expected Chinese GDP and consumer spending data helping support miners and luxury brands such as Burberry, even as Wall Street turned lower in the face of a deluge of US corporate earnings.
Fawad Razaqzada, market analyst at City Index and FOREX.com noted: "Investors were also digesting US earnings, as Goldman Sachs and Bank of American produced contrasting results with the former dropping more than 3% and the latter rising 2.8% in premarket. These come after strong results from JP Morgan, Citi and Wells Fargo on Friday, soothing investor concerns surrounding banks’ profitability."
He added: "Investors’ focus will turn to technology sector earnings, with Netflix set to report its results after the close tonight and Tesla the day after. Microsoft, Alphabet, Amazon, and Meta are scheduled to post their numbers next week, followed by Apple in early May."
3.30pm: More advisors for Chancellor
The Chancellor of the Exchequer, Jeremy Hunt, has appointed three new members to an advisory panel he set up in October last year to bolster the government's reputation for economic competence, including former Bank of England chief economist Andy Haldane.
The Economic Advisory Council (EAC) was established by Hunt as a palliative after his short-lived predecessor Kwasi Kwarteng’s tax cut Budget last Autumn roiled markets.
The EAC’s first four members all had a financial markets background and included two former BoE policymakers. Aside from Haldane, the latest appointments include Sir Jonathan Symonds, the chair of pharmaceuticals company GSK, and Anna Valero, an expert on productivity at the London School of Economics.
"Economic growth is essential to our long-term prospects and in the face of global headwinds, this council plays a critical role in helping our economy meet these challenges," Hunt said in a statement announcing the appointments.
3.10pm: Banking stories boost Footsie
In London, the FTSE 100 index held its gains, but on Wall Street, its blue-chip rival the Dow Jones Industrial Average remained weaker in the first hour of trading as investors digested a mixed pair of results from two banking giants.
Susannah Streeter, head of money and markets, Hargreaves Lansdown noted: ‘’A tale of two very different banking giants has unfolded as Goldman Sachs’ was hit by a dent in dealmaking, while the good times rolled for Bank of America, which reaped big windfalls from higher interest rates.
"The underlying story betrays more trickier times ahead for both banks. Volatility is expected to continue to affect the markets, which Goldman’s business is so highly interlinked with, while Bank of America’s net interest margins are set to be eroded as more customers scarper in the search for higher returns elsewhere, forcing it to offer better rates. Inflows from the worried customers of smaller banks, following SVBs collapse, haven’t changed the overall direction of deposits seeping away into money market funds offering higher yields."
She added: "Goldman had rolled the dice to get into the consumer banking game, but it was a gamble which hasn’t paid off. The bank offloaded part of its Marcus branded loans in the first quarter, booking a $470 million loss, with the rest of the portfolio now marked up for sale. It’s still unclear exactly what will happen to other parts of its consumer platform but for now its Apple partnership appears to be going strong, offering a new rate on savings of 4.15% as competition intensifies for deposits.
"Bank of America sees no cracks appearing in consumer resilience, with credit quality strong. But it has multiplied the amount it has set aside for potential losses on loans in the quarter to around $930 million, and concerns will linger about the risks of bad debt rising, if as it expects, the US economy heads into recession.’’
2.50pm: Wall Street results weigh on markets
The FTSE 100 index eased further from the day's high as US stocks opened mixed as investors weighed up another round of bank earnings, this time from the Bank of America and Goldman Sachs and some dull US economic data.
Around 15 minutes after the New York market open, the Dow Jones Industrials Average was down 0.2% or 53 points at 33,934, but the tech-laden Nasdaq Composite had added 0.6% and the broader S&P 500 was up 0.4%.
New data showed US housing starts in March fell by 0.8% to 1.420 million, above the Street’s expectation of 1.4 million, while building permits fell 8.8% to 1.413 million, below the expected 1.450 million.
The outlook for housing demand, the ultimate driver of residential construction activity, remains grim, commented Pantheon Macroeconomics senior US economist Kieran Clancy.
