Europe’s largest bank, HSBC, claims a 5% profits climb for the first half of 2017. HSBC, a bellwether of global banking sentiment, has also announced a fresh $2bn share buy-back program lifting its overall buy-back figure to $5.5bn, a figure bigger than most analyst expectations. HSBC’s profits came in at $10.2bn in total, above $9.7bn for the same period in 2016.
Overnight the euro was -0.02% against the dollar at $1.1747 while sterling was at $1.3130, down -0.03%. Brent crude was up 0.38% to $52.42 while WTI crude climbed 0.36% higher to $49.89, both prices now reflecting a two-month high.
This morning new UK net lending numbers are forecast to rise slightly; Bank of England consumer credit figures plus mortgage approvals also arrive, 8.30am. Watch also for eurozone consumer price index data out shortly.
- UK FTSE 100 7,368.37 -1.00%
- Dow 21,830.31 +0.15%
- S&P 500 2,472.10 -0.13%
- Nasdaq 6,374.68 -0.12%
- Nikkei 225 19,956.65 -0.02%
- DAX 12,162.70 -0.40%
- CAC 40 5,131.39 -1.07%
- Gold 1,274.40 -0.07%
- Oil WTI 49.85 +0.28%
A report from the FT claims Japan’s biggest bank, MUFG, is zeroing in on Amsterdam as a possible post-Brexit EU base. Currently MUFG has around 2,100 staff in London though it’s uncertain just how many of these roles would see a shift to the Netherlands.
However if MUFG does plump for Amsterdam it would mean a divergence from Frankfurt where Nomura and Daiwa are making plants to pitch tents (also Standard Chartered and Morgan Stanley though Barclays is going for Dublin).
Some concern for Snap this week as a fresh tranche of stock hits the market. Snap shares are already 19% below their $17 initial public offering price at $13.81 while 43% down from their record high. Any share flood will come from Snap owners who can now sell their shares following a lock-up period.
Expect plenty of short trading on the stock. The pressure on Snap will continue as quarterly numbers come up for air on 10 August. Though Snapchat is popular with millennials the competition from Instagram and Facebook is immense.
Not everyone is down on the stock. "I think it's a great buying opportunity," Drexel Hamilton's global head of technology hardware and software told CNBC. "If you look at a lot of high growth companies, in the first three years after an IPO, they trade at nine to 22 times enterprise value to revenue."
Breaking news: Daily Mirror owner Trinity Mirror claims a "resilient performance" with half-year revenues falling from £374m to £320m and earnings per share slumping from 19.1p to 17.9p. "Although the trading environment remains challenging," says Trinity, "at this stage, the Board expects full year adjusted results to be in line with expectations." Newspapers ad revenue though fell by 26%.