Europe Earnings: Barclays, Lufthansa, Hennes & Mauritz, Vedanta

Nigel Thomas
16 Sep, 2013
New York City

Barclays said adjusted income fell by

[R]4:00 PM Frankfurt – Barclays said adjusted income fell by £500 million and the bank plans to sell 3.22 billion new shares to raise £5.8 billion. Deutsche Lufthansa split its order for jets. Hennes & Mauritz said comparable stores sales jumped 4%. Volkswagen plans to increase stake in China-based joint venture.[/R]

In London trading, FTSE 100 index gained 0.6% or 41.17 to 6,625 and in Frankfurt the DAX index climbed 1.1% or 93.79 to 8,603.

In Paris, CAC 40 index rose 0.7% or 28.79 to 4,143.

Barclays Plc gained 1.4% to 305.80 pence after the UK based investment bank said adjusted income for July and August dropped by £500 million compared to the same period a year earlier.

Separately, today the bank filed a rights issue prospectus and proposed to sell 3,219,067,868 new shares at 185 pence a share to raise nearly £5.8 billion to plug £13 billion capital shortfall to meet U.K.’s new loss-buffer rules.

The lender added its cost-cutting plan was on track and expects operating costs of nearly £18.5 billion in this year.

Deutsche Lufthansa AG rose 0.4% to €13.99 after the Germany-based aviation company plans to split the order for jets between EADS NV's unit Airbus SAS and Boeing Co.

H & M Hennes & Mauritz AB climbed 4.1% to 259.30 kronor after the Sweden-based fashion retailer said sales in the third quarter in comparable stores jumped 4% and sales including value-added-tax climbed to 37.41 billion kronor compared to 33.57 billion kronor a year ago.

Volkswagen AG gained 0.3% to €176.65 after the Germany-based automobile company is likely to increase the stake in its Chinese joint venture from 40% to 50%.

Vedanta Resources Plc increased 1.8% to 1,181 after the UK based but India-focused miner appointed former chief executive officer Tom Albanese of Rio Tinto Plc as chairman of its main operating subsidiary, Vedanta Resources Holdings Ltd.