“The bigger picture here is that residential construction activity merely is stabilizing, after cratering last year,” Clancy said. “Housing starts across the first quarter fell at a 0.7% annualized rate, significantly slower than the 40% and 14% annualized declines in 3Q and 4Q respectively. A sustained recovery, however, remains a long way off, and total fixed investment still faces a significant drag from the likely sharp drop in capital spending this year.”
2.30pm: Real estate gains for UK
Overall commercial real estate values in the UK increased by 0.6% in March, showing gains for the first time since June 2022, according to the latest CBRE Monthly Index.
Retail capital values increased by 1.1% in March, mostly driven by retail warehouses rising 1.8%, CBRE noted. Values in the office sector fell by 0.3% last month and lost 1.5% in the quarter overall, while the industrial sector saw capital values rise 1.3% in March and end the quarter little changed, the property investment firm added.
The pick-up in March was not enough to offset falls in January and February, CBRE noted, meaning that capital values fell 0.3% overall in the first quarter of 2023.
"The March Monthly Index results showed a modest upturn, positive signs against an eight-month backdrop of downward movement in commercial real estate values," said Jennet Siebrits, head of UK research at CBRE. "It's too early to predict whether this is the start of a recovery."
2.15pm: British Gas owner under pressure
British Gas-owner Centrica saw its shares shed 2% after plans to clamp down on forced installations of pre-payment meters by energy companies have been criticised as too lenient after they stopped short of an outright ban.
Instead, companies will have to comply with a code of practice that will see body cameras worn by engineers and suppliers make at least ten attempts before forced entry plus carry out welfare visits beforehand.
Customers also will have greater leeway to clear debts while forced meter fittings will no longer be allowed for people aged 85 or over.
Forced prepayment meters become a national scandal after a Times investigation revealed British Gas contractors breaking down doors to gain entry.
According to recent government data, British Gas, Scottish Power and Ovo Energy made up 70% of all forced installations with more than 94,000 prepayment meters installed last year.
1.38pm: Here’s a quick look at the top movers and shakers on the junior market
Kromek Group PLC (AIM:KMK) shares surged 30% higher to 7p after it reported improved trading in the past quarter and said it has won a seven-year contract with a top medical imaging manufacturer.
Volex PLC (AIM:VLX) saw its shares surge 17% higher to 246.98p after the specialist maker of critical power and data transmission products said both revenue and profit for the year just ended would beat market expectations.
N4 Pharma PLC (AIM:N4P) shares rose over 7% after the biotech firm said it has completed the single loading of both EGFR and BCL-2 siRNA nucleotides onto Nuvec, its novel delivery system for cancer treatments and vaccines, and has produced good monodisperse formulations.
IOG PLC (AIM:IOG) shares slumped 18% after the company reported pressure issues and an influx of non-commercial quantities of gas in the Blythe-2 well drilling programme, which are expected to result in delays.
Echo Energy PLC (AIM:ECHO) shares dropped some 40% after the company flagged a fall in production at its Santa Cruz Sur assets in Argentina.
Shares in Mitie Group PLC (LSE:MTO) jumped 13% to near a five-year high at 92.2p after issuing a bullish unscheduled year-end trading update and unveiled its intention to carry out a £50mln share buyback.
1.04pm: US markets seen higher
Wall Street is expected to open higher as investors digest a slew of earnings statements from large US corporates, with the quarterly reporting season so far showing that most of those that have reported already have beaten expectations.
Futures for the Dow Jones Industrial Average rose 0.1% in Tuesday pre-market trading while those for the broader S&P 500 index gained 0.4% and contracts for the Nasdaq-100 jumped 0.8%.
The main US benchmarks closed higher on Monday as results continued to come in. The DJIA closed 0.3% up at 33,987, the Nasdaq Composite added 0.3% to 12,158 and the S&P 500 also improved by 0.3% to 4,151.
Data from Bank of America suggests that earnings season is going well so far. Of the companies that reported during the first week, 90% beat EPS estimates, the highest such rate since 2012.
There was mixed fortunes for US banks today with Bank of America rising 1.9% in pre-market trading after its first-quarter numbers beat expectations but a revenue miss at Goldman Sachs saw its shares fall back 3.3% ahead of the opening bell.
