New boss for Royal Mail owner, postal revenues lower
Royal Mail has a new boss after its parent company International Distributions Services (IDS) promoted Martin Seidenberg to become group chief executive.
He currently runs the Europe-based logistics business GLS, which accounts for 40% of group revenue and has delivered significant profit during his time in charge.
One of his first tasks will be appointment of a new Royal Mail chief executive to take the postal firm forward after it recently settled a long-running pay dispute.
Today’s boardroom developments were announced alongside a trading update showing that Royal Mail revenues fell 4% to £1.8 billion in the three months to 30 June. GLS rose 7.4% to £1.2 billion.
IDS said Royal Mail addressed letter volumes were more robust than expected, but added that their 30% decline since the pandemic highlighted the need for Ofcom and Government to take urgent action to reform the Universal Service.
Netflix and Tesla shares lower, FTSE 100 seen flat
Wall Street’s tech sector is under pressure after updates by Netflix and Tesla left their shares sharply lower in dealings following last night’s closing bell.
The electric car maker fell 4% despite a 47% jump in second quarter revenues, with investors focused on the weaker outlook for margins.
Streaming giant Netflix missed sales estimates for the quarter and gave lower-than-expected guidance for the current period, sending its shares 8% lower.
The updates left future markets in the US pointing lower after yesterday’s positive session, when the S&P 500 index rose for a third day in the row to set a fresh 15-month high.
London shares delivered the strongest performance on Wednesday after interest rate expectations were revised lower on the back of June’s softer inflation reading of 7.9%.
A weaker pound contributed to the FTSE 100 index rising 1.8% to 7588, while the UK-focused FTSE 250 jumped 3.8%. Today’s session is likely to be less interesting, with IG Index forecasting a flat start for the FTSE 100.
Easyjet profits soar past expectations as it looks to expand aircraft fleet
Easyjet is preparing to expand its aircraft fleet to deliver future growth as it posted a surge in profits that beat expectations.
The airline said it currently has 163 aircraft on order for delivery though to 2028, but was now “running a process to secure additional firm order positions for our longer-term fleet plan.”
Pretax profits hit £203 million in the three months to the end of June, turning around a loss of £114 million in the previous year and coming in well ahead of City expectations of around £160 million.
Revenue swelled 34% to £2.36 billion, while full-year profits were on course to hit a fresh record.
(David Parry/PA)
/ PA ArchiveMorning refresh: What you need to know to start the day
Good morning from the City desk of the Evening Standard.
Tesla shares slipped back around 4% in after-market trading overnight, after profitability slid in the second quarter and investors prepared for it to fall further after Elon Musk said he expected to continue to cut the prices of electric vehicles if interest rate rises persist.
But Musk insisted the smaller profits were a blip and the company could one day be as much as ten times its current size.
Here’s a summary of our top headlines from yesterday:
Inflation fell more than expected in June, falling below 8% for the first time in a year. City analysts revised down their bets for interest rate peaks and the pound slipped back against the dollar as a result.
One of the biggest tech deals in history, between Broadcom and VMware, was provisionally given the green light by the UK competition regulator.
Jaguar Land Rover owner Tata confirmed speculation that it was planning a new battery giga-factory in Somerset after announcing a £4 billion investment.
This morning we’re also expecting trading updates from airline easyjet, winemaker Chapel Down and international defence company Babcock. In the afternoon, we’ll report on earnings numbers from private equity giant Blackstone and pharma firm Johnson & Johnson.