LONDON (Alliance News) - Stocks in London are set to open on firmer ground on Monday, following last week's sell-off, while traders eye Chancellor Philip Hammond's UK government budget.Meanwhile, shares in Asia-focused lender
HSBC were climbing in Hong Kong after the bank - which also is the second largest London-listed company by market capitalisation - reported a rise in third quarter profit.HSBC's rise in Asia overnight indicates a "jump higher" at the London open, commented Jasper Lawler, head of research at London Capital Group."Better-than-expected results from HSBC will keep banks under the spotlight as trading begins in London. With costs finally under control at the bank, growth is back on the agenda," said Lawler.IG says futures indicate the FTSE 100 index of large-caps to open 15.84 points higher at 6,955.40 on Monday. The FTSE 100 index closed down 0.9%, or 64.54 points, at 6,939.56 on Friday, having shed 1.6% over the week and hit its lowest level since Decimeter 2016 of 6,851.59."We're likely in for another turbulent week in financial markets as investors continue to try and navigate incoming news and data and determine just how bad the sell-off is going to be...Stocks in Europe are expected to open around half a percentage point higher at the start of the week providing some early relief, although as we've seen in the past in such environments, this can very quickly change," said Oanda senior market analyst Craig Erlam.In Asia on Monday, the Japanese Nikkei 225 index closed down 0.2%. In China, the Shanghai Composite ended down 2.2%, while the Hang Seng index in Hong Kong is 0.2% higher.In the US on Friday, Wall Street ended sharply in the red, with the Dow Jones Industrial Average ending down 1.2%, the S&P 500 down 1.7% and the tech-heavy Nasdaq Composite closing 2.1% lower.Focus in the UK will lie on Chancellor Phillip Hammond's Budget, due to be delivered to Parliament at 1530 GMT.He is expected to respond to Prime Minister Theresa May's declaration in her Conservative Party conference speech that the era of austerity was finally ending with a cautious loosening of the public spending purse strings. However, he coupled it with a warning at the weekend that the measures he is setting out depend on a successful outcome to the Brexit negotiations with Brussels.In the event of a no-deal break with the EU, he said he would be forced to tear up his plans and institute an emergency budget, while setting the economy on a "new direction".Kallum Pickering, senior economist at Berenberg, said: "We expect Hammond to announce a modest package of policy changes on Monday that would lift medium-term demand a little. Of course, he will also say that any long-term fiscal boost is predicated on the UK avoiding damaging no-deal hard-Brexit."Among revenue-raising policies, Hammond is expected to tweak pensions tax relief and raise remote gaming duty for overseas operators. Elsewhere in Monday's economic events, Italy's producer prices are at 0900 GMT, UK mortgage approvals figures at 0930 GMT, the European Commission's economic growth forecasts at 1000 GMT, and US core personal consumption expenditures at 1230 GMT.In early UK company news,
HSBC Holdings said it was making progress on its new growth strategy as third quarter profit and revenue both grew.In Hong Kong, shares in the dual-listed bank were trading 5.0% higher.For the three months ended September, pretax profit rose 28% to USD5.92 billion from USD4.62 billion a year prior. This was after revenue advanced 1.6% to USD13.80 billion from USD13.58 billion a year before, driven by "strong" growth in all of the Asia-focused bank's three main global businesses.HSBC proposed a 10 US cent per share third quarter dividend. This was flat on the year prior.The common equity tier one ratio for HSBC ended the period at 14.3%, compared to 14.5% nine month earlier. For the third quarter, return on tangible equity stood at 10.9%, up from 8.2% a year prior. For the nine months ended September, the jaws ratio was at negative 1.6%. The jaws ratio - a key financial performance indicator - is the difference between the percentage growth in income and the percentage growth in expenses.
Rio Tinto said an agreement signed two years ago for Chinalco to acquire the Australian miner's entire interest in the Simandou iron ore project in Guinea has now lapsed. Rio Tinto and Chinalco, which own 45.05% and 39.95% of Simandou respectively, will continue to work with the Government of Guinea to explore other options. The Government of Guinea owns a 15% stake in the project.Takeda Pharmaceutical Co said, following talks with the European Commission, it has proposed the sale of
Shire's pipeline compound SHP647 in order to prevent future overlap in inflammatory bowel disease.Takeda is in the process of buying UK-listed Shire, emphasising on Monday that its talks with the EC are not expected to cause a delay to its timetable for the acquisition.Shire's SHP647 - which is currently in phase three clinical trials - could create "future potential overlap" in inflammatory bowel disease given Takeda's marketed product, Entyvio."The company remains committed to Entyvio, which has been granted marketing authorization in more than 60 countries and is the cornerstone of Takeda's diverse specialty gastrointestinal portfolio. Takeda confirms that there are no discussions with the EC regarding any other marketed products or assets in the pipeline," said Takeda.Car dealership chain
Pendragon said it has hired Mark Willis, currently chief financial officer at
Ten Entertainment, as its new finance director following the resignation of Tim Holden. Holden will be standing down on March 31, 2019, after 10 years in the role. Willis's effective date of appointment is set to be confirmed. He will his six month notice period to Ten Entertainment, where he will help with a smooth handover ahead of his April 18 departure date, the ten-pin bowling alley operator said.Ten Entertainment Chairman Nick Basing said: "Whist we are disappointed that Mark has decided to leave the company, we respect his decision to join a much larger company."
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