12.40pm: Goldman slips on revenue miss
Goldman Sachs numbers have also been released with the US investment bank reporting net revenue of US$12.22bn, 5% lower than the first quarter of 2022 but 15% higher than the fourth quarter of 2022.
The revenue number missed Street expectations of US$12.79bn and included a loss of around $470mln relating to partial sale of the Marcus loans portfolio. Shares fell 3.3% in pre-market trading in New York.
Diluted EPS was US$8.79 for the first quarter of 2023 compared with US$10.76 for the first quarter of 2022 and US$3.32 for the fourth quarter of 2022.
Net revenues in Global Banking & Markets were US$8.44bn for the quarter, 16% lower than a strong first quarter of 2022 and 30% higher than the fourth quarter of 2022.
Investment banking fees were US$1.58bn, 26% lower than the first quarter of 2022, primarily due to significantly lower net revenues in Advisory.
The bad debt picture improved with a net benefit of US$171 million in the quarter compared with provisions of US$561mln for the first quarter of 2022 and US$972mln for the fourth quarter of 2022.
Global Banking & Markets generated quarterly net revenues of US$8.44bn, driven by strong performances in Fixed Income, Currency and Commodities and Equities, including record quarterly net revenues in Equities financing.
12.09pm: Bank of America rises after results top forecasts
A busy day of results across the pond and the numbers are already rolling in.
Bank of America reported first quarter a 15% increase in net income to US$8.2bn or US$0.94 per diluted share, compared to $7.1 billion, or $0.80 per diluted share a year prior. Revenue rose 13% to US$26.3bn.
The figures for revenue and EPS beat Street expectations of US$25.32bn and US$0.81 respectively and sent shares 2.6% higher in pre-market trading.
Bank debt provisions edged up to US$931mln from US$901mln and the bank’s Tier 1 ratio improved to 11.4%, up 14 percentage points on the previous quarter.
Net income in its Consumer Banking division totalled US$3.1bn and Global Wealth and Investment Management US$917mln. In Global Banking net income reached US$2.6bn, its second best quarter ever while in Global Markets net income was US$1.7bn.
Chair and CEO Brian Moynihan said: “Every business segment performed well as we grew client relationships and accounts organically and at a strong pace.”
He highlighted a “seventh straight quarter of operating leverage,” a further strengthened balance sheet and maintained strong liquidity despite an economy with modestly slower GDP growth.
Goldman Sachs and Netflix are among those reporting numbers today.
11.34am: BAT faces Italian probe
Italy's competition authority is investigating British American Tobacco PLC (LSE:BATS)'s Italian division and e-commerce company Amazon.com Inc (NASDAQ:AMZN) for alleged misleading advertising of a heated tobacco product.
The watchdog said publicity for BAT's Glo Hyper X2 device omitted information or provided "misleading information about the health risks of the use of the product, and the prohibition on its use by minors".
Heated tobacco products, or HTPs, use a high heat to decompose tobacco, via a process called pyrolysis, which does not set it on fire or burn it, therefore avoiding creating smoke.
The Glo Hyper X2 was launched last July, pitched as a "reduced-risk product" for adult smokers who want to give up cigarettes.
The Italian watchdog noted that tobacco contains nicotine, "a substance which has the capacity to cause addiction and which, in high concentrations, is harmful to health".
But it said promotional materials for the Glo Hyper X2 do not properly explain "that its use involves the emission of nicotine – in some messages, it is even explicitly stated that consumption is 'without nicotine'."
Shares in BAT fell 0.5% to 2,832p.
11.21am: Coinbase would look at London listing
Crypto exchange Coinbase might well have listed in London rather than New York if it began the process toward a stock market float now, its co-founder and chief executive has said.
Brian Armstrong said he felt Britain is "leaning into" crypto following comments from the Prime Minister and the City minister Andrew Griffith.
By contrast he said the regulatory approach in the US had left him considering moving Coinbase's headquarters out of the country.
