HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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HSBC Holdings is undertaking a review of the best place for its global headquarters, Chairman Douglas Flint will confirm at the banking group's annual meeting of shareholders on Friday, a move that follows previous criticism from HSBC executives of the UK's increasing levy on banks. "As part of the broader strategic review taking place, the board has therefore now asked management to commence work to look at where the best place is for HSBC to be headquartered in this new environment. The question is a complex one and it is too soon to say how long this will take or what the conclusion will be; but the work is underway," Flint will tell shareholders.
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The UK government's stake in Lloyds Banking Group has fallen by another percentage point just two weeks ahead of the UK General Election, according to the body responsible for managing the state's stakes in bailed out banks on Friday. According to UK Financial Investments, the UK economic and finance ministry's stake in Lloyds has been reduced to 20.95% from 21.99% previously.
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Publisher Pearson reiterated its full-year earnings guidance as the strong US dollar helped boost sales in the first quarter of 2015, and Chairman Glen Moreno announced his intention to step down in the next year. Moreno has been chairman for more than nine years. A committee headed by Independent Director Vivienne Cox will seek a successor for Moreno. Pearson continues to expect adjusted earnings per share of between 75 pence and 80 pence for the full year, assuming sterling exchange rates against the dollar and other key currencies as of January 21.
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Pharmaceuticals giant AstraZeneca maintained its full-year guidance, as the strong dollar hit its revenue in the first quarter of 2015, and it posted a decline in core earnings per share and operating profit due to continued investment in its pipeline. AstraZeneca posted a pretax profit of USD678 million, up from USD638 million, as a decline in revenue of 6% to USD6.06 billion from USD6.46 billion was offset by lower cost of sales and other operating income of USD377 million. Revenue growth was hit by the strength of the dollar, and at constant currency revenue rose 1%. However, at the core level, operating profit was down 4%, mostly as a result of reduced margin and higher investments and research and development costs, as AstraZeneca continued to invest in developing its pipeline and sales and marketing.
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Defence and aerospace group BAE Systems said it has started a review of part of its US Intelligence and Security business after seeing a number of expressions of interest in the unit. FTSE 100-listed BAE said its manpower and services businesses within the US Intelligence and Security arm, which spans technical, mission and IT support services and which predominantly serves the US government, has generated external interest and a number of enquiries. As a result, BAE has hired external adviser to back a strategic review of the business.
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Dixons Carphone said it has struck a deal to sell its 83% stake in The Phone House Netherlands to Relevant Holdings, a vehicle set up by Dutch telecoms retailer Optie1. Dixons Carphone did not provide any financial details on the sale. Following completion of the deal, expected to happen in June, Dixons Carphone will retain a minority stake in the Dutch retailer and will work to develop its Connected World Services' partnerships in the Netherlands, with an initial focus on insurance and technical support services.
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Motor insurer Admiral Group said it traded in line with expectations in the first quarter and said it has decided it will not issue interim management statements going forward. The company said trading in the first quarter to the end of March was in line with its expectations and said no significant developments have occurred since it published its 2014 results in March.
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Reckitt Benckiser Group reported like-for-like sales growth across the business of 5% in the first quarter on a year earlier, with solid performances in its health and hygiene franchises slightly offset by like-for-like sales declines in its home and portfolio brands businesses. The consumer goods group, which makes brands ranging from cleaning products such as Cillit Bang to ibuprofen brand Nurofen, said like-for-like net revenue growth in its health business was 13% in the quarter, with strong growth for its Nurofen, Gaviscon, Strepsils, Durex and Airborne brands and with its consumer health franchise generally boosted by a strong cold and flu season.
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J Sainsbury said it will cut 800 jobs as part of its restructuring plans, as it works to "improve efficiency and customer service in stores". The company said its department and deputy manager positions will be reviewed with more resource invested in other shop floor roles. Reducing the number of department manager roles will give in-store staff the opportunity to extend their hours or take additional shifts, meaning more customer-facing staff will be on hand to offer service, it said. Sainsbury's aims to make GBP500 million in cost savings over the next three years to help fund investments in customer service, price and quality, and said the job cuts will help to achieve this.
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GKN said its Driveline business has won a contract to supply an all-wheel drive system in China and said its Aerospace arm has secured a deal with Gulfstream Aerospace Corp to supply wing skins for G500 and G600 business jets. The FTSE 100-listed aerospace and automotive components company said its GKN Driveline business has become the first Tier One supplier for the design, development and manufacturing of all-wheel drive systems to be used on SAIC Motors' new MG GS compact SUV. It will also provide the front wheel-drive system for the car too.
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UBM reiterated its expectations for the full year, as it said it had performed in line with expectations in the first quarter of 2015. The company said growth in its Events business in the quarter to end-March had been as anticipated, with its largest events continuing to drive its performance. Other Marketing Services also performed as expected, and its PR Newswire business performed "satisfactorily", UBM said. Its integration of Advanstar, which it acquired for USD972 million last December, is progressing well with synergies in line with its expectations.
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Aerospace and defence manufacturing company Cobham said it has struck a deal to sell its Weinschel and Inmet business to US technology manufacturer API Technologies in an USD80 million all-cash deal. Weinschel and Inmet were acquired by Cobham as part of the acquisition of telecoms equipment manufacturer Aeroflex in September last year.
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Rotork said its order intake dropped in the first quarter on the back of the challenging conditions in oil and gas markets and continued uncertainty in some of its markets, with revenue falling on the back of the slow start to the year and the timing of projects.
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Petra Diamonds said it will launch a USD300 million note issue in order to fund the construction of a processing plant at the Cullinan mine in South Africa. The FTSE 250-listed diamond miner said it will issue USD300 million in senior secured lien notes due 2020. Petra's lender group has also agreed, in principle and subject to the closing of the note issue, to increase its debt facilities by around USD81.6 million to USD302.4 million.
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MARKETS
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UK stocks are trading higher mid-morning, with HSBC Holdings leading the FTSE 100.
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FTSE 100: up 0.6% at 7,094.03
FTSE 250: up 0.3% at 17,738.38
AIM ALL-SHARE: up 0.3% at 753.48
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The euro is up against the dollar ahead of the Eurozone finance ministers meeting in Riga.
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GBP: up at USD1.5128
EUR: up at USD1.0863

GOLD: down at USD1191.01 per ounce
OIL (Brent): up at USD65.46 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Labour leader Ed Miliband is set to claim on Friday that Prime Minister David Cameron has diminished the influence of the UK globally, as Cameron continued his warnings of the dangers of a coalition between Labour and the Scottish National Party and made a renewed push to win over UK Independence Party voters with the launch of an English manifesto.
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Polling remains mixed as the UK election campaign moves into its final fortnight, with the Tories taking a relatively solid lead in two polls, but Labour repeating the trick in pair of other surveys. The Tories took a four-point lead in the latest ComRes poll for the Daily Mail and ITV News, rising two percentage points to 36% against 32% for Labour, which fell a percentage point. The latest Survation poll also has the Tories leading by four points at 33% to Labour's 29%. But the daily YouGov/The Sun survey had Labour gaining one percentage point to 35%, giving them a two-point lead over the Tories at 33%. Panelbase also has Labour in the lead, by three points at 34% to 31% for the Tories.
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British households perceive that the value of their home increased in April, a survey from Knight Frank and Markit Economic showed. The house price sentiment index, or HPSI, rose to 58.2 in March from 57.5 in the previous month. This marked the twenty-fifth consecutive month of the index remaining above 50. A reading above 50 signals a rise in house prices, while a figure below 50 indicates a decline. The latest increase was only moderate as compared to March, suggesting that households believe prices continued to rise in spite of the uncertainty surrounding the outcome of next month's General Election.
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Eurozone finance ministers expressed frustration over the slow pace of negotiations between Greece and its creditors, with the cash-strapped country appearing no closer to accessing bailout funds. The leftist government of Greek Prime Minister Alexis Tsipras has been struggling to agree with the international creditors on reforms that would unlock EUR7.2 billion remaining under the country's existing bailout. Fears are rife that Athens may soon go bankrupt and end up having to leave the eurozone.
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German business confidence improved for the sixth consecutive month in April, reports said, citing survey results from Munich-based Ifo Institute. The business confidence index rose more-than-expected to 108.6 in April from 107.9 in March. It was forecast to rise to 108.4. The current conditions index came in at 113.9 in April. Economists had forecast it to rise slightly to 112.4 from around 112 in March.
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