Trump Sends Markets Tumbling as Wizz Air Loses Altitude

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Friday, May 31: FTSE indices commenced the day in the red, following on from a red close in Asia after Chinese PMI manufacturing data missed expectations.Europe woke to the news of more sabre-rattling from who else but Trump. The POTUS announced the imposition of 5% tariffs last night on all goods coming from Mexico, in response to a surge of illegal immigrants crossing the border. Higher tariffs are due to start on June 10, and increase monthly, up to 25% on October 1 unless Mexico takes immediate action. Once more, risk assets were on the back foot following this revelation.

FTSE 250 Wizz Air fell(-4.67%) as FY19 results were in line with expectations but management guided on a softer outlook for FY20. Revenue grew by 20% to €2.32bn, driven by a 17% increase in passenger numbers, as tickets revenue increased 21% to €1.37bn as ancillary revenues increased 18% to €953m. Pretax profit came in 4.5% higher to €300.2m, as EBITDAR came in 8.9% higher at €718.5m. Fleet size grew to 112 from 93, whilst the load factor also improved 150bps to 92.8%. Management guided on an optimistic outlook for FY2020, though did caution that Summer trading will be an important swing factor for the overall year.

European equities were lower at the close, with the FTSE 100 -0.78%, the CAC 40 -0.79% and the DAX 30 -1.47%.

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