The FTSE is putting its front foot forward this morning as miners rallied across the board following an increase in copper, silver and gold prices.
Airlines are also in the spot light after Ryanair profits beat forecasts and British Airways parent International Consolidated Airlines announced plans to buy Air Europa, Spain’s third-largest airline which connects Spain with parts of South America.
The airline sector is in a precarious position with high fuel costs and increasing wage demands making it very difficult for many airlines to remain profitable. Both Ryanair and IAG (LON:ICAG) are cases in point, in different ways. Ryanair has cut costs so far that it is regularly in friction either with staff of passengers. Air Europa is on the other end of the scale being one of the many carriers struggling to make enough profit and therefore becoming a takeover target.
Mothercare (LON:MTC) shares plunges 28%
Mother and baby chain Mothercare which has been teetering on the verge of collapse for many months has dropped 28% after it said it is about to go into administration. The move does not come as much of a surprise because the firm lost £36.3m last year and this year’s results continued to show the same grim picture. The sale of its Early Learning Centre earlier this year was not sufficient to stave of a decline in profits and now the company may end up closing stores which remain after a cull earlier this year.
Sterling flat as election battle lines are drawn
UK parties are drawing their battle lines ahead of the election of December 12 with Nigel Farage offering a Brexit pact to Conservatives but then saying he will not stand as a candidate after the PM rejected his proposal.
Labour also shot its opening arrow with Jeremy Corbyn’s election speech followed up by an election rally in Bristol. For the moment the currency markets are taking everything with a pinch of salt and the pound is weakening against the euro and the dollar.
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