Market Report: Disaster damages Carnival's outlook

Investors ditched Carnival as its boss said its cruise brand Costa would take "two to three years" to fully recover after the fatal Costa Concordia accident off the coast of Italy last year.

Carnival reported its third quarter results yesterday and chairman Micky Arison said it could take three years for its Costa business to get back to normal after the Costa Concordia ran aground off the Tuscan island of Giglio in January 2012, with the loss of 32 lives.

The results also revealed a 30 per cent fall in third-quarter profit and Carnival warned that full-year sales could be down 3 per cent.

The Concordia disaster was followed by other issues with Costa ships including passengers becoming stranded on its Triumph vessel. But Mr Arison said Costa remained the number one cruise brand in Italy, France, South America and China, and should return to profit this year. But punters decided to abandon ship and it sank 134p to 2,258p.

Analysts at Jefferies said they saw "no outperformance catalyst" in the release from Carnival and rated it a hold, as it was still "too early to buy".

The shares were the worst performer on the benchmark index in a wider market that was largely treading water.

The FTSE 100 index advanced just 14.09 points to 6,571.46 as traders were looking for direction. Concerns about future US monetary stimulus reductions continued to weigh on investors minds. Alex Young, a senior sales trader at spread-better CMC Markets, said: "Most of the [Federal Open Markets Committee] are …seemingly intent on delivering daily conflicting messages to the market."

The defence and aerospace giant BAE Systems was boosted by news that Sweden will take up an option to buy more of its vehicles. The Swedish Defence Minister Karin Enstroem said its government would spend £100m on armoured all-terrain vehicles and BAE rose 6.9p to 450.9p.

Analysts at Jefferies were bullish about the prospects for jet-engines maker Rolls-Royce. They predicted its civil aerospace services business Total Care would improve, with the outlook by 2015-16 looking good. It rated it a buy and raised its target from 1,250p to 1,400p. The shares rose 17p to 1,132p.

Engineer Amec was out of favour after experts warned punters that the expected £100m-a-year dividend payout was not enough to justify the current price.

Amec is expected to return "surplus cash" to shareholders, which analysts at UBS calculate to work out at between £80m and £100m a year in the shape of a share buyback or special dividend. But this isn't enough to drive "outperformance of the stock", and UBS slashed its rating to neutral from buy. It also reduced its target price to 1,145p from 1,200p.

Punters heeded the warning, and Amec slipped 17p to 1,091p.

Diggers were weak as metal prices remained under pressure. The gold miner Randgold Resources lost 128p to 4,493p.

Pharmaceuticals group Shire weakened 31p to 2,489p as traders speculated about the prospects of buying the US group ViroPharma. Some said Shire has already made an offer, as had possible rival bidder Sanofi, with rumours that Sanofi's bid was higher.

Mid-tier events group Euromoney Institutional Investor added 98p to 1,149p following a trading update.

On Aim, President Energy said locations it is exploring in Paraguay had the potential for "giant" oil fields, giving it a 1.5p boost to 24.9p.

Image technology specialist OMG said its Vicon division worked with Audiomotion Studios on the newly released EA Sports game Fifa 2014. It used its mocap technology to capture the movements of players including as former Tottenham Hotspur and now Real Madrid star Gareth Bale. It scored a 1.5p rise to 31.75p.

Investors fell out of love with the dating website group Cupid when it reported a half-year pre-tax loss of £2.8m. The shares lost 3p to 64p.

Oracle Coalfields, which is developing Pakistan's first major coal mine, has reached a supply deal with the Chinese state-owned group Camce. Oracle powered up 0.675p to 2.225p.

Arts & Entertainment
A stranger calls: Martin Freeman in ‘Fargo’
tvReview: New 10-part series brims with characters and stories

News
peopleActress speaks out against historic sexual assault claims, saying things have 'gone quite far now'

Arts & Entertainment
Shaun Evans as Endeavour interviews a prisoner as he tries to get to the bottom of a police cover up
Review: Second series comes to close with startling tale of police corruption and child abuse
Sport
Raheem Sterling and Luis Suarez celebrate during Liverpool's game with Norwich
football Another hurdle is out of the way for Brendan Rodgers' side
VIDEO
Life & Style
Guests enjoy food and cocktail parings by Chefs Jimmy Bannos, Jimmy Bannos Jr, Daniel Rose and Mindy Segal with mixologists Josh King and Alex Gara at Bounty & Barrel: A Jack Daniel's Single Barrel Dinner Series at Heaven on Seven on April 9, 2014 in Chicago, Illinois.
news Sprinkle Palcohol 'on almost any dish' for 'an extra kick' firm says...
Arts & Entertainment
Charlotte Brontë, the English novelist, poet and the eldest of the three Bronte sisters who lived into adulthood, has been celebrated with a Google Doodle depicting her most famous novel, Jane Eyre.
arts + ents "Reader, they doodled her".

Arts & Entertainment
Schwarzenegger winning Mr. Universe 1969
arts + entsCan you guess the celebrity from these British Pathe News clips?
News
Portrait of Queen Elizabeth-II by David Bailey which has been released to mark her 88th birthday
peoplePortrait released to mark monarch's 88th birthday
Arts & Entertainment
The star of the sitcom ‘Miranda’ is hugely popular with mainstream audiences
TVMiranda Hart lined up for ‘Generation Game’ revival
Life & Style
The writer, Gerda Saunders, with her mother, who also suffered with dementia before her death
healthGerda Saunders on the most formidable effect of her dementia
Arts & Entertainment
Oxegen in Ireland has been axed as promoters decide it is 'no longer viable'
arts + ents Promoters have axed the event as it is 'no longer viable in current form'
News
The troubled star is set to give fans the biggest insight into her life away from the headlines
people Star made the announcement during the final episode of the programme, entitled Lindsay
News
YouTube clocks up more than a billion users a month
mediaEuropean rival Dailymotion certainly thinks so
Arts & Entertainment
The original design with Charles' face clearly visible, which is on display around the capital
arts + ents
Arts & Entertainment
‘Self-Portrait Worshipping Christ’ (c943-57) by St Dunstan
books How British artists perfected the art of the self-portrait
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Database Team Lead ( Leadership, Sybase, Computer Science)

Negotiable: Harrington Starr: Database Team Lead ( Leadership, Sybase, Compute...

C#.NET Delphi SQL Developer (C#,DELPHI,SQL)

£40000 - £50000 per annum + Bonus+Benefits+Package: Harrington Starr: C#.NET D...

VB.NET SQL Junior-Mid Level Developer (VB.NET,SQL,Excellent com

£25000 - £35000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET S...

Trade Support, Application Support, Operations Analyst, CRM MS

£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: Trade Suppor...

Day In a Page

Rubin ‘Hurricane’ Carter: The man who could have been champion of the world - and the Bob Dylan song that immortalised him

The man who could have been champion of the world

Rubin ‘Hurricane’ Carter and the Bob Dylan song that immortalised him
Didn’t she do well?

Didn’t she do well?

Miranda Hart lined up for ‘Generation Game’ revival
The Middle East we must confront in the future will be a Mafiastan ruled by money

The Middle East we must confront in the future will be a Mafiastan ruled by money

In Iraq, mafiosi already run almost the entire oil output of the south of the country
Before they were famous

Before they were famous

Can you guess the celebrity from these British Pathe News clips?
Martin Freeman’s casting in Fargo is genius

Martin Freeman’s casting in Fargo is a stroke of genius

Series is brimming with characters and stories all its own
How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players