HSBC names first female CFO, announces restructuring
LONDON – November 5, 2020: Fog covers the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and commercial office block No. 1 Canada Square.
Dan Kitwood Getty Images News | Getty Images
HSBC on Tuesday announced a major restructuring and named Pam Kaur – currently the group’s chief risk and compliance officer – as its first female chief financial officer.
Kaur will assume the post of CFO on January 1, taking over from interim Chief Financial Officer Jon Bingham.
The bank also announced plans to streamline its business in an effort to “reduce duplication of processes and decision-making.” From January, it will operate through four divisions: Hong Kong, UK, international wealth and primary banking, and corporate and institutional banking.
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HSBC share price history
Saab rose 7% after beating earnings
Swedish defense company Saab tops the list Stoxx 600 earnings in morning trade, up 6.8% after beating analysts’ expectations for earnings.
The used car company, which now makes military products and services including the Gripen fighter jet, reported operating income that rose 38% year-on-year to 1.187 billion Swedish kronor ($112.8 million), compared with estimates of 1.14 billion kronor.
Saab saw order bookings rise 41% in the quarter and reiterated its full-year outlook.
Philippine military officers (L) inspect a mock-up model of Sweden’s SAAB Gripen multi-role fighter jet at the Asian Defense and Security Exhibition (ADAS) in Manila on September 25, 2024.
Ted Aljibe Afp | Getty Images
“We continue to increase demand as European countries need to replenish their defense stocks, which requires long-term efforts,” CEO Micael Johansson said in a statement. “We are expanding to meet this growing demand, for example by investing in capacity, automating production and building new factories.”
Analysts have previously stated that Sweden’s accession to NATO earlier this year will provide a tailwind for the company.
SAAB share price history.
European shares were mixed in early trade
The Stoxx 600 Index.
European stock markets were mixed in early trade, with benchmarks Stoxx 600 index – which fell 0.66% on Friday – down by another 0.1% at 8:35 am in London.
The UK FTSE 100 and France CAC 40 they decreased by 0.28% and 0.11%, respectively. Germany’s DAX gained 0.55%.
– Jenny Reid
SAP shares pop 5% in the open after the cloud and software guidance raises
Shares listed in Frankfurt from SAP jumped 5% in the open market to an all-time high, after the German software firm raised its full-year outlook in the third quarter results published after the market closed on Friday.
The company reported total revenue up 9% year-on-year to 8.47 billion euros ($9.17 billion), and operating profit up 29% to 2.21 billion euros, higher than expected. Revenue in the cloud business grew 25%, versus 11% for cloud and software.
It also nudged full-year guidance for cloud and software revenue higher, to 29.5 billion euros to 29.8 billion euros, up from 29.5 billion euros before forecast to 29.5 billion euros.
Stock price changes from SAP.
“We are very pleased with the results we announced last night,” SAP CEO Christian Klein told CNBC’s “Squawk Box Europe” Tuesday.
“It’s definitely the cloud, but SAP is more than the cloud. We embed AI, we open the operating system to the world, so for us it’s all about the cloud, plus AI gives customers a faster transformation of their business model, a resilient supply chain,” Klein said.
“It’s all about decarbonisation, especially for many large companies in Europe, and this is what we do, we sell software that runs business processes, and at a time like this, it’s very important for our customers.”
The company has undergone restructuring this year to focus on its AI business. SAP is also listed on the New York Stock Exchange.
– Jenny Reid
Britain’s debt is higher than forecast before the budget
Britain’s net borrowing rose to £16.6 billion ($21.59 billion) in September, the Office for National Statistics said on Tuesday, up £2.1 billion from a year earlier.
It was also higher than the £15.1 billion estimate by the government’s independent advisory group, the Office for Budget Responsibility, and the third highest September borrowing since monthly records began in January 1993.
Chancellor Rachel Reeves delivers a speech at the Treasury on July 8, 2024 in London, England.
Pool | Getty Images News | Getty Images
It comes as the Labor government prepares to submit the first budget on October 30.
Analysts say policymakers are in a tough spot, as they have pledged to reduce debt as a share of GDP over the next five years and balance the budget so that revenues meet spending, while also pledging not to raise a number of key taxes, including income, sales and corporate. . . British Finance Minister Rachel Reeves, who took office in July, also accused the previous administration of leaving a £22 billion funding shortfall for next year.
