Must read: UK GDP, easyJet, Netflix

Global markets 

After a mixed session in Asia with the Nikkei hitting a record high, European markets are trading cautiously higher. The FTSE 100 is up around 0.2%, driven by gains at Entain (LSE:ENT) and Tesco (LSE:TSCO). London Stock Exchange Group (LSE:LSEG), Antofagasta (LSE:ANTO), Diageo (LSE:DGE) and Games Workshop Group (LSE:GAW) begin trading ex-dividend today in the UK. 

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The UK economy grew by 0.5% in February, much stronger than analysts' expectations for growth of 0.1%. January’s GDP was also revised higher to 0.1%. This suggests that the UK economy was in a better-than-expected position going into the Iran energy shock that will weigh on March’s GDP figures next month. 

US futures are pointing to a strong open after a record closing highs for the S&P 500 and the Nasdaq on Wednesday fuelled by hopes of a peace deal between the US and Iran.

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easyJet 

easyJet (LSE:EZJ) is expecting a first-half headline loss before tax of £540 million to £560 million. The airline said it faced £25 million in extra fuel costs in March and £30 million in legal provisions. It also said it is facing ‘near-term uncertainty around fuel costs and customer demand’. 

Shares in the short-haul airline are under pressure today, landing the stock down by around 25% so far this year. The Iran war has created a perfect storm for airlines this year. The carrier is facing a double whammy from weaker demand caused by March’s global travel disruption on the one hand, and pressure on the cost side from rising jet fuel prices on the other. Seasonally, the winter is always more challenging and usually loss-making for airlines when travel demand is quieter. However, easyJet is looking at a significant ~40% increase in its H1 loss year-on-year, highlighting how 2026 is proving to be much more challenging than usual. 

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Last month, easyJet’s CEO Kenton Jarvis suggested prices might have to go up by the end of the summer to deal with the extra fuel costs. However, with weakening travel bookings, the airline might not have the pricing power needed to pass on those extra cost pressures to consumers in terms of higher prices without denting demand.

Netflix preview

Netflix Inc (NASDAQ:NFLX) prepares to kick off US tech earnings season with results after the market close. Shares have struggled since the highs in June last year. However, sentiment appears to be turning more positive since February when the stock surged after investors cheered its decision to walk away from a bid for Warner Bros Discovery’s streaming and film studio assets. 

Last quarter, Netflix delivered a small beat on the top and bottom lines with earnings per share (EPS) hitting 56 cents on revenue of $12.05 billion and it reached a key milestone of 325 million global paid subscribers. However, its guidance for Q1 EPS hit 76 cents, falling short of expectations for 81 cents. 

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In Q1, aside from EPS and revenue, focus will be on its average revenue per use (ARPU), advertising revenues, and whether Netflix will upgrade its full-year guidance in light of recent subscription price increases. 

Netflix recently enjoyed some positive updates from the analyst community. Goldman Sachs upgraded the stock to buy from neutral in anticipation of a strong earnings report for Q1 and UBS described it a ‘top pick’ in the media space.