Proactive Investors -
- FTSE 100 makes a bright start to the week
- Currys jumps on raised guidance
- European Commission upgrades growth forecasts
HSBC's Asian business is "motoring" says CEO
HSBC Holdings PLC (LON:HSBA) said all parts of its Asian business are now “motoring” as it detailed targets for growth in lending, revenue and return on equity.
"All parts of HSBC Asia are now motoring," said Chief Executive Noel Quinn. "In mainland China, we are ideally positioned to facilitate business with the rest of the world; in South and Southeast Asia, we have invested heavily in Singapore, and we have significantly bolstered our growing business in India."
The Asia-focused lender gave the update as it prepares to host a week-long seminar for investors and analysts in Hong Kong and Singapore.
"In addition to our core strength in Hong Kong, we now have growth engines in mainland China, India, Singapore and beyond," Quinn said.
The FTSE 100-listed bank said it is targeting mid-single-digit percentage growth in lending over the medium to long term for its Asia business but is more cautious in the short-term. It aims for mid-teens return on tangible equity.
The banks targets high-single-digit percentage growth in revenue for its Wealth arm in Asia.
For the group as a whole, HSBC targets a RoTE of at least 12% from 2023. For 2022 it had reported a return on average tangible equity of 9.9%.
Shares in HSBC rose 1.4% to 608.30p in London late morning.
The FTSE 100 is close to best levels for the day now at 7,789.42, up 34.80 points, or 0.45%. It earlier hit a session high of 7,792.24.
Center Parcs up for sale - FT
Canadian private equity firm has put UK holiday resort Center Parcs up for sale and is looking for £4-£5bn, according to the Financial Times.
Citing people familiar with the deal, the FT said the decision to go ahead with the sale marks a bold move for Brookfield as the UK faces falling property values and higher interest rates.
But it could also net Brookfield a windfall for Brookfield after paying just £2.4bn for the holiday village operator from Blackstone (NYSE:BX) in 2015.
The FT said Brookfield has appointed investment bankers who have been sounding out potential buyers in the past week, the people said.
Center Parcs operates six resorts in the UK and Ireland, offering attractions such as water parks and forest playgrounds with its five UK sites were independently valued at £4.1bn in April, based on the value of the real estate alone.
The company hosts more than 2mln guests a year with 98 per cent occupancy, according to Brookfield.
Travel and leisure have been strong performers in the equity as consumers have rediscovered their loves of sun, sea and sand after being locked up during the pandemic.
Airlines and hotels have reported bumper bookings in the past quarter with strong booking levels already reported for the Summer.
Strong governance needs to be a priority for new BAT (LON:BATS) boss
News of a new CEO at BAT has left the shares little changed.
Derren Nathan, head of equity research, Hargreaves Lansdown (LON:HRGV) thinks "strong governance needs to be front and centre" of Tadeu Marroco priorities going forward.
Nathan points out he faces a "few burning challenges" as he takes up the helm at the firm explaining the market hasn’t taken well to the almighty $635mln "wrist slap" imposed last month by the US Department of Justice and Office of Foreign Assets, for poor disclosures regarding exports to North Korea in 2017.
Although with $540mln already provided for in the company’s books, most of this should have been in the price already, Nathan reckons.
He also noted whilst new categories of tobacco products are a core focus these products are also coming under increasing scrutiny as shown by Australia’s decision to ban imports of non-prescription vapes.
BAT shares were trading 0.3% higher at 2,715p in London mid-morning while the FTSE 100 was pushing back towards its best levels for the session, now up 33 points at 7,788.
Staff shortages hit health and education sectors hardest, report finds
Staff shortages in education and health are worse than in any other area of the UK economy as public sector wages fall further behind those offered in the private sector, according to a survey of employers.
Six out of 10 employers in education said they had vacancies that were hard to fill, while more than four in 10 expected “significant problems” filling posts over the next six months, a report by the CIPD organisation for HR professionals showed.
In healthcare, 55% of employers had hard-to-fill vacancies, compared with 40% of all private sector employers, according to the survey.
The CIPD found that private sector employers were more likely than those in the public sector to improve job quality when they were struggling to recruit, for example, by offering better career pathways or greater flexibility.
Public sector employers, in contrast, were more likely to respond by loading more duties on to their existing staff.
Concerns over workload and a growing recruitment crisis in schools have fuelled the resolve of teaching unions to seek a mandate from members to launch co-ordinated strike action from the autumn.
Meanwhile the FTSE 100 remains around 19 points to the good at 7,774.