HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - Share prices are flat in London at the open Tuesday, with the situation in Greece starting to normalise but commodities prices still under pressure.

With US earnings season in full swing, together with a string of UK trading updates, company news is in focus.

In the FTSE 100, Royal Mail shares are off 0.4%, after it said revenue was flat in the first quarter of its current financial year, with a good performance in its parcels and logistics businesses but weaker revenue from its letters business.

In the FTSE 250, IG Group leads decliners, down 4.5%, after Chief Executive Tim Howkins said he will retire in October, with plans to travel to a balloon festival in Bristol and to Yosemite National Park in the US.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: flat at 6,787.61
FTSE 250: up 0.1% at 17,793.85
AIM ALL-SHARE: up 0.1% at 758.70
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Hang Seng: up 0.6% at 25,567.48
Nikkei 225: closed up 0.9% at 20,841.97
DJIA: closed up 0.1% at 18,100.41
S&P 500: closed up 0.1% at 2,128.28
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GBP: up at USD1.5573
EUR: up at USD1.0831

GOLD: up at USD1,106.90 per ounce
OIL (Brent): up at USD56.74 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times in BST)

09:00 Switzerland Trade Balance
09:30 UK Public Sector Net Borrowing
13:55 US Redbook index
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Greece cleared its first hurdle in the bailout crisis by repaying the money due to the International Monetary Fund and the European Central Bank with the European Commission's EUR7.16 billion bridge-loan, and banks in the crisis struck country opened partially despite stock exchange closure. In addition, the Greek government also paid money owed to the Greece's central bank. In total, the government repaid EUR6.8 billion to its creditors. Meanwhile, banks in Greece reopened partially on Monday after a three-week closure, helped by ECB lifting the emergency lending assistance by EUR900 million for a week. The Greeks can now withdraw up to EUR420 a week as opposed to the previous withdrawal limit of EUR60 per day. Yet, capital controls largely remain in place, including a block on foreign banks money transfers and a ban on new accounts opening.
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The US central bank finalized new rules to require the largest, most systemically important US-based banks to strengthen their capital reserves and reduce dependence on volatile, short-term credit. The Federal Reserve, which regulates banks in addition to its high-profile role in monetary policy and setting benchmark interest rates, suggested that the rules could create an incentive for banks to remain smaller, presenting less systemic risk in the event of a failure.
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Members of the Bank of Japan's monetary policy board said that the country's economic recovery continues to grow at a satisfactory pace, minutes from the board's June 18-19 meeting revealed. The recovery is expected to continue, the board said, although downside risks include the European debt situation and the state of commodity exporters. "Japan's economy has continued to recover moderately. Overseas economies - mainly advanced economies -- have been recovering, albeit with a lackluster performance still seen in part," the minutes said.
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EU interior ministers agreed to accommodate close to 55,000 asylum seekers within their bloc, but some member states refused to open their doors to refugees who have already reached European shores - thwarting a pledge to help 60,000 people. Austria refused to accept any redistributed asylum seekers from Greece or Italy, while Hungary - which has been a vocal opponent of the refugee scheme - refused to take anybody from within or outside the EU.
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US Secretary of State John Kerry welcomed the opening of embassies between the US and Cuba, calling it a "historic day for removing barriers" but noting that differences remain between the long-time foes. The resumption of relations between the neighbours after more than half a century does not eliminate US concerns about human rights and other issues, but "does reflect the reality that the Cold War ended long ago," he said after talks with Cuban Foreign Minister Bruno Rodriguez in Washington.
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BROKER RATING CHANGES
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NOMURA RAISES SABMILLER TO 'BUY' ('NEUTRAL') - TARGET 4000 (3000) PENCE
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TRADERS: JEFFERIES RAISES EVRAZ TO 'HOLD' ('UNDERPERFORM')
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TRADERS: LIBERUM INITIATES TOWN CENTRE SECURITIES WITH 'BUY' - TARGET 355 PENCE
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COMPANIES - FTSE 100
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Royal Mail said its group revenue was flat in the first quarter of its current financial year, with a good performance in its parcels and logistics businesses but weaker revenue from its letters business. The postal service operator said its group revenue for the three months to June 28 was flat. Royal Mail said revenue in its UKPIL division, which covers its UK parcels and letters delivery business, was down by 2%, as revenue in its UK parcels arm rose by 2% but revenue from its letters business fell by 4%. UK parcels volume rose by 3% in the quarter, while letters volume fell 5%.
