-- British stocks finished the trading week in the red, with the FTSE 100 down 0.43% on Friday's close, as markets assessed a fresh batch of corporate updates while awaiting the outcome of the UK elections.
"The UK's ruling Labour Party has suffered heavy losses as the results of council elections start to come in. Most areas are yet to declare results, including in the crucial Scottish and Welsh parliamentary elections. Some Labour figures are already out this morning calling on Prime Minister Starmer to go," ING analysts said. "Investors will be watching the cabinet closely for signs of pressure or even resignations, as markets weigh up the possibility of an increase in borrowing later this year under different leadership scenarios."
On the housing market front, average house prices in the country ticked down 0.1% month over month in April, following a 0.5% decline in March, data from Halifax showed. On an annual basis, average house prices were up 0.4%, against the 0.8% rise in the previous month.
In corporate news, Intertek Group (ITRK.L) rejected Swedish private equity giant EQT's takeover offer for the third time, saying the conditional proposal "significantly undervalues" the group and its prospects. EQT's latest improved offer of 58 pounds sterling per share for the British quality assurance provider comes after previously rejected proposals of 54 pounds per share and 51.50 pounds per share. The stock lost 2.70% at closing.
Meanwhile, International Consolidated Airlines Group's (IAG.L) total revenue grew 1.9% year over year to 7.18 billion euros in the first quarter, while after-tax profit surged to 301 million euros from 176 million euros. The group mainly attributed the growth to continued robust demand for its networks and airline brands. The British Airways owner's shares closed the trading session 2.83% lower.
"IAG have made a strong start to the year, although IAG's guidance/ commentary implies downside to FY26E EBIT. IAG expects to recover ~60% of higher fuel costs (~EUR1.9bn higher based on the forward curve on the 5 May) in FY26E through cost and revenue actions, which could suggest a decline in EBIT of ~EUR0.7bn to ~EUR0.8bn y/y in FY26E to EBIT of ~EUR4.2bn to EUR4.3bn in FY26E vs VA cons of EUR4.66bn," RBC Capital Markets said in a quick take note. "IAG trades at an attractive valuation, given its margin and return profile. Relatively high margins leave IAG's earnings less at risk to higher fuel costs than for some peers, and we think there is greater scope to pass on FY26E fuel headwinds in long-haul."