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Market Update

GE Completes Alstom Unit Deal; HSBC Net Surges, Commerzbank Net Drops

Author: Nigel Thomas
Last Update: 12:10 PM ET November 02 2015

4:00 PM Frankfurt GE completed acquisition of power and grid businesses from Alstom for 9.7 billion. Commerzbank profit plunged 8%. HSBC net surged 53%. Hikma lowered revenues estimate. Ryanair revenues and profit surged and raised traffic target for fiscal 2016. Shire agreed to buy Dyax for $5.9 billion.

In London trading, FTSE 100 index edged up 1.48 to 6,362.83 and in Frankfurt the DAX index increased 105.14 or 0.9% to 10,954.94.

In Paris, CAC 40 index rose 29.72 or 0.6% to 4,927.23.

Alstom SA edged up 0.05% to 29.67 after the U.S.-based industrial conglomerate General Electric Company completed the power and grid business for 9.7 billion from the France-based rail transport systems operator.

The company already received approval from more than 20 regions and countries including the E.U., the U.S., China, Japan, and India.

Commerzbank AG soared 7.7% to 10.78 after the Germany-based bank said revenues in the third-quarter period ending in September plunged 6.3% from a year ago to 1.50 billion.

Net profit in the quarter plunged 8% from a year ago to 207 billion compared to 1.40 billion and diluted earnings per share increased to 2.42 from 1.79.

The lender said loan loss provisions in the period dropped to 146 million from 341 million but operating profit jumped to 429 million from 343 million a year ago period.

HSBC Holdings Plc fell 0.9% to 502.67 pence after the U.K.-based banking and financial services provider reported revenues in the third-quarter ending in September declined 4% from a year ago to $15.08 billion.

Net profit in the quarter surged 52.5% from a year ago to $5.23 billion compared to $3.43 billion and diluted earnings per share increased to 25 cents from 17 cents.

The bank said it has lowered by 30% of the targeted risk weighted assets reduction of $290 billion by the end of fiscal 2017, with a total of $82billion since the start of current year.

HSBC added loan impairment charges and other credit risk provisions in the quarter fell to $638 million from $760 million in the same period a year ago.

Hikma Pharmaceuticals Plc declined 4.9% to 2,059 pence after the U.K.-based pharmaceutical company lowered its revenues forecast for the generics business to about $150 million from the earlier estimated range of $175 million to $200 million.

Ryanair Holdings Plc jumped 3.2% to 13.92 after the Ireland-based low fare airline company said revenues in the first-half period ending in September soared 14% from a year ago to 4.04 billion.

Net profit in the quarter surged 77.4% from a year ago to 1.41 billion compared to 795 million and diluted earnings per share advanced to 102.66 cents from 57.29 cents.

Ryanair raised traffic target for fiscal 2016 from 104 million to 105 million customers on the higher load factors in the second-half and said unit costs are expected to fall by 5%. The airline estimated net profit between 1.18 billion to 1.23 billion.

Shire Plc slipped 1.4% to 4,858 pence after the U.K.-based biopharmaceutical company agreed to acquire the U.S.-based smaller rare-diseases medicine maker rival Dyax Corporation for $37.30 in cash or about $5.9 billion, representing a 35.5% premium to closing price ofFriday.

Dyax Corporation stock on the Nasdaq trading in New York surged 31.3% or $36.15.

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