HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - Shares are higher at the open in London Tuesday, following gains on Wall Street Monday, as investors return from a long weekend with two days to go before the too-close-to-call UK General Election.

Glencore shares are off 1.3%, after the resources company said production grew year-on-year across all of its commodities in the first quarter of 2015, but some segments saw production fall from the previous quarter.

Aberdeen Asset Management shares are down 0.9% despite announcing a GBP100 million share buy-back programme. Aberdeen said assets under management grew over the course of the second half of its financial year, as net outflows were more than offset by investment performance.

Still ahead Monday is a first-quarter update from HSBC at 0915 BST.

Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 0.6% at 7,027.95
FTSE 250: up 0.4% at 17,545.82
AIM ALL-SHARE: up 0.2% at 754.32
----------
Hang Seng: down 1.6% at 27,671.50
Nikkei 225: closed for Children's Day holiday
DJIA: closed up 0.3% at 18,070.40
S&P 500: closed up 0.2% at 2,114.49
----------
GBP: flat at USD1.5123
EUR: down at USD1.1096

GOLD: flat at USD1,188.91 per ounce
OIL (Brent): down at USD66.14 a barrel

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

10:00 EU European Commission Economic Growth Forecasts
10:00 EU Producer Price Index
13:30 US Trade Balance
13:30 Canada International Merchandise Trade
13:55 US Redbook index
14:45 US Markit PMI Composite
15:00 US IBD/TIPP Economic Optimism
15:00 US ISM Non-Manufacturing PMI
----------
The Conservatives and Labour appeared in a deadlock two days ahead of the UK General Election, with two separate polls putting the parties in a dead heat, while another indicated tactical voting by Tories is set to result in Liberal Democrat leader Nick Clegg retaining his seat. The Tories and Labour are tied in the daily YouGov/The Sun poll on Tuesday, with both parties at 33%. The ComRes/Sunday Mirror poll has exactly the same result as the YouGov survey, with the two main parties tied at 33%.
----------
The Reserve Bank of Australia lowered its benchmark interest rate by a quarter point as widely expected by economists. The policy board of the RBA led by Governor Glenn Stevens decided to cut the cash rate by 25 basis point to 2.00%, effective May 6. The board said the inflation outlook provided the space for monetary policy further. This was the second reduction this year. The bank last reduced the rate by 25 basis points in February.
----------
US Federal Reserve Bank of Chicago President Charles Evans is reluctant to raise interest rates after data confirmed the economy hit a rough patch for the second winter in a row. "Economic activity appears to be on a solid, sustainable growth path, which, on its own, would support a rate hike soon," Evans said in remarks prepared for a speech Monday in Columbus, Indiana. "However, the weak first-quarter data do give me pause, and I would like to see confirmation that they are indeed a transitory aberration," he added. "I likely will not feel confident enough to begin to raise rates until early next year."
----------
Reflecting a notable rebound in orders for transportation equipment, the US Commerce Department released a report Monday showing a sharp increase in new orders for US manufactured goods in the month of March. The Commerce Department said factory orders surged up by 2.1% in March following a revised 0.1% decrease in February. Economists had expected orders to increase by about 2.0% compared to the 0.2% uptick that had been reported for the previous month.
----------
The manufacturing sector in China slipped further into contraction territory in April, the revised survey from HSBC Bank showed on Monday, with a PMI score of 48.9. That missed forecasts for 49.4, and it's down from last month's preliminary reading that suggested a score of 49.2. It's also down from the March score of 49.6, and it moves further beneath the boom-or-bust score of 50 that separates expansion from contraction.
----------
EU Trade Commissioner Cecilia Malmstrom said she has some new ideas to help remove a major sticking point in trade negotiations between the US and the European Union. Speaking in Washington ahead of a meeting with her US counterpart, Michael Froman, Malmstrom said she would discuss the ideas with the EU Parliament this week, without giving details. The proposals would be a way around the so-called ISDS (investor-state dispute settlements) dispute, which she called "the most toxic acronym in Europe now." At issue is a mechanism already built into most of the world's free-trade agreements that would allow foreign investors to sue governments for damages if they pass new laws that undermine the value of an asset.
----------
The Italian parliament granted its final approval Monday to a new election law that is a controversial plank of the wide-ranging political reforms spearheaded by Prime Minister Matteo Renzi. The so-called Italicum aims to end Italy's chronic political instability. It grants a 55% parliamentary majority to the party that obtains at least 40% of the votes or, failing that, wins the most votes in a second-round ballot. The lower house of parliament, the Chamber of Deputies, approved it in a 334-61 vote, with no abstentions.
