HSBC lifts bad loan provisions, AB Foods profits fall
By Josh White
Date: Tuesday 29 Apr 2025
(Sharecast News) - London open
The FTSE 100 is expected to open 25 points higher on Tuesday, having closed up 0.03% on Monday at 8,417.34.
Stocks to watch
Asia-focused bank HSBC on Tuesday lifted its bad loan provisions in the first quarter, blaming a bleak macroeconomic outlook from higher tariffs and geopolitical tensions as it also announced a $3bn share buyback. The lender said it now expects credit losses of $876m, an increase of $202m, with $100m set aside to cover Hong Kong's commercial property sector. Pre-tax profits were down by a quarter to $9.5bn in the first three months of the year, better than analyst expectations of $9.1bn.
First-half profits at Associated British Foods fell by a tenth with sales slightly behind last year, as growth in retail and food ingredients was offset by a "frustrating" performance in the sugar division. Adjusted pre-tax profit totalled £818m in the 24 weeks to 1 March, down from £911m the year before, as group revenues fell 2% to £9.51bn. The interim dividend was unchanged at 20.7p per share.
AstraZeneca is discontinuing the CAPItello-280 phase three trial of Truqap, or capivasertib, in combination with docetaxel and androgen-deprivation therapy for metastatic castration-resistant prostate cancer, following an interim analysis that showed the treatment was unlikely to meet its dual primary endpoints. The FTSE 100 drugmaker said the decision was based on the recommendation of the Independent Data Monitoring Committee, while the safety profile of Truqap remained consistent with previous studies. It said it would collaborate with investigators on patient follow-up, and trial data would support future research efforts.
Newspaper round-up
Britain's gas power stations should be nationalised to prevent their owners from holding the electricity market "to ransom", a thinktank has urged. The country's dwindling fossil fuel power plants are ripe for nationalisation as ministers aim to reduce gas consumption to just 5% of the electricity system by 2030, according to a report by Common Wealth. - Guardian
Keir Starmer has been warned that Labour's tough stance on benefits is costing Britain's economy billions of pounds each year while adding to the pressure on public services by pushing more people into poverty. With the government under fire over its planned benefit cuts, the anti-poverty charity Trussell said that failing to tackle hunger and hardship would have severe human costs and cause damage to the wider economy and public finances. - Guardian
A reliance on net zero energy left Spain and Portugal vulnerable to the mass blackouts engulfing the region, experts said on Monday night. In what is believed to be Europe's largest power cut, tens of millions of people were left without electricity, while flights were grounded, trains halted and whole cities were left without power, internet access or other vital services. - Telegraph
One of the world's largest computer companies has said it will spend $150 billion in America over the next five years, making it the latest US technology company to bow to President Trump's push for domestic manufacturing. IBM, nicknamed "Big Blue", is based in New York and traces its roots back to 1911. It said the investment would include $30 billion on research and development of the group's mainframe and quantum computers. - The Times
Sir Jim Ratcliffe has fired a fresh broadside at UK energy policy, claiming that the burden of paying carbon taxes has forced his company to halt projects that would cut its emissions. The outspoken chairman of Ineos said its Grangemouth site in Scotland would have to pay a £15 million bill this week for its carbon dioxide emissions last year. - The Times
US close
US stock markets finished flat on Monday after erasing earlier losses by the close, with investors treading cautiously ahead of a busy week for corporate earnings and economic data.
The Dow and S&P 500 managed to finish in positive territory, albeit marginally, with 0.28% and 0.06% gains respectively, rising for the fifth straight day.
But with markets now trading at or close to pre-Liberation Day levels, risk appetite has evaporated somewhat.
The Nasdaq, meanwhile, fell 0.10% with a number of quarterly results due out from Big Tech names later this week, like Amazon.com, Apple, Meta Platforms
and Microsoft.
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