Source: Sharecast
Stocks to watch
British Airways owner IAG on Friday reported a better-than-expected jump in annual profits after doubling earnings in the final quarter, driven by “robust” leisure travel and said it planned to return a further €1bn to shareholders. Adjusted operating profit rose 26% to €4.4bn, beating estimates of €4.08bn.
Weir Group reported a 9% improvement in full-year adjusted operating profit in its final results on Friday, to £472m, despite revenue for 2024 narrowing by 1% to £2.51bn. The FTSE 100 company also announced an agreement to acquire mining software specialist Micromine for £657m, in a deal expected to close in the second quarter. It said it would fund the purchase through existing cash and new debt, with net debt-to-EBITDA anticipated to remain below 2x by the end of 2025 and declining further in 2026.
Newspaper round-up
Almost half of councils in England risk falling into bankruptcy without action to address a £4.6bn deficit amassed under a Conservative-era policy, the government’s spending watchdog has warned. In a damning report, the National Audit Office said that rising pressure on public services and repeated delays to reform the funding of local government meant town halls were in an “unsustainable” financial position. – Guardian
The annual pay of GSK’s chief executive could rise to nearly £22m in three years’ time as the pharmaceutical company attempts to offer US-style pay packets to top executives. Emma Walmsley’s package could increase to a maximum of £21.56m if the company’s share price rises by at least 50% and it hits stretching targets, according to its annual report. – Guardian
The boss of a multibillion-pound hotel group has blamed Labour for his decision to slow investment in Britain and focus overseas instead. Greg Hegarty, the co-chief executive of PPHE Hotel Group, which runs the Park Plaza and art’otel brands, said he was prioritising countries such as Spain and Italy over the UK because of the Government’s economic policies. – Telegraph
Sir Keir Starmer met Donald Trump in the Oval Office on Thursday to discuss everything from Ukraine to trade deals. The Prime Minister smoothed the way with a letter from King Charles personally inviting the US president for a state visit. No date has been confirmed. Yet officials would do well to make sure it is not in May. - Telegraph
Business confidence bounced back to a post-election high this month, driven by rising optimism about the state of the economy. A monthly survey of 1,200 UK companies reported a 12-point jump in sentiment in February to the highest level since August 2024 — the aftermath of Labour’s election victory, according to Lloyds Banking Group. – The Times
US close
Major indices closed lower on Thursday following earnings from AI-darling Nvidia overnight and an update from Donald Trump regarding his proposed tariffs on a number of America's largest trading partners.
At the close, the Dow Jones Industrial Average was down 0.45% at 43,239.50, while the S&P 500 lost 1.59% to 5,861.57 and the Nasdaq Composite saw out the session 2.78% weaker at 18,544.42.
The Dow closed 193.62 points lower on Thursday, taking a significant bite out of gains recorded in the previous session.
Trump said on Thursday that his proposed tariffs on Mexico and Canada would come into effect on 4 March and also stated that Chinese imports would be hit with an additional 10% tariff.
Trump's sweeping 25% tariffs on imports from Mexico and Canada were put on a one-month pause back on 3 February.
