Concern about consumer spending has pulled the rug from under Footsie after a profit warning from tour operator TUI and weak retail sales figures.
TUI Travel warned profits this year will be at the low end of forecasts after UK bookings faltered. Bookings by Britons are down by 2% over the past 12 weeks with the Netherlands down by 3%. This later booking trend, blamed on good weather in UK and the impact of the emergency Budget, has adversely affected profitability, TUI added. Rival Thomas Cook is down in sympathy.
The worries hit shares in InterContinental Hotels even though it said the hotel trade is recovering from the effects of the recession. The Holiday Inn owner also reported a better than expected 22% rise in operating profit to $219m in the six months ended 30 June.
International Power have drifted after it finally unveiled the merger with parts of French electricity giant GDF Suez Energy International. The proposed combination will be effected through a reverse takeover of GDF's businesses leaving IPR shareholders with a 30% stake.
Mining stocks are weak as metal prices retreat. Antofagasta, Rio Tinto, Kazakhmys, Xstrata and BHP Billiton are all lower.
Cairn Energy is the stand-out riser on hopes the oil explorer will find something special from its planned drilling activity in Greenland.
Bakery and sandwich chain Greggs delivered a 2.9% rise in half year sales and said despite the recent surge in wheat prices it remains confident for the full year. Pre-tax profit rose to Ł18.6m in the 26 weeks to 3 July from Ł16.5m the same time a year earlier.
Services, maintenance and building group Interserve reported an expected drop in half-year profits but is confident the second half will show a significant uplift.
Housebuilders are under pressure after the latest survey from trade body RICS showed surveyors are seeing house prices fall for the first time since July 2009. Few buyers and a rush of new properties onto the market are blamed. Persimmon, Tayor Wimpey, Bellway and Bovis are all under pressure.
The UK's biggest car dealer Pendragon almost tripled interim pre-tax profit as demand at its aftersales and used car operations steps up a gear.
source:digitallook
No comments:
Post a Comment