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Banco Bradesco entered exclusive talks late on Monday to acquire the Brazilian arm of HSBC Holdings, Reuters reports, citing a person with direct knowledge of the deal. The source told Reuters that should HSBC accept the offer from Bradesco, the second-largest private sector bank in Brazil, a deal could be announced before the end of July. The bid values HSBC Bank Brasil Banco Multiplo at around BRL12 billion, or USD3.75 billion, the source added.
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COMPANIES - FTSE 250
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IG Group Holdings said it is seeking a new chief executive as Tim Howkins is set to retire after nearly nine years in the role and 16 at the group as a whole. The London-listed spread betting and contracts-for-difference company, which gives retail traders access to financial markets, said Howkins is to step down at its annual meeting of shareholders in October. Peter Hetherington, currently the group's chief operating officer, has put himself forward to replace Howkins and will take the top job on an interim basis until a permanent successor is confirmed. Separately, the group said it made a GBP169.5 million pretax profit in the year ended May 31, compared with GBP194.9 million in the prior year. The company maintained its dividend at 28.15 pence per share.
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PZ Cussons reported a drop in profit in its recently-ended financial year, although this was in line with its own and market expectations, as it continues to be hit by currency headwinds. The personal healthcare products provider, which makes bath products including Imperial Leather and Original Source, reported a 32% drop in pretax profit in the year ended May 31 to GBP84.0 million from GBP123.7 million the year before. Revenue slipped to GBP819.1 million from GBP861.4 million. PZ Cussons will pay a total dividend of 8.00 pence, up 3.1% on the 7.76p paid the prior year.
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AO World said that it is on track with its long-term strategic process as it continues to build brand awareness and plans to expand its services in Europe. The online domestic appliances retailer said that sales continue to "build satisfactorily" in Germany. In the UK, AO World said revenue grew 6.5% in the three months to June 30, with orders up 13.9%, while AO.com experienced revenue growth of 11.2%. It said it had a strong start to trading in July and is encouraged by the indications of growth in housing transactions and disposable income in the broader market.
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Gaming company GVC Holdings said it is considering its options regarding its bid for Bwin.Party Digital Entertainment after the target company agreed a deal last week to be acquired by 888 Holdings. GVC said there is no certainty that it will make a new offer for Bwin.Party but said it is considering its options. GVC had made a 110 pence per share bid for Bwin.Party earlier this month, in a bid backed by Canadian gaming company Amaya Gaming.
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Cable & Wireless Communications reiterated its guidance for its current year to end-March 2016, as it saw revenue rise 4% in its first quarter. The telecommunications provider said revenue in its mobile segment was flat. In C&W's Fixed Voice business, revenue fell 5%. Broadband revenue rose 14%, and video revenue rose 11%. Managed Services rose 14%, and Wholesale revenue grew 9%.
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Intellectual property company IP Group said its Oxford Nanopore Technologies Ltd portfolio company has raised GBP70 million in a new financing round. IP Group's undiluted stake of 19.9% in Oxford Nanopore is now valued at GBP192.9 million, representing an unrealised fair value gain for IP Group on its investment of GBP50.3 million. IP invested another GBP13.9 million in Oxford Nanopore in the latest funding round.
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Specialty chemicals company Croda International said its pretax profit rose in the first half of 2015 on the back of better revenue across its operations, prompting it to hike its interim payout. Croda said its pretax profit for the six months to June 30 was GBP135.6 million, up from GBP125.1 million a year earlier. Croda said it will pay an interim dividend of 31.0 pence per share, up from 29.5 pence per share a year earlier.
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Specialty chemicals company Victrex said its trading in the third quarter was solid, against tough comparables from the year before, as it also said it has struck a deal to buy a US-based polymer gears manufacturer for USD6 million in cash. Thecompany said its trading in the three months to the end of June was solid, with revenue broadly flat year-on-year at GBP64.5 million, against GBP64.2 million. Group sales volumes in the quarter hit 1,070 tonnes, up 17% year-on-year. For the full-year, Victrex said it still expects to meet its expectations for the full year.
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Construction and housebuilding company Galliford Try said it has signed a deal with Birmingham City University to build the GBP46 million Conservatoire building in central Birmingham.
