HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - Stocks in London are called for a marginally higher start on Friday, as Smurfit Kappa joined HSBC in reported a strong first three months of 2019.IG futures indicate the FTSE 100 index is to open 4.4 points higher at 7,355.71. The blue chip index closed down 33.95 points, or 0.5%, at 7,351.31 on Thursday.Irish packaging firm Smurfit Kappa posted strong earnings growth and solid revenue for the three months to March.Smurfit's revenue reached EUR2.32 billion for the quarter, up 7% year-on-year, with earnings before interest, tax, depreciation, and amortisation rising 25% to EUR424 million and an Ebitda margin of 18.3%. The firm said it was a "very strong" quarter, with figures reflecting higher corrugated pricing, increased demand, and "a relentless" focus on costs. Intercontinental Hotels Group expressed confidence for the rest of 2019 despite uncertainty in some of its markets, after a solid first quarter.Revenue per available room in the first quarter of 2109 rose 0.3%, against a strong comparator year-on-year, with US revPar climbing 0.6% on the year. In Europe, the Middle East, & Africa revPar fell 0.7% despite growth in Europe, where UK revPar increased 2%. Greater China's revPar was flat, after a very strong performance a year prior, IHG said. IHG's net system size rose 5.4% year-on-year to 843,000 rooms, and it has another 279,000 rooms in the pipeline. Early Friday, Europe's largest bank HSBC said it made a "good start" to 2019, seeing a significant rise in first quarter profit driven by its Retail Banking & Wealth Management and Commercial Banking businesses.For the three months ended March, pretax profit rose 30% to USD6.21 billion from USD4.76 billion the year prior. Excluding the impact of currency translation, pretax profit rose 9.5% on the year before.The Asia-focused lender's revenue increased 14% in the first quarter to USD14.43 billion from USD12.70 billion the year before. Revenue performance was driven by strong growth in all of HSBC's three main global businesses."We have made a good start to 2019. Reported profit after tax was up significantly on the first quarter in 2018, thanks largely to strong revenue growth in our Retail Banking & Wealth Management and Commercial Banking businesses, and favourable movements in significant items," said Chief Executive John Flint.HSBC's net interest margin at March 31 was 1.59%, down from 1.67% at the end of the first quarter in 2018. For the first quarter, return on tangible equity stood at 10.6%, up from 8.4% the year prior.For the three months ended March, the jaws ratio was at 6.0%. The CET1 ratio for HSBC ended the period at 14.3%, an increase from 14.0% at December 31.AstraZeneca said the US Food & Drug Administration has approved Qternmet XR, a once-daily oral medicine, as a treatment to help glycaemic control in adults with type-2 diabetes. In the midcap FTSE 250, medical products firm ConvaTec reported a 6% drop in first quarter profit to USD430.6 million, with organic growth a negative 2.0%. Excluding a rebate provision, organic revenue fell 0.1%. These results are in line with expectations, ConvaTec said, and reflect the difficulties the business is currently facing. Advanced Wound Care is being held back from a legacy portfolio and underperformance in the US, which have "more than offset" good demand for some product.Likewise, problems in the US have held by ConvaTec's Ostomy Care business. However, Continence & Critical Care has done well, as has Infusion Devices. Looking ahead, ConvaTec affirmed all 2019 guidance, seeing organic revenue growth of 1.0% to 2.5% year-on-year. intu Properties had a "good" first quarter lettings performance but warned the rest of the year is anticipated to be difficult due to a higher level of company voluntary arrangements than expected among retailers in its shopping malls.In the first quarter, the company agreed 53 long-term leases worth GBP6 million in annual rent, a performance Chief Executive Matthew Roberts described as "stable" even though it was down from 60 leases for GBP10 million in annual rent agreed in the same period a year ago.Occupancy at March 31 was 95.6%, slipping from 96.1% a year ago.Looking ahead, intu expects like-for-like net rental income for 2019 will be down 4% to 6% on the year before. Income is expected to fall more sharply in the first half before the pace moderates in the second.Provident Financial, currently engaged in a takeover tussle with Non-Standard Finance, said performance in the first quarter met expectations, with all four distribution channels delivering "strong" new business volumes. Vanquis Bank grew new customers by 13%, while Moneybarn achieved record new business volumes. Recovery in Home Credit continues, while Satsuma has grown new business