Armstrong told BBC Radio 4: "We started in the US so it was natural for us to list there but, honestly, given that recently the UK has been quite positive on crypto so in a different world, going back, we may have considered it."
"I do think the US risks falling a little bit behind here if some of the regulators don't engage further with the industry and create that clear regulatory environment."
Armstrong said "anything is on the table," when asked by former chancellor George Osborne at a fintech conference in London today whether the company would consider moving to Britain.
11.08am: Lloyds is Citi's favoured UK banking play
With the US bank results season in full swing Citi has taken a look at the UK banks ahead of their first quarter numbers.
The broker expects the focus to again be on net interest margins following conservative 2023 guidance by UK domestic banks and the recent move down in Fed forward curves.
But it does do not expect any major earnings surprises in the numbers and predicts outlook commentary to reassure on NIM and the cost of risk.
Citi pointed out recent events are also likely to see even greater attention placed on deposit flows, which it expects to prove more resilient than in the fourth quarter of 2022. 4Q22.
The broker also expects HSBC to commit to buybacks, which could act as a positive catalyst.
“We remain overweight UK banks, with a preference for domestic banks over international banks.” Citi said.
Lloyds Banking Group PLC (LSE:LLOY) remains its preferred play in the sector (Buy), followed by Natwest (Buy), Barclays (Buy), Virgin Money UK, (Buy/H), HSBC (Buy) and Standard Chartered (Neutral/H).
Lloyds, Barclays and NatWest were all over 1% higher on Tuesday while the FTSE 100 is holding steady around 19 points to the good.
10.37am: Insolvencies jump 16% in March
The number of firms collapsing into insolvency across England and Wales jumped last month, as companies were hit by economic headwinds such as soaring costs and weak consumer spending.
There were 2,457 company insolvencies in March, government data shows, which is a 16% increase on the same month a year ago.
Compulsory liquidations more than doubled, to 288.
The Insolvency Service explained: “Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.”
“There was also a 9% increase in Creditors’ Voluntary Liquidations (CVLs), to 2,011, in which directors decide to put their company into liquidation because it is insolvent.”
9.48am: UBS upgrades Fresnillo and Antofagasta
Mining stocks received a boost from China’s better-than-hoped GDP numbers and Fresnillo and Antofagasta PLC (LSE:ANTO) have been given a further lift by ratings upgrades by UBS.
Shares in Fresnillo rose 4.3%, putting it at the top of the FTSE 100 risers while Antofagasta sat in second place up 3%.
The Swiss bank has moved Fresnillo to neutral from sell and upped its price target to 825p per share from 700p per share.
The broker explained its downgraded the firm to sell in January as it believes consensus for financial year 2022 costs were too low and it saw downside risks to 2023 production guidance.
But now it thinks these negative catalysts have largely played out and with the stock down more than 20% overthe last three months and underperforming the gold price/GDX index by over 25% the risk vs reward is more balanced.
Although it thinks operational performance and expectations may have bottomed out it still believes consensus for 2023 costs looks too low.
On Antofagasta, UBS believes the bottom-up investment case is improving.
It upgraded its rating to neutral from sell and increased its price target to 1650p from 1200p.
Although the company trades at a premium to UK diversified mining peers its EV/EBITDA & dividend yield is comparable to key global copper peers, the broker explained.
Whilst ANTO is likely to generate limited free cash flow (FCF) in the next 2-3yrs due to high capex associated with the Centinela expansion project, UBS thinks investors predominantly hold copper stocks for leverage to the copper price/growth rather than FCF/cash returns.
“We do not see an obvious catalyst for a de-rating and believe improving political backdrop in Chile combined with low risk organic growth could drive a re-rating medium-term,” the Swiss bank said.
9.25am: Mitie soars 14% as upgrades follow strong trading
Over in the FTSE 250 and an impressive 14.4% jump in Mitie’s share price after a bullish trading update.
The facilities management company forecast group revenue to be slightly above the prior year having successfully replaced all short-term Covid-related contract revenue while operating profit is expected to be at least £155mln up from the current guidance for 'at least £145mln’.
A new £50mln share buyback programme was announced, with a £25mln first tranche launched today, Mitie said.
