HSBC appoints first female chief financial officer and announces restructuring
LONDON – NOVEMBER 5, 2020: Heavy fog covers the Canary Wharf business district, including global financial institutions Citigroup, State Street, Barclays, HSBC Holdings plc and the 1 Canada Place commercial office tower.
Dan Kitwood | Getty Images News | Getty Images
HSBC announced a major restructuring on Tuesday and appointed Pam Kaur, currently group chief risk and compliance officer, as the bank’s first female finance chief.
Kaur will serve as treasurer on Jan. 1, succeeding interim Treasurer Jon Bingham.
At the same time, the bank announced plans to streamline its operations to “reduce duplication of processes and decisions.” Starting in January, it will operate through four divisions: Hong Kong, UK, International Wealth and Premium Banking and Corporate and Institutional Banking.
Read the full story here.
HSBC share price.
Saab shares rise 7% after earnings beat expectations
Swedish defense company Saab tops list Stoke 600 It rose in early trading, with profits beating analysts’ expectations and rising 6.8%.
The former automotive company now produces military products and services including Gripen fighter jets, report Operating income increased 38% year-on-year to SEK 1.187 billion (USD 112.8 million), compared with expectations of SEK 1.14 billion.
Saab saw order bookings rise 41% this quarter and reiterated its full-year outlook.
A Philippine military officer (left) inspects a model of the Swedish SAAB Gripen multi-role fighter aircraft at the Asian Defense and Security Exhibition (ADAS) in Manila on September 25, 2024.
Ted Alguib | AFP | Getty Images
“We continue to see increasing demand as European countries need to replenish their defense inventories, which requires a long-term effort,” CEO Micael Johansson said in a statement. “We are evolving to meet continued growth demand, such as by investing in production capacity, automating production and building new factories.”
Analysts have previously tagged Sweden’s admission to NATO earlier this year will provide a tailwind for the company.
Saab share price.
European stocks mixed in early trade
Stoxx 600 Index.
European stocks were mixed in early trade, with benchmark indexes Stoke 600 The index fell 0.66% on Monday and was down another 0.1% at 8:35 am in London.
British FTSE 100 and french CAC 40 Decreased 0.28% and 0.11% respectively. Germany’s DAX index rose 0.55%.
—Jenny Reed
SAP shares opened up 5% after raising cloud computing and software revenue guidance
Frankfurt listed stocks sap The German software company opened 5% higher at a record high after the company raised its full-year outlook. Third quarter results Released after market close on Monday.
The company reported a 9% year-over-year increase in total revenue to 8.47 billion euros ($9.17 billion), and operating profit rose 29% to 2.21 billion euros, above expectations. Its cloud business revenue grew by 25%, while cloud and software business revenue both grew by 11%.
It also raised its full-year cloud and software revenue guidance to 29.5 billion euros to 29.8 billion euros, up from its previous forecast of 29 billion euros to 29.5 billion euros.
SAP share price.
“We are very pleased with the results we announced last night,” SAP CEO Christian Klein told CNBC’s “Squawk Box Europe” on Tuesday.
“It’s definitely the cloud, but SAP is not just the cloud. We’re embedding artificial intelligence, we’re running the world’s operating systems, so for us it’s all about the cloud, and adding artificial intelligence provides customers with faster business Model transformation, resilient supply chains,” Klein said.
“It’s all about decarbonisation, especially for a lot of the big companies in Europe, and that’s what we’re doing, we’re selling software that runs business processes, which is very important to our customers in times like this. “
The company has been restructuring this year to focus on commercial artificial intelligence. SAP is also listed on the New York Stock Exchange.
—Jenny Reed
UK borrowing higher than expected ahead of budget
UK net borrowing rises to £16.6 billion ($21.59 billion) in September The National Bureau of Statistics said on Tuesdayan increase of £2.1 billion over the previous year.
It was also higher than the £15.1 billion forecast by the Office for Budget Responsibility, the government’s independent advisory group, and the third highest September borrowing since monthly records began in January 1993.
UK Chancellor of the Exchequer Rachel Reeves delivers a speech at the Treasury on July 8, 2024 in London, UK.
Pool | Getty Images News | Getty Images
The Labor government is preparing to deliver its first budget on October 30.
Analysts say policymakers are in a tough spot; promise Reduce debt as a share of GDP over the next five years, balance the budget so that revenues meet costs, and commit to not increasing several major taxes, including income, sales and corporate taxes. Meanwhile, UK Finance Minister Rachel Reeves, who took office in July, blamed the previous government for leaving a 22 billion pound financing gap for the coming year.
Report recommendations She may use the budget to change the way the Treasury calculates debt to create more room for capital spending.
Alex Kerr, U.K. economist at Capital Economics, said in a note that the latest borrowing data “underscores (the finance minister’s) desire to increase day-to-day spending without raising taxes.” limited scope”.
“That said, if she adjusts the fiscal rules, she still has room to boost public investment,” Kerr said. She predicted Reeves would increase current spending (excluding investment) by a net £25 billion a year through tax increases.
Kerr added that changes to debt rules would allow an additional £53 billion to be borrowed for public investment.
—Jenny Reed
Maersk beats third-quarter profit forecast, raises full-year guidance amid strong shipping demand
On June 24, 2024, the container ship Gunde Maersk docked at the Port of Oakland in Oakland, California.
Justin Sullivan | Getty Images
Shipping giant Maersk raised its full-year 2024 guidance on Monday, citing a strong third quarter and “strong container market demand and the ongoing situation in the Red Sea.”
danish company Preliminary release without review Earnings before interest, taxes, depreciation and amortization (EBITDA) were US$4.8 billion, higher than analysts’ average estimate of US$3.7 billion.
Maersk raised its full-year EBITDA forecast to $11 billion to $11.5 billion from the previous forecast of $9 billion to $11 billion, and said it now expects free cash flow to be at least $3 billion, up from at least $2 billion previously.
The company added in a trading update released after the close on Monday that the outlook for global container market volume growth this year has risen to around 6% from the previous 4%-6%.
Maersk share price.
This year’s Red Sea crisis has led shipping companies to divert trade around Africa’s southern coast, avoiding the Red Sea and the Gulf of Aden after Houthi rebels attacked their ships. This increases journey times and reduces capacity in the global container market.
Citi analyst Sathish Sivakumar said in a note on Monday that Maersk’s full-year consensus upgrade is “largely driven by improved third-quarter results,” and he also expects an increase in fourth-quarter consensus and more details on the company’s overall results. Deadline is October 31st.
Sivakumar, who has a sell rating on the stock, said there are upside risks to Maersk’s price target, including improving consumer confidence, a favorable freight rate environment and continued tight supply chain conditions.
—Jenny Reed
European Markets: Here are the opening calls
European markets are expected to open mixed on Tuesday.
British FTSE 100 German stocks are expected to open 15 points lower at 8,306 German DAX Index France rises 68 points to 19,522 CAC Up 2 points to 7,533 points, Italy FTSE MIB It rose 8 points to 34,798, according to IG data.
Randstad, Tele2, DnB and InterContinental Hotels Group will report earnings, and the International Monetary Fund will publish its latest World Economic Outlook report.
— Holly Elliot
CNBC Pro: As gold hits new highs, pros reveal their outlook for the precious metal
Macroeconomic uncertainty, rising geopolitical tensions and the desire to hedge against inflation have led to strong gains in gold, a classic “safe-haven” asset.
Spot gold prices have soared above $2,700 an ounce, rising for a fifth day on Monday to reach a new all-time high of over $2,733 an ounce. So far this year, spot gold An increase of more than 30%.
Michael Widmer, head of metals research at Bank of America, said there is further work to be done.
gold
“If gold doesn’t rebound now, then I’m not sure when it will. In fact, I think the fundamentals actually look pretty good,” he said Monday on CNBC’s “Squawk Box Europe.”
Others, such as John Reade, senior market strategist at the World Gold Council, urged caution.
CNBC Pro subscribers can discover more here.
— Amala Balakrishna
UBS says uncertainty over November election ‘is no reason to exit the market’
Despite the tense U.S. presidential election, which remains close to a winner, UBS remains constructive on equities and believes any rise in volatility will not damage strong markets.
“With neither party having a clear advantage in any of the key swing states that could determine the outcome, the race remains close and we expect volatility to increase in the coming weeks as uncertainty grows,” said UBS Global Wealth Management head. ” investment officer Solita Marcelli wrote on Monday. “But we also believe potential volatility is unlikely to undermine positive stock market fundamentals and caution investors against making major portfolio changes in anticipation of the election outcome.”
— Brian Evans
CNBC Pro: Scotiabank says its 3 top biotech stocks have over 100% upside potential
Scotiabank ranks three biotech companies as “top picks,” with each company’s share price likely to more than double over the next 12 months.
The bank sees interest rate cuts as a significant driver that could reignite broader investment interest in the biotech industry.
CNBC Pro subscribers can read more here.
— Ganesh Rao
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