Defence industry reverses early European share decline
Despite signs of a concurrent decline for the European benchmark, surging defence and industry stocks aided in the index closing higher on Thursday.
Corporate earnings reports remained in the spotlight and the continentwide Stoxx 600 index was up 0.6 per cent
DUBLIN
The Iseq All-Share index ended the session down 0.35 per cent, or 39.13, to 11,124.21.
READ MORE
Strong performances by defensive stocks such as Glanbia, up 1.09 per cent to €12.08, and Kerry Group, up 1.03 per cent to €93.60, were not enough to keep the index in the green. Healthcare group Uniphar rose 3.03 per cent to €3.40.
Kenmare Resources rose 1.31 per cent to €4.64 following its agm where the company said its former managing director, Michael Carvill and an Abu Dhabi private equity firm have been given a second extension to announce a firm intention to make a bid for the business.
Insulation group Kingspan saw the biggest fall on the day, dropping 3.43 per cent to €77.50.
Datalex, the Dublin-listed retail software provider to airlines, fell 2.86 per cent after the group said its loss before interest, tax, depreciation and amortisation widened 7 per cent last year to $3.1 million (€2.76 million).
Budget airliner Ryanair rose 0.89 per cent to €22.70, with the highest turnover and volume on the market.
LONDON
British stocks ended higher on Thursday after stronger domestic GDP data, while investors assessed mixed corporate earnings.
The blue-chip FTSE 100 rose 0.6 per cent, while the domestically focused FTSE 250 gained 0.1 per cent.
Britain's economy grew more strongly than expected in the first quarter of 2025, providing a boost to the government and finance minister Rachel Reeves.
Last week, the Bank of England's surprisingly hawkish stance slashed June rate cut expectations, with markets now anticipating quarterly rather than consecutive cuts.
Hikma Pharmaceuticals gained 7.4 per cent, the most among FTSE 100 stocks, after the British drugmaker introduced a five-year revenue target of £5 billion in 2030.
National Grid shares climbed 3 per cent after the renewable energy firm exceeded annual profit estimates.
Sports retailer JD Sports gained 1.4 per cent after reports that American retailer Dick's Sporting Goods was nearing a deal to buy rival Footlocker.
Keeping gains at check, the energy index fell 2.1 per cent, tracking lower oil prices on expectations of a US-Iran nuclear deal.
Sage fell 3.8 per cent and was among the top losers in the blue chip index, after the software company's North America revenue growth slowed.
EUROPE
The European benchmark rose 0.6 per cent with most regional indexes following suit, including Germany's which was up 0.7 per cent at the close.
Most defence stocks were higher, with Hensoldt up 8.8 per cent, Rheinmetall up 5.7 per cent and Leonardo gaining 4 per cent. The broader aerospace and defence index in Europe was up 2.3 per cent.
France's Engie, London's National Grid and United Utilities jumped after their quarterly reports and lifted the utilities sector 1.9 per cent.
Telecommunication stocks were the biggest gainers, helped by a 2.8 per cent increase in Deutsche Telekom after it reported first-quarter profit slightly above expectations.
Most sectors on the benchmark Stoxx 600 were higher, although a pullback in commodity prices weighed on resource-linked companies.
Big oil firms bore the brunt, with BP and Amsterdam-listed Shell shares falling 3.3 per cent and 1.5 per cent, respectively. The energy underperformed peers, falling 0.9 per cent.
Basic resources also incurred heavy losses as industrial metal prices moved lower.
NEW YORK
The S&P 500 teetered between gains and losses in mid afternoon trading on Thursday as elation from the US-China tariff truce tapered off, with UnitedHealth among the biggest losers after a report said the DoJ was investigating the insurer for fraud.
United Health Group plunged to a five-year low, dragging on other health insurers such as Humana and Molina Healthcare.
Executives at retail giant Walmart said the company would have to start raising prices later this month due to the high cost of tariffs, even as its first-quarter US comparable sales beat expectations. Its shares fell slightly after it also did not provide a second-quarter profit forecast.
Walmart joins a spate of companies across sectors that have either tweaked or pulled their forecasts, signalling that corporate United States is hunkering down for tariff-related uncertainties.
Megacap and growth stocks were marginally lower after falling earlier in the day, with Amazon trailing.
The energy sector declined as oil prices slid based on expectations of a US-Iran nuclear deal that could result in sanctions easing.
