LONDON MARKETS: British Airways Parent's Stock Drop Helps Pull FTSE 100 Lower
May 30 2017 - 4:43AM
Dow Jones News
By Sara Sjolin, MarketWatch
Banks drop on Italian election concerns
U.K. stocks returned from the long bank holiday week with sharp
losses, led lower in part by a dlise for International Consolidated
Airlines Group SA after a major IT glitch at British Airways.
The FTSE 100 index dropped 0.5% to 7,507.88, on track for its
first loss in four sessions. The London market was closed for trade
on Monday due to a holiday.
Shares of IAG (IAG.LN) (IAG.LN) posted one of the biggest
losses, down 3% after hundreds of British Airways flights were
grounded over the weekend due to a far-reaching computer failure.
Spanish-listed IAG shares (IAG.LN) rose 0.8% after sliding 2.8% in
Monday's trade.
The airline said Tuesday it was back to a full schedule at
London's Heathrow and Gatwick airports.
Analysts at Citigroup estimated that the IT problems could cost
British Airways around EUR100 million
(http://www.marketwatch.com/story/the-bill-for-british-airwayss-it-carnage-111-million-citi-estimates-2017-05-29)
($111 million) for the IT problems, comprised of EUR40 million in
lost revenue and EUR60 million in customer compensation.
Banks were also adding pressure in London, tracking losses for
their European counterparts on fears of an early election in Italy.
Italians will head to the polls no later than the spring of 2018,
but Matteo Renzi, the leader of Italy's ruling centre-left
Democratic party, said in a weekend interview that it would make
sense to have the vote in September, when a German election is also
planned.
Shares of Barclays PLC (BCS) (BCS) fell 1.3%, HSBC Holdings PLC
(HSBA.LN) (HSBA.LN) (HSBA.LN) gave up 0.6% and Lloyds Banking Group
PLC (LLOY.LN) (LLOY.LN) slipped 0.4%.
Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) dropped 0.9%
after a group of investors on Monday accepted a GBP200 million
settlement from the bank. The settlement ends a long legal fight
over allegations RBS misled the investors in the run-up to the
lender's government bailout during the financial crisis.
(END) Dow Jones Newswires
May 30, 2017 04:28 ET (08:28 GMT)
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