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.

Susan Sarandon described David Bowie as
peopleSusan Sarandon reveals more on her David Bowie romance
Arsenal supporters gather for a recent ‘fan party’ in New Jersey
sportDidier Drogba returns to Chelsea on one-year deal
Arts and Entertainment
The Secret Cinema performance of Back to the Future has been cancelled again
Life and Style
Balmain's autumn/winter 2014 campaign, shot by Mario Sorrenti and featuring Binx Walton, Cara Delevingne, Jourdan Dunn, Ysaunny Brito, Issa Lish and Kayla Scott
fashionHow Olivier Rousteing is revitalising the house of Balmain
Arts and Entertainment
Christian Grey cradles Ana in the Fifty Shades of Grey film
filmFifty Shades of Grey trailer provokes moral outrage in US
BBC broadcaster and presenter Evan Davis, who will be taking over from Jeremy Paxman on Newsnight
peopleForget Paxman - what will Evan Davis be like on Newsnight?
Life and Style
fashionCustomer complained about the visibly protruding ribs
The new dawn heralded by George Osborne has yet to rise
voicesJames Moore: As the Tories rub their hands together, the average voter will be asking why they're not getting a piece of the action
Dejan Lovren celebrates scoring for Southampton although the goal was later credited to Adam Lallana
newsComedy club forced to apologise as maggots eating a dead pigeon fall out of air-conditioning
Arts and Entertainment
Jo Brand says she's mellowed a lot
tvJo Brand says shows encourage people to laugh at the vulnerable
Life and Style
People may feel that they're procrastinating by watching TV in the evening
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Senior Risk Manager - Banking - London - £650

£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...

The benefits of being in Recruitment at SThree...

£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...

Test Analyst - UAT - Credit Risk

£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Evan Davis: The BBC’s wolf in sheep’s clothing to take over at Newsnight

The BBC’s wolf in sheep’s clothing

What will Evan Davis be like on Newsnight?
Finding the names for America’s shame: What happens to the immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert?

Finding the names for America’s shame

The immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert
Inside a church for Born Again Christians: Speaking to God in a Manchester multiplex

Inside a church for Born Again Christians

As Britain's Anglican church struggles to establish its modern identity, one branch of Christianity is booming
Rihanna, Kim Kardashian and me: How Olivier Rousteing is revitalising the house of Balmain

Olivier Rousteing is revitalising the house of Balmain

Parisian couturier Pierre Balmain made his name dressing the mid-century jet set. Today, Olivier Rousteing – heir to the house Pierre built – is celebrating their 21st-century equivalents. The result? Nothing short of Balmania
Cancer, cardiac arrest, HIV and homelessness - and he's only 39

Incredible survival story of David Tovey

Tovey went from cooking for the Queen to rifling through bins for his supper. His is a startling story of endurance against the odds – and of a social safety net failing at every turn
Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little