Markets await US inflation data and more clues about fresh Chinese stimulus measures
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, has looked at Tui.
Holidaymaker TUI delivered a strong finish to the year as full-year operating profits cruised ahead of market expectations. Consumers continue to prioritise travel, meaning more customers have been willing to pay higher prices to enjoy a break away from everyday life.
TUI owns an airline, cruise ships, hotels and resorts, giving more than 20 million customers the choice of over 180 destinations. In some ways, having a wide package holiday business makes it more defensible – there’s more to offer and a lot of cross-selling opportunities. But the drains on cash when you have planes, huge hotels and cruise ships to maintain and fill are enormous, so it was good to see occupancy rates across the business creep higher. Fewer empty rooms mean more efficiencies and higher profits.
Investors look set to show wariness ahead of a key inflation report due out in the US, while they await more detail about support for China’s struggling economy. The FTSE 100 is expected to open a little lower, as a wait-and-see mood prevails.
There’s hope in the air for more clues about China’s latest stimulus plan, which is helping lift markets mid-week. The FTSE is set to edge higher in morning trade as the Central Economic Work Conference begins with new targets expected to be laid out.
Oil prices have edged higher as the Israeli forces have attacked Syria’s naval fleet, amid the political vacuum following the collapse of the Assad regime. The uncertainty about what the future holds for the country, and the wider region has raised concerns about crude supplies. Expectations for firmer detail on China’s economic stimulus programme is also raising hopes of higher demand for energy in the world’s second-largest economy. Brent crude is nudging towards $73 a barrel, rising for the third session in a row.
Continue reading…Markets await US inflation data and more clues about fresh Chinese stimulus measuresAarin Chiekrie, equity analyst at Hargreaves Lansdown, has looked at Tui.Holidaymaker TUI delivered a strong finish to the year as full-year operating profits cruised ahead of market expectations. Consumers continue to prioritise travel, meaning more customers have been willing to pay higher prices to enjoy a break away from everyday life.TUI owns an airline, cruise ships, hotels and resorts, giving more than 20 million customers the choice of over 180 destinations. In some ways, having a wide package holiday business makes it more defensible – there’s more to offer and a lot of cross-selling opportunities. But the drains on cash when you have planes, huge hotels and cruise ships to maintain and fill are enormous, so it was good to see occupancy rates across the business creep higher. Fewer empty rooms mean more efficiencies and higher profits.Investors look set to show wariness ahead of a key inflation report due out in the US, while they await more detail about support for China’s struggling economy. The FTSE 100 is expected to open a little lower, as a wait-and-see mood prevails.There’s hope in the air for more clues about China’s latest stimulus plan, which is helping lift markets mid-week. The FTSE is set to edge higher in morning trade as the Central Economic Work Conference begins with new targets expected to be laid out.Oil prices have edged higher as the Israeli forces have attacked Syria’s naval fleet, amid the political vacuum following the collapse of the Assad regime. The uncertainty about what the future holds for the country, and the wider region has raised concerns about crude supplies. Expectations for firmer detail on China’s economic stimulus programme is also raising hopes of higher demand for energy in the world’s second-largest economy. Brent crude is nudging towards $73 a barrel, rising for the third session in a row. Continue reading…
