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UK economic data and corporate earnings in focus for May 1
As May begins, attention turns to key UK economic data, including manufacturing and bank lending figures. Lloyds Banking Group shares have surged by a third this year, while the London Stock Exchange Group approaches its all-time high, contrasting with Whitbread's 15% decline. After US markets close, earnings reports from Apple and Amazon will be scrutinized for insights on tariff impacts.
uk corporate earnings week ahead featuring major banks and tech giants
The upcoming week will see significant corporate earnings reports from major UK firms like AstraZeneca, HSBC, and Shell, alongside tech giants such as Apple and Microsoft. Key economic data, including US non-farm payrolls and various PMIs, will also be released, influencing market sentiment. Investors are particularly focused on the impact of US tariffs and global economic conditions on these companies' performances.
Deutsche Bank lowers Whitbread price target but maintains buy rating
Deutsche Bank has lowered its price target for Whitbread PLC to GBP37.50 from GBP41.50 while maintaining a Buy rating, citing weaker-than-expected performance data for March and a negative forecast for April. The revised outlook includes a -2% assumption for Revenue per Available Room (RevPAR) and an approximate 8% downgrade in Earnings Per Share (EPS) for Fiscal Year 2026. Despite a year-to-date decline of 15%, the stock's valuation remains attractive, with a Fiscal Year 2026 P/E ratio of 12.3 times, suggesting potential for volatility as investors assess the company's prospects.
London stock market shows signs of recovery amid potential IPO surge
The London Stock Exchange is showing signs of recovery after a tough 2024, with major listings like Greek firm Metlen and Chinese retailer Shein on the horizon. Despite a decline in IPO activity, recent regulatory reforms and political stability are boosting market confidence, positioning London to regain its status as a global financial hub. Analysts are also identifying potential takeover targets, including ITV and Burberry, as the market prepares for a pivotal 2025.
hospitality sector warns of job cuts due to tax hike plans
The UK hospitality sector is warning that a proposed tax hike could lead to significant job cuts and potential business closures. Over 200 industry leaders, including executives from Whitbread and Fuller, Smith & Turner, have signed a letter expressing concerns that changes to national insurance contributions and the national minimum wage could cost the sector £3.4 billion annually.
travel stocks rebound as industry recovers from pandemic challenges
The travel industry is rebounding strongly post-pandemic, with global tourism projected to contribute $9.5 trillion to the economy. Key stocks to watch include IAG and Ryanair in airlines, IHG and Whitbread in hospitality, and Booking Holdings and Trainline in online travel. Factors like economic conditions and fuel prices will influence future performance.
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