FTSE 100 movers: IAG flies higher but RBS retreats on results
London's FTSE 100 was down 1.7% to 6,885.40 in afternoon trade on Friday as heavy falls for RBS and Rolls-Royce and disappointing earnings from US tech stocks weighed.
Paddy Power was the standout gainer, possibly on read-across from an Investec upgrade of 888 Holdings.
British Airways and Iberia parent IAG flew higher as its third-quarter operating profit and revenue beat estimates.
Russ Mould, investment director at AJ Bell, said: "Given the numerous headwinds facing British Airways owner International Consolidated Airlines today’s third quarter update from the company has to be considered a minor triumph.
"Profit was strong and just ahead of consensus forecasts as the company kept tight control on non-fuel costs and was able to push through higher fares.
"The company has also hedged its exposure to fuel prices and this combination of factors should enable it to join a select grouping of airlines which will grow profit in 2018. A feat achieved despite the significant increase in crude oil prices that is pushing up the price of jet fuel."
Budget airline easyJet was also in the green.
Burberry gained ground as HSBC downgraded its stance on the luxury fashion brand to 'hold' from 'reduce' citing a better risk/reward following the steep de-rating of the sector and the shares themselves.
On the downside, Rolls-Royce was down but well off earlier lows after backing its 2018 guidance as the aerospace and defence giant confirmed that it expects to deliver fewer Trent 7000 engines in the fourth quarter than originally planned due to early stage production ramp-up challenges, the company said.
"As a result, we are likely to fall short of our prior engine delivery projection of approximately 550 large engine deliveries for 2018, and are now expecting to deliver approximately 500 engines.
"While we regret the impact this will have on our customers, we are today re-iterating our financial guidance for 2018 profit and free cash flow as provided at the time of our interim results in August 2018."
Royal Bank of Scotland declined as third-quarter attributable profit of £448m came in short of City consensus of £507m and the bank warned of a more uncertain outlook.
FTSE 100 - Risers
Paddy Power Betfair (PPB) 6,545.00p 2.51%
Rentokil Initial (RTO) 298.02p 1.44%
International Consolidated Airlines Group SA (CDI) (IAG) 594.00p 1.12%
British American Tobacco (BATS) 3,638.50p 0.85%
Diageo (DGE) 2,702.50p 0.75%
Burberry Group (BRBY) 1,729.50p 0.70%
CRH (CRH) 2,150.00p 0.61%
easyJet (EZJ) 1,176.50p 0.60%
Associated British Foods (ABF) 2,364.00p 0.55%
United Utilities Group (UU.) 721.20p 0.53%
FTSE 100 - Fallers
Evraz (EVR) 492.00p -8.38%
Ocado Group (OCDO) 779.60p -5.34%
Rolls-Royce Holdings (RR.) 836.80p -4.04%
Royal Bank of Scotland Group (RBS) 225.30p -3.92%
WPP (WPP) 876.40p -3.78%
BP (BP.) 518.00p -3.27%
Micro Focus International (MCRO) 1,206.00p -3.17%
BT Group (BT.A) 233.05p -3.12%
Smith (DS) (SMDS) 366.45p -2.90%
TUI AG Reg Shs (DI) (TUI) 1,269.50p -2.83%