----------
Israeli Foreign Minister Avigdor Lieberman announced he will not join Prime Minister Benjamin Netanyahu's government, dealing a blow to the incumbent's emerging coalition in the 11th hour of negotiations. "We are going to serve the people from the opposition," said Lieberman, who leads the six-seat hardline right-wing Israel Beiteinu party. Defying predictions, the right-wing, nationalist Likud won 30 seats in the March 17 election, paving the way for Netanyahu's fourth term as premier.
----------
Italian authorities rescued a record 6,551 migrants at the weekend in 34 separate interventions in the central Mediterranean, including a woman who gave birth to a girl soon after being taken aboard. The mother and baby "are both in good health," the Italian navy said in a Monday statement, adding that the infant was delivered overnight on the Bettica patrol boat.
----------
BROKER RATING CHANGES
---------
JEFFERIES RAISES LLOYDS TO 'BUY' ('HOLD') - PRICE TARGET 102 (88) PENCE
----------
BARCLAYS REINITIATES BT GROUP WITH 'OVERWEIGHT' - PRICE TARGET 600 PENCE
----------
BARCLAYS CUTS RSA INSURANCE TO EQUAL WEIGHT (OVERWEIGHT) - TARGET 428 (448) PENCE
----------
HSBC RAISES LADBROKES TO 'HOLD' ('REDUCE') - TARGET 100 PENCE
----------
COMPANIES - FTSE 100
----------
Glencore said production grew year-on-year across all of its commodities in the first quarter of 2015, but some segments saw production fall from the previous quarter. The natural resources company said own-sourced zinc production was up 16% year-on-year to 356,200 tonnes, driven by the expansions at Lady Loretta and McArthur River. However, some temporary downtime at McArthur River and lower grades at the Kazzinc, Matagami and Rosh Pinah mines resulted in production falling by 8% quarter-on-quarter. Own-sourced copper production was the only segment to experience a year-on-year fall in the first quarter, dropping 9% to 350,700 tonnes.
----------
Aberdeen Asset Management said assets under management grew over the course of the second half of its financial year, as net outflows were more than offset by market movements and performance, while the group revealed plans to return surplus capital to shareholders. Aberdeen said assets under management grew to GBP330.6 billion from GBP324.4 billion between September 30, 2014 and March 31, 2015. Net outflows amounted to GBP11.30 billion over the six months, with GBP6.50 billion of that amount coming in the second quarter. Market movement and performance offset the net outflows, adding GBP13.5 billion to assets under management. The group said it intends to launch a share buyback of up to GBP100 million to return surplus capital to shareholders. It increased its interim dividend to 7.5 pence per share from 6.75 pence per share.
----------
Drinks company Diageo is considering selling parts of its wines division amid growing investor concern about the performance of the division, Sky News reported on Sunday. Sky said sources close to the company understand Diageo, which makes the Guinness stout and Smirnoff vodka brands, is examining plans to sell some of its wine brands, which include Blossom Hill and Sterling Vineyards, following approaches made by unidentified suitors.
----------
Barclays is preparing to sell a GBP2 billion package of second-charge mortgages and loans made via its Firstplus brand, more than a decade after it first floated plans to dispose of the subsidiary, the Financial Times reported. Barclays has been in talks with a number of new banks, which the newspaper did not name, in recent weeks about selling the portfolio, according to sources close to the situation. The GBP2 billion business, acquired as part of the takeover of Woolwich in 2000, was moved to Barclays' non-core arm in May and has not issued any new loans for six years.
----------
COMPANIES - FTSE 250
----------
Pub operator Greene King said its like-for-like sales grew in the first 51 weeks of its financial year, boosted by a good Easter and Valentine's Day, while revenue from its tenanted pub business also grew. Greene King said like-for-like sales in the 51 weeks to April 26 rose 0.4%, adding that the like-for-like sales would have been 0.8% higher excluding the impact of drink-driving regulations in Scotland. The group added like-for-like sales over the Easter period rose by 2.4% and said it had record sales over Valentine's Day. Greene King added that a decision is expected from the UK Competition and Markets Authority on its takeover of Spirit Pub Co PLC on May 11.
----------
Online takeaway operator Just Eat said its orders surged in the first quarter, with total orders boosted by its French and Mexican businesses, though like-for-like orders also boomed. The FTSE 250-listed company said its total orders in the quarter to the end of March rose 51% year-on-year, driven by orders from the Alloresto.fr business in France, consolidated into Just Eat in July last year, and from its Mexican business, which it acquired in February. Like-for-like orders, excluding these changes to the business, also rose by 47%.
----------
