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Aug. 14, 2014, 12:18 p.m. EDT

TUI Travel climbs on FTSE 100; Glencore downgraded

FTSE rises 0.4%

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By Carla Mozee, MarketWatch

LONDON (MarketWatch) — TUI Travel PLC cruised higher Thursday, nearly topping the FTSE 100 benchmark, after its majority shareholder issued an upbeat profit outlook.

TUI Travel  shares climbed 2.2% after German-listed TUI AG /zigman2/quotes/206714402/delayed DE:TUI1 +2.58%  said growth in full-year earnings before interest, taxes and amortization should come in “at least at the upper end” of its forecast. Growth for underlying profit is being targeted at 6% to 12%.

TUI AG said growth at TUI Travel’s hotels & resorts and cruises segments and strength in the key German and U.K. markets contributed to an 89% rise in group underlying profit to 163 million euros ($218.33 million) in the third quarter. TUI Travel in June agreed to merge with TUI AG, its biggest shareholder, in an all-stock deal that TUI AG said remains on track.

Shares of cruise operator Carnival PLC /zigman2/quotes/210414141/delayed UK:CCL +4.53%  also rose, by 0.4%.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.34%  gained 0.4% to 6,685.26 after a flat start to the session. The benchmark added 0.4% on Wednesday, boosted by fading prospects of an early interest-rate increase by the Bank of England.

On Thursday, a ratings upgrade for British Land Co. /zigman2/quotes/210491538/delayed UK:BLND -0.77%   to buy at Bank of America Merrill Lynch pushed shares of the property investment firm 2.5% higher.

Also advancing were shares of banking firm HSBC /zigman2/quotes/203901799/delayed UK:HSBA -1.17% and Royal Mail PLC /zigman2/quotes/204213037/delayed UK:RMG +0.42% , by 2.1% and 1.7%, respectively.

But shares of Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN -0.94%  fell 1.3% following a downgrade to neutral from outperform at Credit Suisse, which cited fading momentum and valuation as reason for the move.

On the FTSE 250 index, shares in Carillion PLC /zigman2/quotes/208402800/delayed UK:CLLN -28.95%   jumped 8.4% after the construction and support services firm laid out its business plan for a merger with Balfour Beatty /zigman2/quotes/202863772/delayed UK:BBY +0.27%  , signaling it is still pursuing the deal. Shares in Balfour Beatty rose 1.5%.

Carillion has now outlined “a credible road map on the merger and how it would achieve the £175 million reduction in the cost base and the associated costs. Balfour Beatty’s board talks about a series of theoretical cost reduction opportunities,” said Investec Securities analyst Andrew Gibb in a note to clients Thursday.

“A standalone Balfour Beatty does not look attractive, the Carillion deal does,” he wrote.

In the currency market, the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0157%  bought $1.6691, down from $1.6695 late Wednesday.

/zigman2/quotes/206714402/delayed
DE : Germany: Frankfurt
3.02
+0.08 +2.58%
Volume: 42,044
Sept. 25, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€282,968
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/zigman2/quotes/210414141/delayed
UK : U.K.: London
918.60 p
+39.80 +4.53%
Volume: 1.92M
Sept. 25, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£7.87 billion
Rev. per Employee
N/A
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
5,842.67
+19.89 +0.34%
Volume: 699,068
Sept. 25, 2020 4:57p
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/zigman2/quotes/210491538/delayed
UK : U.K.: London
322.00 p
-2.50 -0.77%
Volume: 3.92M
Sept. 25, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.01 billion
Rev. per Employee
N/A
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/zigman2/quotes/203901799/delayed
UK : U.K.: London
283.35 p
-3.35 -1.17%
Volume: 22.77M
Sept. 25, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£58.39 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204213037/delayed
UK : U.K.: London
241.00 p
+1.00 +0.42%
Volume: 1.76M
Sept. 25, 2020 4:35p
P/E Ratio
14.98
Dividend Yield
0.00%
Market Cap
£2.40 billion
Rev. per Employee
£63,484
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/zigman2/quotes/201400686/delayed
UK : U.K.: London
167.38 p
-1.58 -0.94%
Volume: 16.44M
Sept. 25, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£20.21 billion
Rev. per Employee
£1.04M
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/zigman2/quotes/208402800/delayed
UK : U.K.: London
14.20 p
-5.79 -28.95%
Volume: 46.31M
Jan. 12, 2018 12:00a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/202863772/delayed
UK : U.K.: London
222.80 p
+0.60 +0.27%
Volume: 859,272
Sept. 25, 2020 4:35p
P/E Ratio
14.76
Dividend Yield
0.94%
Market Cap
£1.53 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2746
+0.0002 +0.0157%
Volume: 0.0000
Sept. 25, 2020 4:59p
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Carla Mozee is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

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