On the brighter side, Cisco Systems saw a leap after the networking-equipment maker raised its annual forecasts and named Mark Patterson its new CFO. – Additional reporting, Reuters, PA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
29 minutes ago
- Irish Examiner
Ryanair's Irish business being hampered 'by failed regulation and political inaction', says Michael O'Leary
Ryanair chief executive, Michael O'Leary, has stated that the airline's home market in Dublin is being hampered "by failed regulation and political inaction'. Mr O'Leary makes his comments in Ryanair's 2025 annual report which reveals that this year Mr O'Leary received a remuneration package of €3.83m that included bonus payments of €600,000. The report shows that in the 12 months to the end of March this year, Mr O'Leary received the maximum bonus possible of €600,000 or 50% of basic pay under his contract as Ryanair recorded pre-tax profits of €1.78bn on the back of revenues climbing to €13.94bn. The airline achieved the revenues as passenger numbers increased by 9% to a record 200 million for the first time. Mr O'Leary's pay package was made up of basic pay of €1.2m, a bonus payment of €600,000 and share options of €2.03m. A note attached to the accounts states that the €2.03m component is through the company recording a technical non-cash accounting charge in relation to share options granted to Mr O'Leary. The note states that no such payment was made to Mr O'Leary and the share options remain unvested. At the end of May, Mr O'Leary qualified for share options worth more than €100m as part of a bonus scheme and the 64-year-old will have to stay at Ryanair until the end of July 2028 to collect them. The annual report shows that, while overall Ryanair revenues increased by €505m or 3.75% to €13.94bn, its Irish revenues contracted by 4% from €791m to €757.5m. The airline's Irish business accounted for 5.4% of overall revenues as Italy was the airline's most lucrative market at €2.96bn, followed by Spain at €2.47bn and UK revenues at 2.04bn. Dublin Airport In his message to shareholders, Mr O'Leary said that the home market in Dublin is being 'hampered by failed regulation and political inaction'. He said that at Dublin Airport over €320m has been invested in a new second runway, which doubles the capacity from 32 million to over 60 million passengers per annum. He said that "Dublin's airlines are prevented from using this growth capacity, because an 18-year-old planning restriction artificially caps Dublin Airport traffic at 32 million per annum over fears (in 2007), that road access around Dublin Airport would be 'overwhelmed' at this volume of passengers". He said that Ireland's newly elected Government 'committed to removing this outdated traffic cap, yet three months later no action has been taken'. He said: Only in Ireland would we allow this vital access infrastructure to be built, but then refuse our airlines and citizens the ability to use it, due to bureaucratic failure to abolish an absurd and outdated planning restriction. "This is a clear example of the sort of regulatory failure, which the Draghi Report has encouraged Europe to reform and remove.' Booking verification The annual report also makes reference to the Data Protection Commission (DPC) here launching an inquiry into Ryanair's booking verification process last October. The report states that Ryanair has engaged with the DPC "explaining that its verification requirement is designed to ensure compliance with safety and security protocols, and that the process of verification fully complies with the requirements of the GDPR". The report says that the inquiry is expected to take at least one year "and while Ryanair is confident in its position, the DPC may ultimately find that the verification process has not fully complied with the GDPR, which could lead to the imposition of a substantial fine". Boeing planes In his message to shareholders, Mr O'Leary says that 'the biggest medium-term challenge we face, remains the risk to Boeing deliveries'. He said: 'While the final units of our 210 Boeing 737-8200 order were contracted to deliver in December 2024, at our March 2025 year end Boeing left us short 34 of these deliveries. 'We got five more in April but the remaining 29 are not expected to deliver until the second half of FY26, hopefully in time for summer 2026. The quality and timeliness of Boeing deliveries has recently improved under their new management, but this needs to be reflected in rising monthly production if Boeing is to erase its current delivery backlog.' Mr O'Leary says that over the next decade Ryanair hopes to buy 300 more Boeing MAX-10 aircraft, to grow to 300 million guests per annum and to create approximately 10,000 new jobs. The aggregate amount of compensation paid by Ryanair to its key management personnel was €14.7m including a €4.2m non-cash technical accounting charge in relation to unvested share options. In the 12 months to the end of March, the airline employed an average of 27,076 as staff costs totalled €1.75bn.
