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UK market update – HSBC initiates share buyback, Tesco suffers attempted hack

Published 25/10/2021, 07:38
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By Samuel Indyk

Investing.com – At 07:36BST, FTSE 100 Futures are trading higher by 0.2% at 7212.

In FX markets, GBP/USD is trading at 1.3768, EUR/GBP is trading at 0.8462. The US Dollar Index is down 0.1%.

Today’s calendar highlights include German Ifo survey, US Chicago Fed National Activity Index and a speech from the Bank of England’s Silvana Tenreyro.

Stocks

HSBC (LON:HSBA) - Q3 reported profit after tax up $2.2 billion to $4.2 billion. Increase was driven by a release of expected credit losses and other credit impairment charges and a higher share of profit from associates. Net interest margin of 1.19% was broadly stable compared with Q3 2020. Expect a net release of ECL for 2021, with the potential for a further small net release of ECL in 4Q21, dependent on offsetting levels of stage 3 charges. Expect NIM to begin to increase in the coming quarters from lending growth and earlier than anticipated policy rate rises. Intend to initiate a share buyback of up to $2 billion.

Tesco (LON:TSCO) - The supermarket’s online store was hit by an attempted hack over the weekend, leaving shoppers unable to amend orders or book new deliveries. The company said there was no reason to believe that the issue impacted customer data.

AstraZeneca (LON:AZN) - Imfinzi plus chemotherapy significantly improved overall survival in 1st-line advanced biliary tract cancer in TOPAZ-1 Phase III trial at interim analysis.

Plus500 (LON:PLUSP) - Q3 revenue down 2% to $211.4 million. EBITDA down 4% to $128.6 million. Board remains confident in the outlook for the company. Expects FY 2021 revenue and EBITDA to be ahead of current compiled analysts' consensus forecasts.

Tullow Oil (LON:TLW) - Phuthuma Nhleko appointed as an independent non-executive Director and Chairman-designate.

Ryanair (LON:RYA) - Is being sued by On The Beach (LON:OTB) for blocking it from booking flights with the airline.

ContourGlobal (LON:GLO) - Operational performance remained strong although slightly below 9-month 2020 with an average availability factor of 93.9% in the first 9 months of 2021. Adjusted EBITDA up 14.4% to $622.2 million. To pay a Q3 dividend of 3.2333 pence per share.

Petropavlovsk (LON:POG) - Q3 total gold production fell 2% to 111.6 koz. Own mined gold production increased 17% to 101.6koz. Q3 gold sales totalled 120.1 koz. Affirms its full year 2021 production guidance of 430-470 koz.

Prudential (LON:PRU) - Mandated banks to arrange fixed income investor calls for a benchmark USD-denominated transaction.

IP Group (LON:IPO) - Following the completion of a funding round by a portfolio company in its top 20 most valuable holdings, the company has recorded a net realised and realised fair value gain of approximately £27.5 million. 

James Fisher and Sons (LON:FSJ) - Improvement in the Fendercare ship-to-ship transfer business remains below the rate previously expected. A recent deterioration in the condition of a financially distressed customer has increased bad debt risk by circa £2 million. Now anticipates Underlying Operating Profit for the full year, before separately disclosed items, to be in the range of £27-£32 million. Management is performing a detailed review of the Group's cost base and balance sheet, continuing to advance at pace the divestment of non-core businesses and assets aimed at generating significant proceeds over the next year.

EasyJet (LON:EZJ) - Upgraded to hold from sell at Stifel.

Weir Group (LON:WEIR) - Upgraded to outperform from neutral at BNP Paribas (PA:BNPP).

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