Proactive Investors -
- FTSE 100 well below session high of 7,916.67
- Wall Street mixed as earnings digested
- Network International, THG (LON:THG) soar on bid approaches
Caution prevails in New York
The FTSE 100 nursed its gains as US stocks started the week cautiously ahead of a slew of earnings from big names this week by the likes of Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Johnson & Johnson, Procter & Gamble, Netflix (NASDAQ:NFLX), and Tesla.
Around 15 minutes after the New York opening bell, the Dow Jones Industrials Average was just 2 points higher at 33,888, while the Nasdaq Composite fell 0.1%, and the S&P 500 was flat.
FOREX.com market analyst Fiona Cincotta noted trade was subdued on Monday morning as US investors waited for earnings, specifically more banking sector results with regional institutions under the spotlight this week.
“Broadly speaking, the bar is low for earnings season, with a 4.8% decline in 1Q earnings expected,” she said. “Some sectors such as energy, are likely to perform better than most.”
Cincotta noted that, in addition to earnings, investors continue to weigh up the Fed’s next move with officials including New York Fed President John Williams and Cleveland Fed President Loretta Mester due to speak later this week.
“Federal Reserve Governor Christopher Waller said that the Fed will need to hike rates again to tame inflation, which is still far too high,” she said. “The market is currently pricing in an 83% possibility of a 25 basis point hike in May, up from 72% a week ago.”
HSBC could be pinged
HSBC (LON:HSBA)'s biggest shareholder Ping An is likely to vote in favour of splitting the bank up at its annual investor meeting on May 5, Reuters has reported, citing a source familiar with the Chinese insurer.
The source said Ping An, which has around an 8% stake in HSBC, would vote in favour of two resolutions tabled by individual investor Ken Lui, which call for HSBC to restore dividends to 51 cents per share and to provide regular updates on the possibility of spinning off its Asia business.
HSBC has recommended that shareholders vote against the resolutions, and has, since Ping An began urging the spin-off last November, maintained that its global presence is worth more than any such fragmentation would yield.
The global lender’s other institutional shareholders have so far shown little appetite for a break-up, Reuters noted.
Vote for Barclays board
Institutional Shareholder Services (ISS) has urged Barclays PLC (LON:BARC) investors to re-elect all board members at the upcoming annual meeting, despite protests against the board's support for former CEO Jes Staley, who is being investigated for his links with Jeffrey Epstein.
This is according to a report on the Reuters newswire that says ISS suggests waiting for the outcome of the various investigations before influencing director elections.
Barclays has received no new evidence challenging the findings of a regulatory investigation into Staley's relationship with Epstein since his resignation in November 2021, the article noted. Staley's unvested bonuses remain suspended.
ISS's rival advisor, Glass Lewis, recommended voting against bosses' pay over long-term bonuses awarded to former CFO Tushar Morzaria.
1.25pm: Here’s a quick round-up of come of the top risers and fallers
Network International Holdings PLC (LON:NETW) shares rocketed up 9% to 360p after the payments company confirmed a bid proposal from a consortium comprising CVC Advisers and Francisco Partners Management.
THG PLC's shares surged over 31% after confirming a preliminary bid approach from Apollo Global Management, continuing the recent pick up in M&A activity in London.
Sabien Technology Group PLC saw its shares jump nearly 9% after it announced progress in developing a recycling centre. Specifically, Sabien has signed a memorandum of understanding with City Oil Field, Hanyang Corporation, and Woori Technology for a Recycling Project Cluster in the Midlands.
GRIFFIN MINING rose 8% after announcing record first-quarter production since the commissioning of its Chinese Caijiaying Mine in 2005.
Supreme PLC saw its share rise 10% after highlighting an expectation-beating performance in its financial year ended 31 March 2023.
BlueBird Merchant Ventures Ltd saw its shares tumble by as much as 28% after it was revealed it had hit a stumbling block to its progress in South Korea. Specifically, the group faces delays in obtaining Mountain Temporary Use Permits (MTUP) for its Kochang and Gubong gold projects due to additional information and support requirements.
QUIZ PLC (LON:QUIZ) shares fell more than 17% after the company cautioned over the ongoing pressures on consumer spending, whilst reporting lower like-for-like revenues in recent months.