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Ball Corp confirmed that the European Commission has initiated a Phase II review in connection with Ball's recommended offer to acquire drinks can maker Rexam. The transaction is also still being reviewed by other antitrust agencies, including the US FTC and Brazilian CADE. Ball expects that all necessary regulatory clearances will be obtained during the first half of 2016. The Commission has concerns that the proposed transaction may reduce competition in the beverage can and aluminium bottle manufacturing industry in the European Economic Area. In February, Ball offered to acquire Rexam in a cash and stock deal valued at GBP5.4 billion, including the assumption of net debt.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Renold said its underlying sales fell in the first quarter of its financial year as it was hit by volatility in its end markets, though it still expects adjusted operating profit to meet its forecasts thanks to margin improvements. The industrial chains and power transmission products company said it has continued to make progress on its adjusted operating profit and margin in the first quarter on the back of its cost-cutting plans, but weak conditions in its end markets meant its underlying sales in the quarter to the end of March were down by 4.1%.
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Cloud computing services company Nasstar said that while its first half trading in 2015 was in line with its expectations, it now expects to miss its forecasts for the full year due to a series of challenges set to hit the business in the second half. Nasstar said the first half of the year has been in line with its expectations, with cost cutting programmes completed on track and the company becoming one of a few partners in the UK to join the Microsoft Cloud Solution Provider programme.
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COMPANIES - INTERNATIONAL
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International Business Machines said its second quarter profit fell 17% from last year, as revenue declined 13.5%. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. At the same time, the company maintained its full year operating earnings outlook. IBM now expects a modest increase in free cash flow, improved from its prior expectation of flat.
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Swiss pharmaceutical giant Novartis reported that its second-quarter net income from continuing operations declined to USD1.86 billion from USD2.72 billion in the prior year. Total group net income declined to USD1.84 billion from USD2.59 billion last year.
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The USD3.7 billion corruption scandal around Brazil's energy giant Petrobras unfolded further with plans by justice officials to charge the head of a mammoth international construction company, Odebrecht, according to a news report Monday. Agencia Brasileira reported that charges are to be brought against the head of the firm, Marcelo Bahia Odebrecht, and seven other top managers of his firm.
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Toshiba President Hisao Tanaka was expected to step down Tuesday after a third-party panel found the company had inflated its profits by JPY151.8 billion over seven years, a media report said. Tanaka was likely to explain the findings at a news conference later in the day, and he and his predecessor Norio Sasaki, who serves as vice chairman, were expected to announce their intention to resign, Kyodo News agency reported, citing unnamed sources.
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German business software maker SAP reported that its profit after tax for the second quarter, on an IFRS basis, slid 16% to EUR469 million. On the same basis, operating profit edged up 1% to EUR701 million. On a non-IFRS basis, profit after tax grew 2% to EUR960 million, and operating profit rose 13% to EUR1.394 billion. SAP's total revenue rose 20% to EUR4.97 billion.
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India-based software exporter Infosys Technologies reported its profit attributable to owners of the company for the first-quarter declined to USD476 million from the prior year's USD482 million. Quarterly revenue grew to USD2.256 billion from USD2.133 billion last year. For the fiscal year ending March 31, 2016, revenues are expected to grow 10%-12% in constant currency. Revenue is expected to grow 7.2%-9.2% in dollar terms.
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Under pressure from an activist investor, mobile chipmaker Qualcomm may announce it is considering a breakup of the company, among other options, the Wall Street Journal reported. San Diego, California-based Qualcomm might announce it is considering that and other options when it reports fiscal third-quarter results on Wednesday, according to the WSJ report, citing people familiar with the matter. Activist investor Jana Partners, a key Qualcomm shareholder, has reportedly urged the company to consider a breakup and other options to boost its sagging stock price. Jana Partners is said to have purchased a stake of more than USD2 billion in Qualcomm.
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Tuesday's Scheduled AGMs/EGMs

National Grid
AO World
Quantum Pharma
Big Yellow
British Land Co
Assura
JPMorgan European Investment Trust
Scapa Group
VP
TR Property Investment Trust
Cable & Wireless
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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