- FTSE 100 up 1 point
- DG Innovate latest to exit London
- Miners among risers
8.40am: Wizz Air forecasts further groundings over P&W engine issues
Wizz Air Holdings PLC (AIM:WIZZ) has said around 40 of its aircraft are expected to remain grounded over the coming fiscal year due to issues with Pratt & Whitney engines.
FTSE 250-listed Wizz on Tuesday said an agreement had been reached over commercial support from P&W over the issues to cover direct costs of groundings until late 2026.
Several of its Airbus A320neo aircraft have faced being taken out of service as suspected powder metal issues in P&W’s PW1100G-JM geared turbofan engines are addressed.
Wizz in November reported a fleet size of 224 aircraft, with the company noting on Tuesday that groundings would continue throughout the 2026 fiscal year, but that it would also return to growth as 50 new Airbus deliveries were taken.
“The commercial support from Pratt & Whitney […] includes both operational support and a compensation package covering the company’s direct costs associated with the aircraft that have been grounded or are expected to be grounded,” it added.
Shares ticked up 0.5% on Tuesday.
8.23am: Stocks open off the mark
London’s blue chips headed lower as the year’s final day of trading got underway on Tuesday.
The FTSE 100 dipped seven points to 8,113 early on, adding to a decline seen through Monday.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) topped the early risers with a 1.4% gain as precious metals peer Fresnillo PLC (LSE:FRES) also gained.
Ashtead Group PLC (LSE:AHT) led the fallers in the meantime in the absence of any major movers, dropping 1.1%.
8.15am: Defence firms set for dealmaking surge
BAE Systems PLC (LSE:BA.) and defence sector rivals are expected to ramp up dealmaking ahead as global conflicts drive cash flow and demand for new technologies.
According to Financial Times-cited analysis by Vertical Research Partners, the world’s 15 largest defence companies are on course for free cash flow of around US$50 billion (£39.8 billion) in 2026.
This would mark almost double their combined cash flow as of late 2021, prompting speculation over a boom in deal activity across the sector ahead.
“Many companies are looking to expand what they offer to get ready for advanced technologies,” Bain & Co consultants partner Michael Sion told the Financial Times, pointing to the likes of space products and defence electronics.
He added modernisation of defence systems, accelerated by the likes of war in Ukraine, left new opportunities for private equity firms across the sector after venture capital deals in the defence sector had jumped 18-fold over the past decade, according to Bain… Read more
7.46am: DG Innovate latest to ditch London listing
DG Innovate PLC (LSE:DGI) (DGI) has signalled its departure from the London Stock Exchange, capping off a tough year for the market.
Sustainable mobility and energy storage solutions firm DGI on Tuesday said it had struggled to raise funds for investments since coming to the market in early 2022.
“This is in part due to its current listing and the constraints of the associated prospectus rules,” the company said in a statement.
“However, it is also clear that there has been and remains a broad lack of demand for exposure to companies at DGI’s current stage of development within the UK’s traditional institutional investor base.”
Some 88 firms had ditched their primary listings on London’s main market by mid-December, while 18 took their place, marking the largest net outflow since 2009, according to the London Stock Exchange Group.
DGI added there were no “obvious near-term catalysts” to improve conditions and that the likes of costs were “completely disproportionate” to the benefits of maintaining a listing… Read more
7.09am: Stocks set to drop further
London’s blue chips were on course to fall further ahead of New Year’s Eve’s shortened trading session.
Futures had the FTSE 100 shedding 16 points to sit at 8,118 after the index fell by 28 points during the course of Monday.
A year-end sell-off had hit US stocks on Monday, prompting the Dow Jones to drop by 1% as the S&P 500 and Nasdaq fell by 1.1% and 1.2% respectively.
Asian markets also largely fell into the red overnight, with Hong Kong’s Hang Seng the only riser, up 0.1%.