“Momentum from margin enhancement initiatives, including increased synergies from the Interserve acquisition, and efficiencies across our labour, third party and overhead cost base, is expected to continue in FY24,” the company added.
Broker Jefferies pointed out the unscheduled year-end trading update highlighted a better-than-expected EBITA margin and fourth-quarter organic revenue growth.
As a result, the broker thinks consensus EPS estimates are likely to increase by c.10%.
Excluding the unwind of Covid-19-related activities, organic revenue growth was 7-8% in the fourth quarter, the company said, ahead of Jefferies’ 5% forecast.
Peel Hunt has increased its financial year 2023 pre-tax profit forecast by £11.0mln (8%) to £141.0mln to reflect the increase in EBITA guidance and a marginal reduction in finance cost expectations.
Momentum from the margin enhancement initiatives is expected to continue into the following financial year and as a result pre-tax numbers have been lifted by £11.4mln (7%) to £159.6mln.
EPS estimates have been raised 10% to 9.3p to reflect the share buyback.
easyJet remains firm, up 3%, and has given a lift to Wizz Air Holdings which has gained 2.8%.
9.00am: Miners lead the FTSE 100 higher
The FTSE 100 is holding above 7,900 once more despite the pick-up in wage growth in February.
Mining companies lead the risers with Fresnillo, Anglo American and Antofagasta all advancing encouraged by China’s strong GDP numbers boosting hopes for increased demand.
At 9.00am, the lead index rose to 7,899.15, up 19.64 points, or 0.25%.
ING Economics said that “for those of us expecting the Bank of England to keep interest rates unchanged next month, the latest surprise pick-up in UK wage growth undoubtedly puts a spanner in the works.”
ING economist James Smith noted: “The headline measure, which compares the most recent three-month period to a year ago, saw regular pay growth pick up to 6.6% from 6.5% previously.”
But importantly, ING pointed out momentum is still lower than it was a few months ago.
He felt the surprise pick-up in UK wage growth casts doubt over recent indications that pay pressures have started to ease while a similar surprise blowout in services inflation would inevitably move the dial in favour of a 25bp rate from the Bank of England next month.
British Airways owner, IAG, rose 1.5% lifted by encouraging trading figures from easyJet plus the Chinese economic pick up which is likely to boost international travel.
But Taylor Wimpey fell 1.1% as JP Morgan placed the housebuilder on negative catalyst watch following the sector’s strong performance. The US bank has a neutral rating on the stock.
8.40am: Entain rises after strong start to 2023
Entain PLC (LSE:ENT) rose 2.5% after its first-quarter update. The owner of Ladbrokes said it had made a "strong start" to 2023.
Analysts at Jefferies said it was a "robust" performance, despite tough comparatives, and bodes well for achieving full-year guidance and market estimates.
The gambling firm reported a strong start to 2023 with first-quarter group net gaming revenue (NGR) up 15% and up 17% including the 50% share of BetMGM.
Online NGR rose 16%, in line with expectations and demonstrating strong momentum, while retail NGR was 14% higher.
Entain said its US joint venture BetMGM continues to grow strongly with quarter one NGR of around US$470mln, up 76%, delivering in line with guidance of US$1.8-US$2.0bn for 2023.
"We are delivering both financially and strategically, with a record number of active customers enjoying our products, and we are executing on growth opportunities to further diversify and expand across regulated markets," said CEO Jette Nygaard-Andersen.
Reiterating its buy rating Jefferies said it sees valuation support, and likely speculative share price action as the six-month window until a possible MGM return expires (early August).
Matt Britzman, equity analyst at Hargreaves Lansdown said: “The cost-of-living crisis can’t deter punters from enjoying a flutter across Entain’s suit of brands, including Ladbrokes and partypoker to name a couple. First quarter performance was strong, albeit mainly in line with market expectations, with active customer numbers reaching record levels.”
“BetMGM, the US joint venture, continues to perform well and remains on track to deliver positive cash profit in the second half of this year,” he added.
He also pointed out that despite the looming, but much delayed, White Paper on the gambling industry Entain’s global presence makes it less exposed to potential issues than more UK-focused peers.”