Reports suggest that he could use the budget to change the way debt is calculated by the Treasury in order to create more room for capital spending.
The latest borrowing figures “highlight the limited scope (the Finance Minister) has to increase spending on a day-to-day basis without raising taxes,” Alex Kerr, UK economist at Capital Economics, said in a note.
“That said, if he tweaks the fiscal rules, he still has room to raise public investment,” said Kerr, predicting Reeves will raise current spending – which does not include investment – by a net £25 billion a year funded by tax increases.
The changes to the lending rules will allow borrowing for public investment by an additional £53 billion, Kerr added.
– Jenny Reid
Maersk beat Q3 profit forecast, raising full-year guidance amid strong shipping demand
The container ship Gunde Maersk docks at the Port of Oakland on June 24, 2024 in Oakland, California.
Justin Sullivan | Getty Images
Shipping giant Maersk raised its full 2024 guidance on Monday citing strong third-quarter performance along with “strong container market demand and the continuation of Red Sea conditions.”
The Danish company posted preliminary, unaudited earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.8 billion, above the analyst consensus of $3.7 billion.
Maersk raised its full-year EBITDA forecast to $11 billion to $11.5 billion, from a previous forecast of $9 billion to $11 billion, and said it now sees free cash flow of at least $3 billion, up from at least $2 billion previously.
The global container market’s volume growth outlook for this year rose to around 6% from 4%-6% previously, it added in a trading update issued after the market closed on Monday.
MAERSK share price changes.
This year’s Red Sea crisis has seen shipping companies divert their trade to the southern coast of Africa, avoiding the Red Sea and the Gulf of Aden after attacks on their ships by Houthi rebels. That has increased travel time, taking capacity out of the global container market.
Citi analyst Sathish Sivakumar said in a note on Friday that Maersk’s full-year consensus upgrade was “mostly driven” by the good third quarter results, and also expected an increase in the fourth quarter consensus along with more detail in the company’s full results. due on October 31st.
Sivakumar, who has a sell rating on the stock, said there are upside risks for Maersk to the target price, including improved consumer confidence, a favorable freight rate environment and ongoing supply chain conditions.
– Jenny Reid
European Market: Here is the opening call
European markets are expected to open in mixed territory on Tuesday.
The UK FTSE 100 index is expected to run 15 points lower at 8,306, Germany DAX up 68 points at 19,522, France’s CAC up 2 points at 7,533 and Italy’s FTSE MIB up 8 points at 34,798, according to data from IG.
Earnings will come from Randstad, Tele2, DnB and InterContinental Hotels Group, and the IMF published its latest World Economic Outlook report.
– Holly Elliott
CNBC Pro: As gold hits another record high, pros open up prospects for the precious metal
Macroeconomic uncertainty, growing geopolitical tensions and the desire to curb inflation have given gold – the classic “safe haven” asset – a blistering rally.
Spot gold prices have risen above $2,700 an ounce, rallying for a fifth day on Monday to reach a record high of more than $2,733 an ounce. years, gold spot it is up over 30%.
And Michael Widmer, head of metal research at Bank of America, said it has more to go.
gold
‘If gold doesn’t rally now, then I’m not sure when it will. Actually, I think the underlying background looks pretty good,” he told CNBC’s “Squawk Box Europe” Monday.
Others like John Reade, senior market strategist at the World Gold Council, urged caution.
CNBC Pro subscribers can find more here.
– Amala Balakrishner
Uncertainty about the November election is ‘no reason to exit the market,’ UBS said
Although the tight US presidential election is still very close, UBS remains constructive on equities and does not think that volatility can derail the strong market.
“With no party having a clear advantage in either country to decide the outcome, the race remains very close, and we expect volatility to continue in the coming weeks amid uncertainty,” UBS Global chief Wealth Management. investment officer Solita Marcelli wrote there. “But we also think potential volatility cannot undermine positive equity fundamentals, and caution investors against making dramatic portfolio changes based on expected election results.”
—Brian Evans
CNBC Pro: Scotiabank says 3 biotech ‘top pick’ stocks have more than 100% upside potential
Scotiabank has highlighted three biotech companies as “top picks,” each with the potential to more than double their share price over the next 12 months.
The bank believes that the interest rate cut is an important tailwind that will lead to more investment interest in the biotech sector.
CNBC Pro subscribers can read more here.
– Ganesh Rao
