Key events
European stocks open higher, as traders poised for reaction on Biden drop out
All eyes are on market reaction to President Biden’s decision to pull out of the US election race. And we have positive prints from all major indexes at the start of the European trading day.
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FTSE 100 is up 0.43%
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Germany’s DAX is up 0.5%
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France’s CAC 40 is up 0.5%
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Spain’s IBEX is up 0.4%
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Euro Stoxx 600 is up 0.3%
Introduction: CrowdStrike still working to restore services after IT meltdown
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The world is still recovering from the global IT outage caused by a faulty security update by cybersecurity firm CrowdStrike last week, which hit hospitals, businesses, banks and airline services around the world.
In LinkedIn post overnight, CrowdStrike said it was continuing to “focus on restoring all systems as soon as possible,” and that it had deployed a “new technique” to try get everyone back online.:
CrowdStrike continues to focus on restoring all systems as soon as possible. Of the approximately 8.5 million Windows devices that were impacted, a significant number are back online and operational.
Together with customers, we tested a new technique to accelerate impacted system remediation. We’re in the process of operationalizing an opt-in to this technique. We’re making progress by the minute.
While the company has again apologised for the disruption, full restoration could take weeks. And that may result in further pain for CrowdStrike’s US-listed shares, which have so far plunged 11%.
Meanwhile, Ryanair has suffered a 46% drop in its first quarter profits, covering the three months to June, after the airline was hit by cost-conscious travellers.
Average passenger fares fell 15% in the quarter, compared to a year earlier, with CEO Michael O’Leary explaining that they had to take part in “more price stimulation than we had previously expected – meaning the the airline had to cut prices to bolster demand.”
He said the airline had recently tried to close off some cheap seats but they were met with resistance, and opened up lower-cost seats again, as a result.
O’Leary warned that there was likely to be more pain the second quarter:
While Q2 demand is strong, pricing remains softer than we expected, and we now expect Q2 fares to be materially lower than last summer.
The agenda