EUROPE MARKETS: European Airlines Skid After Air France-KLM Warning
09 Settembre 2019 - 11:27AM
Dow Jones News
By Steve Goldstein, MarketWatch
European stock markets listless
Shares of Air France-KLM on Monday nosedived on a warning over
bookings, and other airlines weakened, in mostly listless Eurpean
stock markets on Monday.
Air France-KLM shares (AF.FR) plunged 9% as the airline said
"close-in bookings in the peak travel period are weaker than
foreseen in view of softening macro-economic environment."
Mark Simpson, an analyst at Goodbody Stockbrokers, said
consensus operating profit forecasts of 1.3 billion euros "will
likely move lower on the implied implications for yields on weaker
close in bookings." The guidance had been for stable pricing for
the network airlines.
Separately, a French minister told Le Parisien that Air France
"wanted to make an offer" for the bankrupt airline Aigle Azur,
Reuters reported
(https://uk.reuters.com/article/uk-air-france-klm-aigle-azur/air-france-klm-shares-slump-on-reports-of-rescue-of-bankrupt-aigle-azur-idUKKCN1VU0MQ?il=0).
Other European airlines including easyJet (EZJ.LN) ,
International Consolidated Airlines Group (IAG.LN) , Ryanair
Holdings (RY4C.DB) (RY4C.DB) and Deutsche Lufthansa (LHA.XE) also
lost ground. British Airways, a unit of International Consolidated
Airlines Group, separately was forced to cancel nearly all of its
flights
(http://www.marketwatch.com/story/british-airways-grounds-nearly-all-flights-as-pilots-strike-2019-09-09)due
to an airline strike.
Broader markets showed little movement. The Stoxx Europe 600
index weakened 0.03% to 387.01.
The German DAX gained 0.14% to 12208.19, the French CAC 40
dropped 0.08% to 5599.38 and the U.K. FTSE 100 declined 0.07% to
7277.42.
U.S. stock futures were a bit stronger.
There was a slight bit of positive news on the U.S.-China trade
war front as Politico reported that China offered to make modest
U.S. agricultural purchases -- if the U.S. relaxed restrictions on
Huawei and also delayed the next tariff increase.
U.K. economic data came in better than forecast, with monthly
GDP rising by 0.3% and industrial production edging upward in
July.
Of other notable movers, Lloyds Banking Group (LLOY.LN)
(LLOY.LN) dropped 1% after becoming the latest British bank to
report rising claims for payment protection insurance, saying it
will have to take an additional charge in the range of GBP1.2
billion to GBP1.8 billion ($2.2 billion). It halted its stock
buyback program.
ProSiebenSat.1 Media (PSM.XE) rallied over 4% as UBS upgraded
the company to buy from neutral, saying it's too cheap to ignore
despite the macro headwinds.
(END) Dow Jones Newswires
September 09, 2019 05:12 ET (09:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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