IAG eyes profitability in Q2, Beazley gross premiums written grow in Q1

London pre-open

The FTSE 100 was being called to open 17.5 points lower ahead of the bell on Friday after closing just 0.13% higher in the previous session at 7,503.27.

Stocks to watch

British Airways owner IAG said on Friday that it expects to turn profitable from the second quarter of 2022 as it reported narrowed losses in the first three months of the year amid a recovery in passenger demand from the Covid pandemic.

The London-listed company, which also owns Aer Lingus and Iberia, posted an operating loss of €731.0m in Q1 compared with a loss of €1.07bn at the same point a year earlier.

Insurance company Beazley said on Friday that 2022 had "started well", with both gross premiums written and premium rates on renewal business increasing in the first quarter.

Beazley stated gross premiums written had increased by 27% to $1.22bn, while premium rates on renewal business increased by 17% year-on-year - ahead of 2021's 16% Q1 growth. Year-to-date claims were also said to be "better than expected" but the FTSE 100-listed firm highlighted that its investments lost $92.0m in the first quarter, as US Treasury yields recorded their largest quarterly increase in more than forty years, resulting in "significant losses" in Beazley's fixed income investments.

Newspaper round-up

A new tech watchdog will be given the power to impose multibillion-pound fines on major firms such as Google and Facebook if they breach rules designed to protect consumers and businesses. The Digital Markets Unit will protect small businesses from predatory practices and will give consumers greater control over how their data is used, the government said. - Guardian

Todd Boehly's consortium's bid to buy Chelsea is now expected to be put forward for Premier League and government approval. On the day that Roman Abramovich denied he wants his £1.6bn loan to Chelsea repaid, the likelihood of the Boehly bid being successful moved a step closer. - Guardian

Ministers are to pit homeowners against property developers in housing reforms to tackle "generation rent" to be signalled in the Queen's Speech. In a shake-up inspired by the sale of council houses under Margaret Thatcher, 2.5m households in England who rent properties from housing associations will be given the power to purchase their homes at a discounted price. - Telegraph

McColl's is close to calling in administrators as the convenience store chain teeters on the brink of becoming one of Britain's biggest retail failures with 16,000 jobs at risk. The retailer insisted no decision had been made and it was still in talks to secure emergency cash to keep it afloat. - Telegraph

KPMG has fired the latest shot in the professional services sector's battle for talent by giving all its rank-and-file staff in the UK a pay rise of at least £2,000. Some workers will receive a flat pay increase of £2,000, but others will get a £4,000 rise. The new salaries will be backdated to April and are in addition to the Big Four accountancy firm's annual pay review in October. KPMG said the pay rises would be given only to its 15,800 UK employees and not to the 766 partners and associate partners. - The Times

US close

Major indices closed sharply lower on Thursday as market participants continued to digest the Federal Reserve's move to raise interest rates by half a point.

At the close, the Dow Jones Industrial Average was down 3.12% at 32,997.97, while the S&P 500 was 3.56% softer at 4,146.87 and the Nasdaq Composite came out the gate 4.99% weaker at 12,317.69.