HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - London stock prices were boosted on Thursday after remarks by Federal Reserve Chair Jerome Powell were interpreted by the market as suggesting a slower pace of US monetary policy tightening.The FTSE 250 index was higher despite a barrage of bad news from constituent Intu Properties, as yet another suitor dropped plans for a takeover offer, and the shopping centre owner warned it will reduce its dividend amid a "challenging" asset disposal environment.The FTSE 100 was up 32.34 points, or 0.5%, at 7,036.86 early Thursday. The FTSE 250 was up 74.32 points, or 0.4%, at 18,714.05 and the AIM All-Share up 0.7% at 936.15.The Cboe UK 100 was up 0.4% at 11,937.53, and the Cboe UK 250 up 0.2% at 16,810.49. The Cboe UK Small Companies was down 0.1%, however, at 11,411.96.In mainland Europe, the CAC 40 stock index in Paris and the DAX 30 in Frankfurt were up 0.9% and 0.6%, respectively. Sentiment was bolstered on Thursday after Fed Chair Powell's speech, in which he hinted that the pace of US interest rate rises could slow. "Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy - that is, neither speeding up nor slowing down growth," Powell said Wednesday.The Fed last raised its benchmark US interest rate in September, setting it at a range of 2.00% to 2.25% based on the strong US labour market conditions and low inflation. The US central bank is expected next month to hike again, for the fourth time in 2018."Investors interpreted the comments as a signal that rate rises will slow across the coming year and that the Fed could decide not to hike rates much further. This is like Christmas come early for the markets! Investors had been growing increasingly nervous of the Fed hiking rates too quickly and stifling economic growth," said Jasper Lawler, head of research at London Capital Group.In Asia on Thursday, the Japanese Nikkei 225 index ended up 0.4%. In China, the Shanghai Composite ended down 1.3%, while the Hang Seng index in Hong Kong closed down 0.9%.The economic events calendar on Thursday has eurozone consumer confidence data at 1000 GMT and Germany unemployment figures at 0855 GMT and inflation readings at 1300 GMT. US core personal consumption expenditure, which is the US Federal Reserve's preferred inflation gauge, is due at 1330 GMT. The minutes of the US Federal Open Market Committee meeting earlier in November will be released at 1900 GMT.Unsurprisingly, Intu Properties shares sank 37% in opening trade after a consortium decided against making a takeover offer for the FTSE 250 shopping centre owner, the second time it has been jilted this year. At the same time, Intu said it will reduce its dividend, starting with its final payout for 2018. "The consortium is highly appreciative of the cooperation shown by intu's board of directors and management team over the past six weeks. However, given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the code timetable," the consortium comprising Peel Group, Olayan Group and Brookfield Property Group said in a statement. The consortium had proposed a GBP2.85 billion takeover bid, with the deadline to make this offer formal on Friday. Earlier this year, in April, UK peer Hammerson dropped its own GBP3.40 billion takeover bid for Intu, believing the deal was not in the interest of shareholders.Intu, in its own statement, said it remains "confident" in its commercial prospects but warned on its dividend.Intu said: "Given the heightened macroeconomic uncertainty and the reduced pool of potential buyers at present for UK shopping centres, asset disposals are expected to be challenging to deliver in the next few months. intu therefore intends to substantially reduce the payment of dividends in the short term, starting with the 2018 final dividend."It was a more positive start to the session for Britvic, up 5.1% after the soft drinks maker posted a rise in annual revenue and profit as it manages to navigate the UK soft drinks sugar levy.Revenue for the year to September 30 rose 5.1% to GBP1.50 billion, as pretax profit grew 5.0% to GBP145.8 million from GBP138.8 million last year. The firm bumped up its dividend 6.4% to 28.2p from 26.5p."We have delivered a strong performance in a challenging environment, with good revenue, margin and earnings growth. I am delighted that we have grown our stills brands, demonstrating that our investment in innovation and marketing is beginning to pay off," said Chief Executive Simon Litherland.The FTSE 250 constituent added that it is "successfully" navigating the soft drinks levy, underpinned by the strength of its low- and no-sugar portfolio.Greene King, up 4.5%, said interim like-for-like sales were up 2.7%, ahead of the market which was up 1.1%.Revenue for the half to October 14 rose 1.9% to GBP1.05 billion, while pretax profit was up 3.2% to GBP127.7 million. In current trading, Greene King said Pub Company sales were up 2.9% at week 30 of its financial year, while Christmas bookings are "well ahead" of last year. FTSE 100 constituent Ashtead rose 2.0% after the rental equipment firm said Geoff Drabble has decided to step down as chief executive at the end of the current financial year on May 1, and retire from the group on November 30, 2019.He will be succeeded by Brendan Horgan, currently chief operating officer and chief executive of Sunbelt Rentals, Ahstead's North American business. The unit accounted for 87% of Ashtead's total revenue generated in its last financial year.In other major board change, Unilever said CEO Paul Polman has decided to retire from the consumer goods giant. The decision follows the company's planned shift to the Netherlands being blocked by shareholders.Alan Jope, currently Beauty & Personal Care president, has been appointed to the position effective from the start of 2019, with Polman supporting the transition process during the first half of the year. Shares in the Lipton ice tea maker were up just 0.3%.Polman - who has been Unilever CEO for over 10 years - will retire from his role and the board at the end of 2018. A successor to the role of Beauty & Personal Care president will be announced shortly, the company added.Banking stocks were broadly higher in early trade, with Royal Bank of Scotland up 1.2%, Barclays up 0.7%, Lloyds Banking up 0.8%, and Standard Chartered up 0.3%. HSBC Holdings was down 0.4%. After the market close on Wednesday, the Bank of England's annual stress test showed UK banks are strong enough to withstand a disorderly Brexit and the country's financial system is resilient to the wide range of risks it could face.In the 2018 stress-test scenario, UK GDP falls by 4.7%, the UK unemployment rate rises to 9.5%, UK residential property prices fall by 33% and UK commercial real estate prices fall by 40%. The scenario also includes a sudden loss of overseas investor appetite for UK assets, a 27% fall in the sterling exchange rate index and Bank Rate rising to 4%.The BoE said that the seven participating banks, which include Royal Bank of Scotland Group, Barclays, HSBC Holdings, Lloyds Banking Group, Standard Chartered, Nationwide Building Society and Santander UK did not reveal capital inadequacies and were consequently not required to submit a revised capital plan.