Irish Times
38 minutes ago
- Irish Times
Liquidators appointed to marketing company Frank&Bear amid alleged misappropriation of funds
Joint provisional liquidators have been appointed by the High Court to Dublin company Frank&Bear Limited, stated to be involved in a number of significant digital marketing campaigns in Ireland, the UK, Europe and the United States. Barrister Eoin Coffey told Mr Justice David Holland that the company, which employs 12 people, was unable to meet its debts and that two of its three directors were engaged in promoting a petition through the courts for the winding up of the firm. Mr Coffey, who appeared with Grace Armstrong of McCann Fitzgerald Solicitors , said the petition was being sought by directors Niamh Haughey and fellow director Michael Corcoran, a key member of the company's senior management team responsible for running a consultancy arm by the name of 'Frankly.' Counsel told the court that Ms Haughey, of Hollywood Grove, Newry, Co Down, had indicated in sworn written evidence opened to the court that director and financial controller David Connor of Ontario Terrace, Ranelagh , Dublin, had misappropriated approximately €1.75 million of company funds. READ MORE Ms Haughey said a forensic investigation had revealed that Connor had taken out company funds for renovations to his family home and also for the acquisition of a number of vehicles that had been applied to his personal use and for members of his family. She also stated that Connor owned a season ticket to a UK Premier League Club and had used company funds to finance family holidays. Mr Coffey told Judge Holland that Connor had also formed the opinion that the company should be wound up but was not co-operating with the appointment of joint provisional liquidators Dessie Morrow and Diarmaid Guthrie of Azets Ireland. Ms Haughey said Frank&Bear had been involved in a number of significant digital marketing campaigns throughout Ireland, the UK, Europe and the US and had provided consulting services to a number of well-known brands in the area of social media strategy and operations. She had met Mr Connor when she had commenced working for an unrelated digital marketing company in May 2016 when he was CEO and majority shareholder of that company which had also employed Mr Corcoran. In January 2020 she had been offered a role in a leading international agency and on Mr Connor having become aware of the offer he had suggested she turn it down, which she did, and go into business with him instead which she had done. Frank&Bear was a social media and digital marketing agency specialising in creating and managing online marketing campaigns to help businesses reach and engage their target audiences and increase revenue. The company operated fully remotely and did not own or lease any real property. To her knowledge the company had traded profitably for the period ending December 2022 but in April 2025 Mr Corcoran had been informed by a building contractor that they had carried out renovations to Mr Connor's personal property but had received payment for the works by Frank&Bear. This had led to the forensic investigation into the financial matters of the company and she stated there had been a complete breakdown in trust and confidence between Mr Connor and herself and Mr Corcoran. Mr Connor, who had refused to co-operate with the investigation, had been suspended on full pay. Both she and Mr Corcoran now believed the company should be wound up in the interest of employees and creditor. Judge Holland directed that Mr Morrow and Mr Guthrie be appointed joint provisional liquidators of Frand&Bear with power to take control of all property to which the company appeared to be entitled, including books and records and power to institute legal proceedings. The application was brought ex parte in the absence of any representation on behalf of the company and returned to July 7th.
Irish Times
an hour ago
- Irish Times
Upgrade of power system could spark €83 yearly increase in household electricity bills
Household electricity bills could increase by €83 per year to pay for an 'essential' upgrade of the country's power system, the chief executive of the Electricity Association of Ireland (EAI) has said. Dara Lynott said ESB Networks estimates it will need between €10 billion and €13.4 billion to upgrade the system over the next five years. ESB Networks has asked the Commission for Regulation of Utilities (CRU) to approve a price increase in order to facilitate this. It is estimated that such a price increase would result in household electricity bills increasing by at least €1.60 per week or about €83 per year. Mr Lynott said the investment is 'absolutely needed' and should be treated the same way as investing in any other 'essential' service, such as roads or water. READ MORE Mr Lynott said renewables such as wind, solar and hydropower currently provide about 40 per cent of electricity in Ireland. He said this figure needs to increase to 'reduce emissions' and improve the efficiency of the grid. He said a price increase of around €1.60 per week for electricity should be viewed 'in context', noting that people in Dublin regularly pay €3.75 for a cup of coffee 'if they're lucky'. 'That's not to say that the price increase won't be difficult for some people but there are measures that can be done by the Government to negate this, such as energy credits.' Mr Lynott said people over the age of 65 and single mothers with children under 18 are two cohorts most likely to feel the impact of a bill increase. He said the Government should consider giving these groups a free allotment of electricity units. He said universal credits are 'regressive' and the only way to tackle 'energy poverty' is with targeted measures such as electricity credits. [ Irish electricity prices, already Europe's highest, may rise further due to 'required investment' Opens in new window ] The Department of Social Protection provides a €35 monthly electricity allowance through the Household Benefits Package to help individuals with their energy bills. This allowance is paid directly into a person's bank account, so is not necessarily spent on energy bills, My Lynott noted. It was announced in Budget 2025 that all domestic electricity customers would get €250 off their electricity bills via two instalments of €125, as part of the Government's cost-of-living package. Similar measures had been announced in previous budgets. However, the Government has indicated that universal credits may not feature in the upcoming budget, potentially being replaced with more targeted measures. 'We're not going to have a cost-of-living package this year,' Taoiseach Micheál Martin said in February. The Irish Times has contacted ESB Networks, the Department of Social Protection and the Department of Climate, Energy and the Environment for comment.
