Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Royal Mail
Royal Mail LON:RMG has announced that it is seeking a high court injunction over the planned industrial action being threatened by unions. The company has identified irregularities in the polling process and with disruption set to hit the peak Christmas rush, a successful intervention here could provide the share price with a meaningful boost. The expectation is this application will be heard by the court next week.
Beazley
Insurers Beazley LON:BEZ have published a trading update for the first nine months of the year. Written premiums have increased 12% on the same period a year ago, although the company is being hit extensively for claims. Catastrophes in recent months are taking a toll and the full year combined ratio is now expected to be above 100%.
IAG
British Airways owner IAG LON:IAG will today hold a capital markets day and ahead of this has issued a statement containing key headlines from the event. Critically the growth of ASK (available seat kilometres) is being trimmed in the coming years, which in turn is forecast to impact EPS growth. On top of this, capex is set to be around 100% higher than previously announced, although there has also been an accounting change to how this figure is calculated. If investors read this as the company having been squeezed dry, forcing spend to now increase, the share price may come under some early pressure.
