MARKET REPORT: Cruise company Carnival crashes to record low

Cruise company Carnival plunged to an all-time low after warning it could face further losses as the cost of fuel and other supplies soared.

The company, whose operations include P&O Cruises and Cunard, the cruise line behind the ships Queen Mary 2, Queen Elizabeth and Queen Victoria, dashed hopes of a return to profit in the fourth quarter of the year.

Sky-high inflation has hammered an industry that has been losing money since the pandemic broke out in 2020.

Carnival posted a loss of £690 million in the third quarter, despite a sharp increase in revenues to £3.9 billion, and warned of another loss in the last three months of the year.

Shares fell 21.3 percent, or 157p, to 581.8p – the lowest level since it began trading on the London stock market more than two decades ago.

To top it all off for the travel industry, Tui fell 10.1 percent, or 12.15 pence, to 108.15 pence after analysts at UBS lowered its price target from 155p to 99 pence.

At the end of another turbulent week in the financial markets, the FTSE 100 rose 0.18 percent or 12.22 points to 6893.81 and the FTSE 250 rose 2.25 percent or 377.94 points to 17,168.34. In a much-needed hiatus, figures from the Office for National Statistics showed the UK economy grew by 0.2 percent in the three months to June, an improvement from earlier estimates of a 0.1 percent decline.

Polymer maker Synthomer recovered its losses a day after a profit warning, up 18.3 percent, or 16.45 pence, to 106.5 pence, after a 35 percent drop in the previous session.

The chief of insurance group Aviva bought more than £103,000 worth of shares in BP less than a month after joining the oil giant’s board. Amanda Blanc, who became a non-executive director on September 1, purchased 23,500 shares at 439 pence each. Aviva rose 2.7 percent or 10.2p to 388.2p, while BP added 0.2 percent or 1.05p to 433.1p.

Hikma Pharmaceuticals said it remained committed to meeting its gender diversity targets, while expanding its board to include two female appointments, following a shareholder revolt in April as the board representation level fell from 30 percent to 22 percent. In the latest hires, 40 percent of board positions will be held by women. It rose 1 percent, or 14p, to 1363.5p.

Asos became the latest online fashion brand to be hit by downgrades. Fears of declining consumer spending amid the cost of living tightness weighed on retail. HSBC maintained its “hold” rating, but lowered Asos’s target price from 860p to 590p.

The news came after Boohoo warned this week that trading had slowed in July and August. Asos fell 4.4 percent or 26p to 569p while Boohoo fell 4.8 percent or 1.85p to 36.45p. Joules seemed to have given investors enough reason to believe his turnaround plan could support the company.

A day after the ‘yummy mummy’ fashion brand tried to calm the market jitters after reports it could become insolvent, it rose 26 percent, or 1.3p, to 6.3p.

South West Water owner Pennon expects trade to remain in line with expectations, even if higher utility bills were expected.

In an update ahead of its interim results, the group said energy costs for the year will be around £50 million higher than last year’s figure of around £56 million. Pennon rose 2.5 percent, or 19p, to 787p.

Paul McDonald has stepped down as boss of headgear and gas mask maker Avon Protection after five years at the helm. Bruce Thompson will become executive chairman from tomorrow until a new chief executive is appointed. Avon rose 4 percent, or 43p, to 1124p.

Doorstep lender Morses Club said a surge of customers seeking compensation for unpayable loans means the company remains loss-making. The stock fell 26.1 percent or 1.29 pence to 3.65 pence.