FTSE 100 Stay: ‘Palpable relief’ as HSBC earnings soar; EU inflation in focus

Collapsed London pizza chain Mamma Dough purchased out saving 47 jobs

Administrators have bought collapsed South London pizza chain Mamma Dough, saving 47 jobs, however two of its eating places will shut.

Mamma Dough entered administration simply earlier than Christmas, blaming “soaring cost inflation and energy bills, combined with the impact of the cost-of-living crisis and train strikes on consumer spend and footfall”.

Administrators Begbies Traynor have now bought 5 Mamma Dough eating places — in Brixton, Peckham, Ladywell, Sydenham and South Norwood — to London Dough Co: a newly created agency owned by the administrators of Balham’s Exhibit Bar, holding 47 of the chain’s workers of their jobs.

However, websites in Honor Oak and Whitechapel will not be included, and seem set to shut.

HSBC and housebuilding shares rally, BP shares decrease

HSBC shares have risen 4%, up 21.9p to 595.7p, after its first quarter earnings determine of $12.9 billion got here in considerably forward of City hopes. Investors additionally cheered the lender’s affirmation of a share buyback programme of as much as $2 billion and reintroduction of a quarterly dividend by means of the fee of 10 US cents a share.

Housebuilders featured on the risers board following the experiences yesterday that the federal government is planning to increase help for first time consumers. Persimmon shares rose 43.5p to 1357.5p and Taylor Wimpey by 3p to 131.2p.

BP shares struggled regardless of the oil large reporting better-than-expected outcomes for the primary quarter. The heavyweight blue-chip fell 3% or 18.7p to 515.7p throughout a typically weak session for commodity-focused shares.

The FTSE 100 index was 23.90 factors larger at 7894.47 and the FTSE 250 index improved 78.02 factors to 19,503.16. Vistry and Redrow shares each rose 3%, whereas journey firm TUI rallied 16.6p to 524p and cruise ship operator Carnival improved 5% or 30.4p to 684.8p.

Greene King again in black however CEO warns to “expect a tough backdrop to continue”

Greene King today said it was back in the black as one of the UK’s biggest pub chains announced a surge in sales.

The firm posted profits of just shy of £100 million for 2022, while revenues climbed £834 million to £2.2 billion amid a reopening of venues following the end of coronavirus restrictions.

However the pub chain cautioned: “We remain mindful of the significant cost pressures impacting both consumers and our business and we expect the tough environment to persist through the year.”

Wagamama owner defies activist investors with strong growth

Shares in Wagamama owner The Restaurant Group soared as it defied activist investors with strong growth so far this year, setting the stage for it to accelerate the rollout of Wagamama restaurants.

Sales at Wagamama were up 9%, while it also reported growth in its pubs, leisure and concessions divisions. As a result, the group now plans to open eight new Wagamama restaurants this year instead of five.

The growth will help TRG’s case in its fight with activist investors Oasis, which last week said it would aim to vote down CEO Andy Hornby’s “disproportionate” pay packet as it called for radical change.

Shares in The Restaurant Group are up 9.8% to 44.7p.

FTSE 100 higher after calm April

The new month for European stock markets has opened on the front foot, with the FTSE 100 Index extending April’s robust performance by moving 19.16 points higher at 7889.73.

Strategists at Deutsche Bank pointed out this morning that April looked to have been the least volatile month since the pandemic, with just five of the 38 non-currency assets in its research sample seeing a move of more than 3% in either direction. This follows the heightened volatility seen during the banking industry turmoil in March.

Deutsche Bank said one factor keeping returns subdued were growing expectations that the Federal Reserve would deliver another hike at their May meeting.

Even after the OPEC+ group decided to cut output, Brent crude oil gave up its initial gains to keep up its record of falling in every month of 2023 so far. The benchmark traded below $80 a barrel this morning.

Overhaul planned for US deposit insurance

JPMorgan Chase shares rose 2% on the back of its First Republic rescue, but the rest of the Wall Street banking sector came under pressure yesterday on plans for a review of America’s deposit insurance system.

In response to the failures of Silicon Valley Bank and Signature Bank, the US Federal Deposit Insurance Corporation released a report addressing concerns over the impact of uninsured depositors in specific pockets of the banking system.

It also warned that the speed with which information is disseminated and the speed with which depositors can withdraw funds in response to information may contribute to faster, and more costly, bank runs.

While the overwhelming majority of deposit accounts remain below the deposit insurance limit, it said the growth in uninsured deposits has increased the exposure of the banking system to bank runs. At its peak in 2021, uninsured deposits accounted for nearly 47% of domestic deposits, higher than at any time since 1949.

It favours targeted coverage where business accounts are treated separately and have a higher coverage cap than individuals. This would require congressional approval.

Struggling Superdry seeks fresh cash with share sale

Struggling fashion brand Superdry is to sell £15 million worth of shares as it deals with weaker consumer spending.

Last month, the retailer said it was considering a fundraise in a bid to shore up cash to help it “emerge from the current turbulence”. It blamed cost-of-living pressures for weaker demand.

The business has been seeking extra funding to help it put a transformation plan in place. In March, it sold its IP rights in Asia for $50 million.

BP profits beat forecasts but ease back from record-breaking levels year-on-year

BP’s key profit measure for the first quarter fell year-on-year, as oil and gas prices eased back from elevated highs, but the FTSE 100 oil major made £4 billion in the period, more than City experts had forecast.

Underlying replacement cost profit came in at $5 billion, down from $6.2 billion a year ago but up from $4.8 billion the previous quarter.

Consensus forecasts has pointed to earnings of $4.3 billion, or £3.4 billion.

The annual drop leaves profit heading away from the controversial record peaks of 2022, in line with oil and gas prices easing back as the stresses in energy markets after Russia’s invasion of Ukraine ease. Oil prices peaked around $130 a barrel, are now around $80. But the overall extent of the earnings will leave the industry in the spotlight during the cost-of-living crisis.

Last year the government slapped a windfall tax on the sector. Today’s earnings are likely to stoke calls for more action.

BP called the earnings “resilient”.

Focus on EU inflation, FTSE 100 set for further progress

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

HSBC boss Noel Quinn laid out a fresh vision for the development of SVB UK following its acquisition 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.