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Market Update

Asia Pivot Drives HSBC Profit Higher, Novartis to Buy Nuclear Medicine Maker

Author: Sarla Buch
Last Update: 10:08 AM EDT October 30 2017

4:00 PM Frankfurt – Akzo Nobel approached the U.S.-based Axalta for a possible merger. Glencore lifted full-year profit forecast but cut output estimates. HSBC reported better-than-expected profit from Asian business. Bankia revenues plunged 10%. Novartis agreed to buy Advanced Accelerator for $3.9 billion.

In London trading, FTSE 100 index increased 14.67 or 0.2% to 7,501.17 and in Frankfurt the DAX index advanced 79.74 or 0.6% to 13,212.38.

In Paris, CAC 40 index jumped 36.03 or 0.7% to 5,491.42.

Akzo Nobel NV increased 0.7% to €78.03 after the Netherlands-based paints and coatings confirmed that the company had approached the U.S.-based rival Axalta Coating Systems Ltd for a possible merger and create a $30 billion company.

Glencore Plc slid 0.2% to 367.12 pence after the U.K.-listed metals and minerals miner reduced its current year copper production estimate to 1.31 million tons from 1.33 million tons in the previous year.

However, trader and miner lifted its full-year operating profit forecast to between $2.6 billion and $2.8 billion from the earlier estimate of $2.4 to $2.7 billion.

Bankia SA advanced 2.8% to €4.14 after Spain-based banking services provider stated net interest income in the nine-month period ending in September plunged 10.1% from a year ago to €1.5 billion.

Net profit in the period increased 1% to €739 million from €731 million in a year ago nine-month period and diluted earnings per share rose to €0.34 from €0.28.

The bank added net new customers of 141,000 and non-performing loans declined 11.2% since December 2016 and 3.4% over the quarter and as of September 2017, non-performing loans ratio stands at 8.8%, a decline of 30 basis point from the first-half and 100 basis points from December 2016.

HSBC Holdings Plc slipped 1.5% to 737.10 pence after the U.K.-based banking and financial services provider said revenues in the nine-month ending in September rose 0.4% from a year ago to $39.1 billion.

Net profit in the period surged 73.5% to $9.96 billion from $5.74 billion in a year ago period and diluted earnings per share jumped to 50 cents from 29 cents.

HSBC reported better-than-expected quarterly profit from Asian business and the region driving over 70% of group’s adjusted profit.

“We also continued to make good progress with the strategic actions we set out in 2015. Our international network continued to deliver strong growth in the third quarter, and our pivot to Asia is driving higher returns and lending growth, particularly in Hong Kong,” said Group Chief Executive Stuart Gulliver.

Novartis AG gained 0.5% to 81.45 Swiss francs after Switzerland-based healthcare products maker today agreed to acquire the U.S.-listed and France-focused nuclear medicine theragnostics Advanced Accelerator Applications SA for $41 per share or about $3.9 billion in cash.

Advanced Accelerator Application SA stock surged 10.3% to $80.40.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc