HSBC Holdings Share News (HSBA)

LONDON (Alliance News) - Shares have opened flat in London Monday, as some good news from the travel sector offset a set of disappointing economic readings from China.

easyJet is leading FTSE 100 gainers after Irish rival Ryannair raised its guidance for the current financial year, while reporting strong growth in profit and revenue in the first half. easyJet shares are up 2.3% and Ryannair shares are up 8.7%.

HSBC shares are down 2.1% after issuing its third-quarter earnings. HSBC said it faces a significant penalty from the ongoing talks with regulators as part of their currency-market investigation.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.1% at 6,543.20
FTSE 250: up 0.3% at 15,542.12
AIM ALL-SHARE: down 0.1% at 719.48
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Hang Seng: closed down 0.3% at 23,915.97
Nikkei 225: market closed for Culture Day holiday
DJIA: closed up 1.1% at 17,390.52
S&P 500: closed up 1.2% at 2,018.05
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GBP-USD: flat at USD1.5980
EUR-USD: down at USD1.2492

GOLD: down at USD1,170.06 per ounce
OIL (Brent): down at USD85.52 a barrel

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

08:45 Italy Markit Manufacturing PMI
08:50 France Markit Manufacturing PMI
08:55 Germany Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
09:30 UK Markit Manufacturing PMI
14:30 US Fed's Evans Speech
14:30 Canada RBC Manufacturing PMI
14:45 US Markit Manufacturing PMI
15:00 US Construction Spending (MoM)
15:00 US ISM Manufacturing PMI and Prices Paid
17:40 US Fed's Richard Fisher's speech
17:50 Canada BoC Governor Poloz Speech
n/a US Total Vehicle Sales
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China's non-manufacturing business activity expanded at a slower rate in October, data from the National Bureau of Statistics showed. The non-manufacturing business activity index decreased to 53.8 in October from 54 in September. This indicated a slower rate of growth.
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China's manufacturing sector continued to expand as expected in October, the results of a survey by Markit Economics and HSBC Bank showed. The HSBC manufacturing purchasing managers' index came in at 50.4 in October, confirming the flash estimate and the expectations of economists. This was slightly higher than 50.2 in September.
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Ireland's manufacturing sector growth gathered momentum in October, data from Markit Economics showed. The seasonally adjusted Investec Purchasing Managers' Index rose to 56.6 from 55.7 in September. The reading signalled substantial strengthening of business conditions. Manufacturing production increased at a faster pace with panellists attributing the latest growth in output to higher new orders and stock building efforts.
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Prime Minister David Cameron's pledge to curb the number of migrants entering Britain from the EU could lead German Chancellor Angela Merkel to drop her efforts to keep Britain in the bloc, a report said Sunday. Merkel warned Cameron on the sidelines of the EU summit in October that he was reaching a "point of no return" by persisting in his plan to introduce quotas for EU migrants, Der Spiegel magazine reported, citing anonymous government officials. Merkel reportedly told Cameron that if he follows through with the measure, "That's it."
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The pro-Russian separatists in eastern Ukraine on Sunday defied international criticism and ongoing violence by holding both parliamentary and leadership elections in areas they control. Organizers in the "Donetsk People's Republic" said after more than half of the votes were counted that incumbent leader Alexander Zakharchenko is expected to win with more than 70%, Russia's Interfax news agency reported.
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At least 200 members of a pro-government Sunni tribe have been executed by the Islamic State militant group in the western Iraqi province of Anbar over the course of three days, security and local officials said on Sunday. Beginning Thursday, the executions took place in separate incidents and targeted tribesmen from the al-Bu Nimr tribe in Anbar, a security official told dpa.
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Israeli Prime Minister Benjamin Netanyahu on Sunday urged calm after weeks of unrest in Jerusalem and pledged to keep in place long-standing prayer divisions at a flashpoint Muslim-Jewish holy site in the disputed city. Tensions culminated last week after a Palestinian shot and critically wounded a far-right Jewish activist who had advocated that Jews be allowed to pray at the Temple Mount, known to Muslims as the Holy Sanctuary. Israeli police shot the Palestinian gunman dead in a shoot-out in East Jerusalem.
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BROKER RATING CHANGES
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GOLDMAN CUTS AVEVA GROUP TO 'SELL' ('NEUTRAL') - TARGET 1420 (1950) PENCE
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Liberum Capital Initiates AA PLC At Buy, Price Target 417 Pence
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COMPANIES - FTSE 100
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HSBC Q3 Reported Pretax Profit Up 2% At USD4.61B Vs USD4.53B In Q313; Q3 Loan Impairment Charges USD760M Vs USD1.59B; Q3 Provision For UK Compliance USD213M; Q3 Provision Of USD378M For UK Forex Probe; Says FX Talks Likely To Result In Significant Financial Penalty
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Diageo said it has agreed a deal to buy Don Julio tequila while selling Bushmills Irish whiskey, strengthening its presence in Mexico. Diageo is buying the tequila brand from Casa Cuervo, which will also end the production and distribution of Smirnoff vodka in Mexico. In return, Jose Cuervo Overseas is buying Bushmills. The transaction will yield USD408 million to Diageo when completed, expected in early 2015 subject to approval. The transaction is expected to break even after three years and Diageo said the proceeds will be used to reduce the company's debt. It expects a dilution in earnings per share of 0.6% in the year to end-June 2015.
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Denmark-based biotechnology company Genmab said that it has entered into an agreement with GlaxoSmithKline and Novartis Pharma to transfer the ofatumumab collaboration with GSK to Novartis. The transfer of the collaboration follows an April 2014 announcement in which Novartis, as part of a definitive agreement reached with GSK, agreed to acquire GSK's oncology products including ofatumumab (the GSK/Novartis Transaction).
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Carnival, the world's largest cruise company, unveiled the cruise industry's first-of-its-kind hybrid wireless network, an enhanced high-speed service to eventually be rolled out to all 101 of its ships on all nine of its brands. According to the company, this technology innovation is expected to revolutionise how millions of its passengers stay in touch during their cruise and generate even greater interest in cruise vacations. Carnival's backbone connectivity network, known as WiFi@Sea, will integrate a combination of strategically located land-based antennas installed along cruise routes, Wi-Fi from a port connection and advanced satellites.
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Former Xstrata chief Mick Davis has made another attempt to re-enter the industry, after tabling a multi-billion pound bid for a portion of Anglo American, The Sunday Times reported. The bid, understood to have been made in recent weeks, marks the second attempt by Davis to buy up assets from a mining major to form the centre of his new venture, X2 Resources Ltd, the paper said.
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Tesco has started considering plans to sell a stake in its banking arm as it accelerates plans to raise billions of pounds in new capital, The Daily Telegraph reported on Saturday. The supermarket group is understood to be holding talks about a potential partial float of Tesco Bank, which could raise between GBP500 million and GBP1 billion.
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The Royal Bank of Scotland Group has inked an agreement with the City of London Police to provide them with free training and advice on financial crime, the Financial Times reported. The company's expertise in equities and markets, financial instruments, international jurisdictions, foreign languages and cybertechnology could be of use to the law enforcers.
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Non-executive directors at Standard Chartered are intending to meet with the bank's chairman to discuss a succession plan to replace Chief Executive Peter Sands next week, the Financial Times reported on Friday. Some of the biggest shareholders in the bank have either told or plan to tell Chairman John Peace that he would accelerate a plan to replace Sands, the FT said, citing two people familiar with the discussions.
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COMPANIES - FTSE 250
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Events marketing and communications services business UBM outlined a new strategy for its Events business, titled "Events First", which it hopes will lead to cost savings starting in 2016 that will build to GBP10 million per year. UBM said this strategy will drive "profitable growth by focusing its resources on its largest and most profitable shows, increasing its efficiency and effectiveness through the consistent use of standardised systems, and focusing on operational excellence." The company will rationalise its smaller Events, and exit from some of its "Other Marketing Services" activities that are "not well aligned" to its Events business, UBM said.
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Betfair Group said revenue rose in the second-quarter, boosted by an increase in customer numbers after a strong World Cup. The online bookmaker said revenue in the three months to October 31 rose 22% to GBP119 million, and revenue was up 13% when normalised for unusually high gross win margins. Following the World Cup in July, "the recent growth in customer activity has continued with the active customer base up 30%" in the second quarter, Betfair said, adding that it expects to meet full-year earnings expectations.
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Ophir Says Still In Takeover Talks With Salamander Energy; Says Sent Salamander A Letter Confirming Possible Share Exchange Offer
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Telecity Group reaffirmed its revenue growth and capital expenditure guidance for the year, after reporting strong organic revenue growth for the year so far and good gross order wins. In a statement, the data centre operator said revenue at constant currency rates are up 9.4% so far in 2014, while the earnings before interest, tax, depreciation and amortisation margin remains "strong" at 46.9%. It expects the margin, which was in line with the first half of the year, to stay at a similar level for the final quarter.
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Hansteen Holdings said it has sold the Hansteen UK Industrial Property Unit Trust, a UK multi-let industrial property portfolio, in two transactions for a total of GBP146.1 million after the deduction of rental top-ups. In a statement, Hansteen said the 41 assets in the unit trust have been acquired by a fund advised by Brockton Capital LLP in a partnership with Dunedin Property for GBP110.5 million. A separate 50/50 joint venture between Brockton Capital and Hansteen has acquired Saltley Business Park in Birmingham for a net price of GBP35.6 million and Hansteen will continue to manage the site.
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Just Eat said it remains confident about its full-year results after the strong momentum it reported at the half year continued through the third quarter. The online and mobile takeaway food ordering platform said total orders in the three months to September 30 rose 56% on the year, and were up 51% on a like-for-like basis which excludes the consolidation of the orders from its French business from July. "We are in an excellent position as we enter the important winter period and remain confident for the full year," Chief Executive David Buttress said in a statement.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Ryanair Holdings raised its guidance for the current financial year, after reporting strong growth in profit and revenue in the first half, driven by higher passenger numbers, average fares and lower fuel costs. Europe's largest low-cost airline reported a net profit of EUR795 million for the six months to September 30, up from EUR602 million a year earlier, as revenue grew to EUR3.54 billion, from EUR3.26 billion.
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Rangers International Football Club appointed Derek Llambias to its board as a non-executive director, the latest change at the top of the Scottish football club since Sports Direct International PLC founder Mike Ashley started building his stake in the club. Llambias, who has been working as a consultant to the Rangers board since Tuesday last week, is the former managing director of Newcastle Football Club, which is itself owned by Ashley. Llambias is a long-time friend and associate of Ashley.
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AFH Financial Group said it has increased its funds under management above the GBP900 million mark with the acquisition of the assets of a chartered financial planners business headquartered in Cornwall. In a statement, AFH said it has acquired Knight O'Byrne Ltd for up to GBP1.2 million, with GBP525,000 paid in cash on completion of the deal, with a further amount of up to GBP675,000 in cash payable over the next two years and two months in three tranches.
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Rose Petroleum said it has bought another 4,004.83 gross acres from the State of Utah and private owners within its Mancos development area and 657.83 gross acres in its Gunnison Valley Unit in the Paradox development area, Eastern Utah. In a statement, the company said it is paying USD188,024.09 in total for the leases, an average cost per acre of USD40.33.
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Consort Medical said its rights issue has got acceptances for 95.14% of the new shares on offer, with the rest to be taken up by Investec as the underwriter of the issue. In a statement, the company said it had received valid acceptances for 17.4 million shares under the five-for-eight rights issue it announced at the end of September.
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COMPANIES - INTERNATIONAL
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French advertising and communications firm Publicis Groupe said it has entered into a definitive agreement to acquire US-based technology consulting company Sapient Corp for USD25.00 per share or USD3.7 billion in cash. Publicis.Sapient, the newly created platform will focus exclusively on digital transformation.
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Argentina has banned Procter & Gamble from doing business in the country, accusing the consumer products giant of tax fraud. The company is accused of having exaggerated imports to get cash out of the South American country, and reduce its tax payments. Procter & Gamble is believed to have billed imports of razors and certain other toiletries from Brazil for USD138 million. The tax agency AFIP wants the company to pay back the foreign currency that was sent out.
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Monday's Scheduled AGMs/EGMs

Plutus PowerGen
Sinclair IS Pharma
New World Resources
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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