Thomas Cook, Royal Mail and Britvic

“Blue-chips slumped in early trading as unease in the US after minutes from the Federal Reserve’s April committee meeting revealed most members were ready to make interest rates rise spread across the pond and were compounded by news that an EgyptAir flight from Paris to Cairo had disappeared,” says AJ Bell Investment Director Russ Mould.

“This latest incident follows the hijacking of an EgyptAir flight in March and piled further pressure on travel group Thomas Cook which has been hit by a slump in bookings to Turkey, its second largest market last year, following a spate of terror attacks in recent months. The group has also seen a sharp decline in Belgium following the attack on Brussels airport in March.

“Investors believe Thomas Cook will be feeling some chill winds this summer and its shares plunged by more than 15% in early trading.

“Royal Mail was another early faller after a 33% in annual profits and a warning that market conditions remained challenging. Letter volumes fell by 3% which was better than forecast but investors were disappointed that a 3% increase in UK parcel volumes only resulted in a 1% rise in revenues, reinforcing the fiercely competitive nature of that part of its business.

“Soft drinks group Britvic remains on track to meet its earnings guidance despite continued price deflation. The group has gained market share after outperforming the soft drinks category in each of its core markets.”

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