Ryanair Warns Of Winter Grounding

Monday, 22nd October: Extending Friday’s gains, the Shanghai composite in China gained more than 4% to start the week off with its best day in over two years. The sentiment was reflected over much of Asia with the Hang Seng in Hong Kong rising nearly 2.5%. Major European indices kept the cheerful Monday feeling alive as equity markets opened, although the mood was sustained over the rest of the day as the CAC in France and DAX in Germany fell 0.62% and 0.21% respectively. Metal prices got a boost following Chinese pledges to underpin the economy following Friday’s disappointing growth figures; Anglo American the biggest beneficiary on the blue-chip index with a rise of 1.55% recorded at the end of play. The FTSE closed down 0.10% while the Dow Jones and S&P 500 were on track to reverse Friday’s gains with both indices currently trading lower. The bubble of Brexit rumours continues to impact sterling and despite PM May’s comments that “95% of Britain’s Brexit deal has been agreed” the pound fell against major currencies, falling to below $1.30.

Sitting comfortably at the top of the main London index for the entirety of the day was the UAE private hospital provider NMC, rising more than 9% mid-morning as its 2018’s full year revenue and profit guidance was lifted. More so, organic growth is expected in 2019 with new facility openings on the horizon. Shares eventually closed 5.61% higher

Ryanair, not usually one to be in the headlines for all the right reasons, gave investors reason to sigh a slight breath of relief after posting a 7% fall in first half profits, less than the 12% previously guided. The budget airline carrier also highlighted a 27% rise in ancillary revenue, aided by a rise in reserved seating and priority boarding. Strike action by crew and pilots has dominated headlines over the summer, and further disruption hasn’t been ruled out yet. Michael O’Leary has further commented that he expects more airlines to go bust as fuel costs continue to rise, adding that full-year guidance for Ryanir itself is based on air fares not falling further, while further noting that “flights would be grounded” should the UK crash out of the EU without a deal. Shares rose 4.19%.

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