US Fed hints at June rate rise

The US Federal Reserve have hinted that a rate rise could be on the cards in June, if economic date remains strong.

The minutes from the committee’s latest meeting suggest the Fed are confident inflation is moving towards its 2 percent target, and a rate rise may follow. However, they mentioned the threat of external factors – including the EU referendum, which will fall a week after the Fed’s next meeting.

Royal Mail beats expectations on cost-cutting measures

The bank has kept interest rates between 0.25 percent and 0.5 percent since December, its first rate rise in nearly a decade.

Royal Mail delivered slightly better-than-expected results this morning, showing the group’s cost-cutting measures are beginning to take effect.

Adjusted operating profit before transformational costs rose 5 percent to £742 million in the year ended March 27, but pre-tax profit fell 33 percent to £267 million. An increase in parcel revenue was offset by a a decline in letter delivery.

Royal Mail shares have fallen 2.85 percent to 493.50 (0836GMT).

Thomas Cook shares take plunge over fall in Turkish holidays

Tour operator Thomas Cook saw shares plunge over 17 percent this morning, after its summer figures were hit by a decline in bookings to Turkey.

Summer bookings were down 5 percent in the first half of the year, but revenue grew to £2.67 billion. Its underlying operating loss rose by 5 percent to £163 million pounds, due to higher margins on package holidays.

Thomas Cook are currently trading down 17.93 percent at 73.45 (0845GMT).

19/05/2016