The FTSE is set to open slightly higher today as two of the UK’s biggest companies report huge profits.
HSBC published its results early this morning, with quarterly profit rising to $12.9 billion thanks mostly to the impact of the reversal of a write-down on its French business as the likelihood of a sale falling through increased, plus a $1.5 billion gain on the emergency £1 purchase of Silicon Valley Bank UK.
With BP also reporting today, we’ll see another company announce quarterly profits well into the billions.
Focus on EU inflation, FTSE 100 set for further progress
07:26 , Graeme Evans
US markets held firm on Monday after a regulator-backed deal saw JP Morgan Chase swoop for the bulk of troubled lender First Republic.
The intervention involving America’s 14th largest bank helped shares in the Wall Street giant to close 2% higher, while the Dow Jones Industrial Average and S&P 500 index finished near to their opening marks.
The focus now turns to tomorrow’s US Federal Reserve committee meeting, when policymakers are expected to announce another 0.25% rise in interest rates.
Today’s EU inflation number is also expected to be a key factor in determining whether the European Central Bank goes for a 0.25% or 0.5% rate rise later this week.
The flash CPI figure for April, which is due for release at 10am today, is predicted to edge up to 7% from 6.9% the previous month.
The resilient performance on Wall Street means the FTSE 100 index is forecast by CMC Markets to open 14 points higher at 7884. In April, London’s top flight rose by 3.4% and is 7% stronger in the year-to-date.
Noel Quinn lays out fresh vision for SVB UK as HSBC profits soar
07:21 , Simon Hunt
HSBC boss Noel Quinn laid out a fresh vision for the development of SVB UK following its acquision of the bank in March.
Quinn said he planned to change the name of the entity but keep its head offices on Finsbury Square and give it the opportunity to grow into a global business.
In a media call he told the Standard: “It’s a unit we purchased and we want to keep it with a separate identity and separate purpose.
“They’re known for their expertise in supporting the technology and life sciences sectors…we want to give them the opportunity of building that on a global basis.”
It comes as the Canary Wharf based bank reported a surge in pre-tax profits by more than four billion dollars (£3.2 billion) in the first three months of 2023, while revenue soared by 64% to 20.2 billion dollars (£16.2 billion) compared to the same period 12 months ago, with the firm crediting the rise to higher net interest income due to rate rises across the globe.
Friday’s top stories
07:02 , Daniel O’Boyle
Good morning. Here is are a selection of Friday’s biggest news stories:
