Some more positive news for IDS; equities +5%, bonds unch

Regulator Ofcom estimates the universal service obligation or USO (deliver letters 6 days/week, 1st class & 2nd class delivery speeds) costed royal mail £325-£675m in 2021/22. The cost-savings in reduced delivery schedule come after reports Rishi Sunak would not allow Saturday deliveries to be scrapped; "strong view” that Saturday deliveries “provide flexibility and convenience” (Downing street). Ofcom has invited public views open till 3rd April 2024.

Its bonds are unch (including its £ 30's) (short-end July '24's showing mids +5 wider) - it was affirmed at BBB Neg by S&P in August '23 but has been on neg outlook since Sept. '22. It's € 26's & 28's at Z+125 & +179 trade wide to BBB names.

IDS reported 3Q24 results last week, FY24 outlooks remained unch at; "We are expecting a second-half operating profit, on an adjusted basis, to broadly offset the £169 million operating loss in the first half, so our guidance for the full year remains at about breakeven excluding voluntary redundancy costs." which should still mark a recovery from FY23 loss.