Pearson, IAG and Smith & Nephew

“The FTSE100 was down in early trading against a backdrop of lower crude oil lower and industrial metals prices. Investors will be looking to US non-farm payrolls and other employment data this afternoon while also assessing the upcoming second round of France's presidential election,” says AJ Bell Investment Director Russ Mould.

“Pearson’s shares soared as investors welcomed moves to cut costs by £300m a year and the possible sale of its US schools publishing arm which has been a thorn in the group’s side for several years. Pearson has issued five profit warnings in four years after students in the US started renting textbooks rather than buying them. The group is now looking to create a more scaleable and more digital business which is capable of growth and margin improvement. Pearson’s shares were up by more than 14.8% in early trading.

“British Airways’ parent International Consolidated Airlines Group was up an early riser following a record first quarter, traditionally its weakest three months of the year. Operating revenues rose by 9.7% to €170m and although revenues fell 2.8% to €4.9bn they remained ahead of forecasts. The group, in common with other airlines, was also buoyed by the latest fall in oil prices. IAG’s shares were up by over 5.6%.

“Medical equipment manufacturer Smith & Nephew was among the best performing FTSE100 companies in early trading after confirming that it was on track to deliver full-year underlying revenue growth of 3-4%. The company has seen a return to double-digit growth in emerging markets with China up 14% on an underlying basis.”

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