Kennedy Wilson Europe Real Estate said it has acquired a non-performing loan secured on a site in Ilford in London for GBP68.5 million. Kennedy Wilson said it has acquired the loan from an unnamed financial institution. It is secured against the freehold interest in Pioneer Point in Ilford, a mixed-use development comprising 184,000 square feet of residential accommodation, plus a three-story block of retail space. Kennedy Wilson will pay GBP68.5 million for the loan, which has an unpaid principal balance of GBP149 million. It said the purchase price is materially below the replacement cost of the property.
----------
Ophir Energy said it has signed a binding heads of terms for a midstream chartering and operating services agreement with Golar LNG for a project in Block R in Equatorial Guinea. Ophir said it signed the agreement with Golar LNG after holding discussions with GEPetrol, Ophir's partner on Block R. GEPetrol is expected to formally ratify the agreement next week, said the company in a statement.
----------
Residential property company Grainger said it has agreed a deal to sell its interest in the New Sovereign Reversions Ltd portfolio for GBP18.5 million. FTSE 250-listed Grainger said it has agreed to sell its 50% stake in the portfolio, a joint venture with Moorfield Real Estate Fund II, to an affiliate of private equity group Lone Star Funds.
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Irish budget carrier Ryanair Holdings said its traffic rose by 16% in April and said its load factor improved by seven percentage points. Ryanair said traffic in the month rose to 9 million compared to 7.8 million a year earlier, with its rolling traffic to the end of April up by 12% to 91.8 million customers. The carrier added its load factor improved in the month to 91%, up from 84% in April last year.
----------
Spirent Communications reiterated confidence it will achieve progress "broadly in line" with its expectations during 2015, following a slow first quarter. In a statement ahead of its annual general meeting, the communications technology company said its revenue for the quarter to end-March was USD96.6 million, down from USD111.9 million a year before. Order intake in the quarter was USD99.4 million, down from USD101.7 million. Strong growth in North America was offset by weaker demand in Europe, the Middle East and Africa, and Asia Pacific.
----------
COMPANIES - INTERNATIONAL
----------
Swiss lender UBS Group said its first-quarter attributable profit rose to CHF1.977 billion from CHF1.054 billion in the previous year. Total operating income improved to CHF8.841 billion from CHF7.258 billion last year. UBS said its wealth management businesses delivered the highest profits since 2008, and net new money was 19 billion francs.
----------
Lufthansa Group reported first-quarter net profit of EUR425 million, compared to a loss of EUR252 million, a year ago. The company noted an extraordinary effect from the premature exchange of JetBlue swaps. This transaction improved the financial result by EUR503 million. Revenue rose to EUR6.97 billion from EUR6.46 billion.
----------
Pimco's flagship Total Return Fund has ended its 17-year reign as the world's largest bond mutual fund, losing the title to rival Vanguard Group's Total Bond Market Index Fund. Pimco's Total Return Fund had USD110.4 billion of assets at the end of April 2015, compared to Vanguard's Total Bond Market Index fund that had USD117.3 billion in assets. Pimco said monthly net flows for the Total Return Fund continued to decline in April and investors pulled a net USD5.6 billion from the fund in the month. April was the 24th consecutive month of withdrawals from the fund, which is down 62% from its peak amount of USD293 billion in April 2013. Last fall, bond guru Bill Gross left his post as chief investment officer at Pimco to join rival investment firm Janus Capital Group.
----------
Google said that it acquired the startup Timeful, which developed an app for Apple's iOS mobile operating system that uses machine learning and data analysis, along with behavioral economic theory, to customize people's digital calendars. Financial details haven't been revealed.
----------
Lafarge and Holcim announced that they have received final approval for their proposed merger from the competition authorities in the US and Canada. All competition approvals necessary for closing the transaction have now been obtained ahead of the expected closing in July 2015. Holcim and Lafarge can now present a final list of divestments to satisfy regulatory requirements.
----------
McDonald's Corp revealed plans to restructure its business to focus more on franchises, and would recast its market segments and cut costs, as the fast food giant grapples with weak global sales. The turnaround plans include restructuring of McDonald's worldwide business and financial updates.
----------
Tuesday's Scheduled AGMs/EGMs

Catlin Group
Randgold Resources
Macfarlane Group
BG Group
Burford Capital
GVC Holdings
Henderson High Income
Spirent Communications
Stratex International
Sherborne Investors
----------
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

Copyright 2015 Alliance News Limited. All Rights Reserved.