Breakfast Briefing

Snap, Crackle and Popped?

May 11, 2017

Boeing - shares in the aircraft giant took a nose dive towards the end of yesterday’s trade as news broke that it was suspending test flights of its new 737 passenger jet. However, this could prove to be an over-reaction as the company is committed to making the first deliveries to customers this month. Its failure to do this that would be most costly for the business with big penalties likely to have to be paid.

BT - we noted earlier in the year how lax governance had lead to an accounting issue in Italy and BT’s chief executive is paying the price. News today outlined the fact that his pay package has been cut by around £4million. Given the increasingly vocal shareholder base we’re seeing, this sort of pre-emptive move is perhaps to be applauded and at least offers some valuable certainty.

Snap - the company behind the Snapchat app has reported its first quarterly earnings as a public company and as one news outlet puts it, not only did they record a $2.2 billion loss, but they also missed analyst expectations in pretty much every regard. Facebook’s attempts to copy the company’s strategy seem to be having an impact too - maintaining market share could prove costly!

Just Eat - the online takeaway food orderings service is under scrutiny from regulators after it agreed to purchase rival Hungryhouse. The Competition and Markets Authority has given the company a week to address competition concerns, amidst fears that the dominant market position will result in worse terms for restaurants who already pay a healthy commission on sales to these companies.

UK - The Bank of England publishes its quarterly inflation report today alongside the latest interest rate announcement. Insight as to just how quickly prices are expected to rise in the months ahead will offer some big clues as to just how long the Bank can maintain these low interest rates for.