and lending volumes by 16%. Provident does expect to book GBP17 million to GBP22 million of exceptional costs related to the NSF bid, but did not provide any further commentary. Theme park operator Merlin Entertainments said trading in a traditionally quieter period has met expectations, with progress solid across the board. Elsewhere, Bank of Ireland is making progress on its strategic targets, with its net interest margin, net interest income, and other income all meeting expectations during the first quarter of 2019. Bank of Ireland's CET1 ratio was 13.3% at the end of March from 13.4% at the end of December, while customer loan volumes climbed EUR2.1 billion over the three months to EUR79.1 billion. Stockbroker Numis said a "challenging" market has hurt first-half performance. Revenue has slipped 25% to GBP55.7 million for the six months to March, with pretax profit slumping 64% to GBP7.1 million. Revenue in the Equities segment slipped 28% due to weak sentiment among investors in the UK, while Investment Banking revenue fell 24%, though did rise 3% on the previous half.Numis is nevertheless encouraged and said it believes it can improve in the near-term. It held its interim dividend flat at 5.5p. In the US on Thursday Wall Street ended in the red, with the Dow Jones Industrial Average down 0.5%, the S&P 500 0.2% lower, and the Nasdaq Composite also down 0.2%.The Tokyo and Shanghai markets both remain closed for the Constitution Memorial and Labour Day holidays respectively, while the Hang Seng index in Hong Kong is up 0.3%."US stocks fell for a second straight session and Asian markets followed Wall Street lower overnight. Markets continue to digest the Fed's message of "Sorry, no rate cuts anytime soon". The Fed is still sitting on their hands due to lacklustre inflation," said London Capital Group's Jasper Lawler."However, Fed Chair Jerome Powell saying low inflation factors are most likely transitory put to bed ideas of a rate cut. The market starting to accept the period of lower interest rates for longer will slowly be coming to an end."UK voters have vented their anger at the two main parties over the continuing Brexit deadlock as both the Tories and Labour suffered losses in the English council elections.The Conservatives had been braced for a tough night amid frustration at Theresa May's failure to take Britain out of the EU on March 29 as planned.However Labour also struggled, losing seats at a point in the electoral cycle when they could expect to be making significant gains at the expense of the government.In contrast, the Liberal Democrats were enjoying a good night, with some predictions that they could pick up as many as 500 seats.With results in from 88 of the 248 councils where elections are being held, the Conservatives had lost 224 seats and Labour 37 while the Lib Dems had gained 155 and the Greens 26.In other UK news, good weather, school holidays, and Easter have failed to salvage the UK's suffering high streets in April, figures showed.UK high street retail sales were down 0.4% year-on-year off an already poor 3.8% fall for the same month last year, according to BDO's high street sales tracker.It also marked the third month of in-store sales decline so far this year and fifteen months of little to no growth for the UK's beleaguered high street.The pound was quoted at USD1.3032 early on, broadly flat from USD1.3034 at the close on Thursday.Under the microscope later Friday will be the US nonfarm payrolls report at 1330 BST, alongside the unemployment rate and average hourly earnings. Also in the US, at 1445 BST, is the Markit US services PMI."Last month's goldilocks report recorded headline figures ahead of expectations and wages just shy of forecasts provoking a subdued market reaction," said Lawler."Today's nonfarm payrolls are expected to show 181,000 jobs were created in April, in line with the average over the last three months (180,000). Wages are expected to increase 0.3% whilst the unemployment rate is forecast to remain steady at 3.8%. All in all, a report with these figures would be considered a steady if not rather uninspiring report."In Europe, there is the UK's service PMI at 0930 BST and eurozone inflation at 1000 BST.Already out Friday, a PMI reading showed growth in activity in the Irish services sector slowed to a three-month low in April. The AIB services PMI for April printed at 54.7 in April, which was down slightly on its March reading of 55.3"It remained within the 54 to 56 range that has characterised the index year to date. The April level continues to indicate a strong pace of expansion in business activity in the services sector," said AIB Chief Economist Oliver Mangan.The sector has reported growth every month since August 2012. Activity was seen highest among Business Services firms.