8.15am: FTSE 100 pushes higher
The FTSE 100 climbed in early exchanges on Tuesday after US markets closed off earlier lows and China’s economy grew at a faster rate than expected.
At 8.15am, London’s lead index stood at 7,903.42, up 23.91 points, or 0.30%, while the FTSE 250 was trading at 19,338.24, up 51.34 points, or 0.27%.
In London, the UK unemployment rate edged higher while pay growth climbed to 6.6% in the three months to February, official figures data showed.
The number of people out of work rose to 3.8% between December and February, up 0.1 percentage point, according to figures from the Office for National Statistics.
Growth in average total pay (including bonuses) was 5.9% and growth in regular pay (excluding bonuses) was 6.6% among employees in December to February. This was an increase on the 6.5% rise in the three months to January.
Samuel Tombs at Pantheon Macroeconomics said suggested the labour market is “not nearly as hot” as the employment figures imply.
Brisk growth in employment in the three months to February was driven by a 134,000 rise in self-employment; employee numbers rose by a mere 18,000.
He also felt the upward revision to the wage data has raised the chances of the MPC hiking Bank Rate again next month; a further 25bp now looks like a “toss-up,” with the odds likely to shift decisively tomorrow after the publication of March’s consumer prices report.
In company news, easyJet soared around 4% after forecasting full-year profit ahead of current City expectations of £260mln reflecting the current high levels of bookings and strong demand heading into the Summer.
John Moore, senior investment manager at RBC Brewin Dolphin, said: “The usual seasonality means easyJet expects to deliver a headline loss for the half, but there are real signs the airline is beginning to turn a corner. “
“Taking more of a ‘Ryanair approach’ to routes, baggage allowances, and staff shifts has helped to protect yields and margins, and the airline is well hedged in terms of fuel costs,” he suggested.
“easyJet should be on track to build up around 40p of earnings per share over the next 12 months or so, which would make the company’s shares appear on the cheap side relative to the rest of the market,” he reckoned.
Entain PLC (LSE:ENT) was another stock on the leaderboard with shares up 3%.
The gambling firm reported a strong start to 2023 with first-quarter group net gaming revenue (NGR) up 15% and up 17% including the 50% share of BetMGM.
Online NGR rose 16%, in line with expectations and demonstrating strong momentum, while retail NGR was 14% higher.
Entain said its US jv BetMGM continues to grow strongly with quarter one NGR of around US$470mln, up +76%, delivering in line with guidance of US$1.8-US$2.0bn for 2023.
GSK PLC (LSE:GSK, NYSE:GSK) was little changed after its £1.6bn swoop for Canada’s Bellus Health (TSX:BLU) but THG tumbled 16% after it reported revenue rose up 2.7% year-on-year to £2.24bn but pre-tax loss widened to £549.7mln from £186.3mln.
The move downwards followed a sharp rise yesterday after the firm said it had received a preliminary bid approach.
7.53am: GSK in £1.6bn Canadian swoop
GSK PLC (LSE:GSK, NYSE:GSK) has paid around £1.6bn for Bellus Health (TSX:BLU) Inc, a Canada-based, late-stage biopharmaceutical company which specialises in respiratory treatments.
The pharmaceuticals giant said the deal further strengthens specialty its medicines and respiratory pipeline with camlipixant, a highly selective P2X3 antagonist and potential best-in-class treatment for refractory chronic cough.
Camlipixant is currently in phase III clinical development with anticipated regulatory approval and launch in 2026.
The acquisition of expected to be accretive to adjusted EPS from 2027 with significant sales potential through 2031, GSK said in a statement.
It is estimated that 28mln patients suffer from chronic cough, with 10mln patients globally and 6mln in the US and EU suffering for over a year.
Luke Miels, Chief Commercial Officer, GSK, said: "Camlipixant, a novel, highly selective P2X3 antagonist, has the potential to be a best-in-class treatment with significant sales potential."
“This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies."
7.33am: easyJet profit to top forecast
Strong numbers from budget airline easyJet today. The firm expects to beat City expectations for profit reflecting the current high levels of bookings and strong demand heading into the Summer.
“Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, easyJet anticipates exceeding current market profit expectations of £260mln for FY23,” the company said in a statement.
The airline said its first half performance had improved by more than £120mln with continued growth in the second quarter although a headline loss before tax of between £405mln and £425mln for the first half is still expected.
Passenger numbers rose 35% annually in the period while revenue per seat (RPS) jumped 43%, load factor improved 10 percentage points and ticket yield jumped 31%.
easyJet described trading at Easter as “robust,” with around 1,600 flights per day.
Strong bookings have continued into summer 2023 with third quarter airline RPS expected to be around 20% higher year-on-year.
easyJet holidays also saw impressive growth with expectations upgraded for a rise of around 60% year-on-year.
In the second half, the airline expects capacity to rise around 9% to 56mln seats with fourth quarer capacity seen back to around pre-pandemic levels.
Johan Lundgren, CEO said: “We see continued strong booking momentum into summer as customers prioritise spending on travel and choose airlines like easyJet offering the best value and destination mix, as well as easyJet holidays which is continuing its steep growth trajectory as the fastest growing holidays company in the UK.”
7.13am: Unemployment edges higher, pay growth climbs
The UK unemployment rate edged higher while pay growth climbed to 6.6% in the three months to February, official figures data showed.
The number of people out of work rose to 3.8% between December and February, up 0.1 percentage point, according to figures from the Office for National Statistics.
The increase in unemployment was driven by people unemployed for up to six months.
But the number of people in work also rose with the UK employment rate estimated at 75.8% in December 2022 to February 2023, 0.2 percentage points higher than September to November 2022.
The increase in employment over the latest three-month period was driven by part-time employees and self-employed workers, the ONS said.
The number of payrolled employees for March 2023 shows another monthly increase, up 31,000 on the revised February 2023 figures, to 30.0mln.
Between January to March, the estimated number of vacancies fell by 47,000 to 1,105,000, the ninth consecutive period of declines reflecting uncertainty across industries.
Growth in average total pay (including bonuses) was 5.9% and growth in regular pay (excluding bonuses) was 6.6% among employees in December to February. This was an increase on the 6.5% rise in the three months to January.
Average regular pay growth for the private sector was 6.9% in December to February and 5.3% for the public sector.
The difference between the private and public sector growth rates has narrowed in recent months.
In real terms (adjusted for inflation), growth in total and regular pay fell on the year in December to February, by 3.0% for total pay and by 2.3% for regular pay.
7.03am: FTSE 100 seen higher, China's economy grows faster than expected
the FTSE 100 is expected to open higher as US markets closed higher and Chinese GDP figures came in stronger than expected.
Spread betting companies are calling London’s lead index up by around 18 points.
China’s economy expanded at a faster rate than economists forecasts with GDP in the first quarter up 4.5% year on year as strong growth in exports and infrastructure investment as well as a rebound in retail consumption and property prices drove a recovery in the world’s second-largest economy.
Economists at ING commented: “This is a better-than-expected data report. We expect that the government will hold back extra stimulus plans and the yuan should strengthen.”
They noted the better-than-expected number reflected stronger growth in retail sales, which accelerated to 10.6% year-on-year in March and 5.8% year-on-year for the first quarter after 3.5% year-on-year growth in January to February.
The GDP figure exceeded analyst expectations of a 4% increase.
Despite the data Asian markets were mixed. In Tokyo, the Nikkei 225 index was up 0.4%. In China, the Shanghai Composite was up 0.1%, but the Hang Seng index in Hong Kong fell around 0.7%.
In New York stocks closed higher on Monday as investors look ahead to a hefty week of corporate news.
The Dow Jones Industrial Average closed up 100.71 points, or 0.3%, at 33,987.18. The S&P 500 gained 13.68 points, or 0.3%, to 4,151.32, while the Nasdaq Composite advanced 34.26 points, or 0.3%, at 12,157.72.
Back in London and the early focus will be unemployment and average earnings figures together with trading statements from gambling firm Entain and budget airline easyJet.