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- FTSE 100 firmer but off highs, up 18 points
- Lloyds falls despite strong first quarter profits
- Flutter Entertainment flat despite strong revenue growth
Pfizer to start selling Haleon shares
Alongside its trading update, Haleon PLC (LON:HLN) was in focus after comments from Pfizer (NYSE:PFE) yesterday which said it would begin offloading its 32% stake in the consumer health business as it focuses on reducing debt linked to its US$43bn acquisition of Seagen and boosting returns to shareholders.
Dave Denton, Pfizer’s chief financial officer, told the Financial Times the company would begin selling down the holding within months in a “slow and methodical” manner so it does not undermine Haleon’s market valuation.
“We love the Haleon business but it’s not strategic,” said Denton.
GSK and Pfizer combined their consumer healthcare businesses in a joint venture in 2019 that sat within GSK (LON:GSK) before it was spun off via a listing on the London Stock Exchange.
The listing created the world’s biggest pureplay consumer health company with a valuation of £30.5bn. The transaction left GSK and Pfizer holding 13.5% and 32% of the shares, respectively
RyanAir enjoys third busiest month ever
Ryanair Holdings PLC (LON:RYA), the Dublin-based budget airline, carried 16.0mln passengers in April, up 13% from 14.2ln in April last year and up 27% from March this year making it the third busiest month ever.
This is only the third time it’s flown at least 16mln passengers in a month; last July and August it carried 16.8mln and 16.9mln passengers respectively.
The airline said this April was hurt by strikes by French air traffic controllers, resulting in more than 650 flights with 118,000 passengers being cancelled, while April last year was hurt by Russia's invasion of Ukraine.
The load factor last month was 94%, up from 91% a year before and 93% from March.
FTSE firms, banks steady after US nerves
The FTSE 100 is holding in the green but investors will have one eye on the US rate call after the close today while the European Central Bank makes its latest monetary rate decision tomorrow.
Susannah Streeter at Hargreaves Lansdown (LON:HRGV) said: “Caution is set to take centre stage ahead of the Fed’s interest rate decision later, as investors mull what’s ahead for the mighty US economy.”
“Worries have ratcheted up again that a maelstrom of problems are lurking within regional banks and that there could be another breakage as interest rates are set to be hiked again.”
Those concerns saw shares in a number of US regional banks come under pressure in the US on Tuesday.
The mood amongst UK banks was brighter as strong results from Lloyds Banking Group PLC (LON:LLOY).
First quarter profit from the high street lender topped City expectations and shares held small gains of 0.2%. Shares in Barclays (LON:BARC) and NatWest (LON:NWG) also held modest gains.
Matt Britzman, equity analyst at Hargreaves Lansdown said: "Lloyds continues the trend of major UK banks outperforming analyst consensus as impairment charges set aside for loan defaults were lower than feared."
"Lloyds is a good barometer for the overall health of the UK consumer and its smaller businesses, and they're proving remarkably resilient in the face of mounting cost pressures."
HSBC (LON:HSBA) rose 1.2% after positive comments on its results yesterday.
Deutsche Bank (ETR:DBKGn) increased its price target to 1,000p from 880p and reiterated a buy rating.
Analyst Robert Noble said: “HSBC offers consistent, unparalleled capital return over the next three years-greater, we believe, than the market expects.”
HSBC is a Top Pick among European banks he said.