Volatile European Markets, HSBC Threatens to Leave U.K.

Nigel Thomas
24 Apr, 2015
New York City

European markets turned volatile and euro zone ministers concluded yet another meeting with Greece with no progress on hand. Air Liquide revenues climbed 7%. AstraZeneca profit soared 9%. HSBC plans to relocate headquarter to Hong Kong. Renault sales soared 14%. Reckitt Benckiser sales rose 1%.

[R]4:00 PM Frankfurt – European markets turned volatile and euro zone ministers concluded yet another meeting with Greece with no progress on hand. Air Liquide revenues climbed 7%. AstraZeneca profit soared 9%. HSBC plans to relocate headquarter to Hong Kong. Renault sales soared 14%. Reckitt Benckiser sales rose 1%.[/R]

Market indexes across the Euro zone closed higher as finance ministers meet once again to discuss the loan conditions for Greece.

Ministers concluded the meeting with no reported progress and Dutch Finance Minister Jeroen Dijsselbloem, head of the Eurogroup finance ministers, said Greece is running out of cash.

Economists in Greece and in London are estimating that Greece can survive till the end of July without any new fund infusion from international lenders but the Greek government has begun taking steps in bolstering its cash from local municipal offices.

In London trading, FTSE 100 index added 0.1% or 8.64 to 7,062.31 and in Frankfurt the DAX index gained 0.5% or 35.31 to 11,758.89.

In Paris, CAC 40 index edged up 0.05% or 2.50 to 5,181.41.

For the week, FTSE 100 index increased 1.1% and in Frankfurt the DAX index rose 0.9%.

In Paris, CAC 40 index jumped 1.1%.

Air Liquide SA slipped 1.8% to €118.90 after the France-based industrial gas provider said revenues in the first-quarter ending in March climbed 7% to €3.99 billion from €3.73 billion in a year ago period.

Gas and services segment revenues in the quarter jumped 6.3% to €3.63 billion while industrial merchant''s revenues edged up 0.3%. Healthcare revenues soared 6.8% and revenues from electronics business surged 14.4%. Engineering and technology revenue climbed 16.4%.

AstraZeneca Plc dropped 2.3% to 4,719 pence after the U.K.-based biopharmaceutical company reported total revenues in the first-quarter ending in March declined 6% to $6.06 billion from $6.46 billion in a year ago period.

Net profit in the quarter soared 9.1% from a year ago to $550 million compared to $504 million and diluted earnings per share increased to 44 cents from 40 cents.

HSBC Holdings Plc climbed 3% to 630.90 pence after the U.K.-based plans to shift its headquarters out of the U.K. because of “tough regulations” and “uncertainty over the country''s future in Europe” and may relocate to its previous headquarter Hong Kong from where the bank shifted in 1993.

""""The recent past has been very difficult for HSBC"""" chairman Dougles Flint blamed.

At the bank''s annual general meeting in London Flint criticized """"the regulatory and structural reforms which have been put in place post crisis"""" and added """"the question is a complex one and it is too soon to say how long this will take or what the conclusion will be.""""

Renault SA climbed 3.4% to €96.82 after the France-based automaker reported group revenues in the first-quarter ending in March soared 13.7% to €9.39 billion from €8.26 billion in a year ago period.

Renault group said registrations in the quarter increased 0.8% to 641,588 vehicles in Europe and revised its 2015 guidance for the European automotive market to grow 5%.

Reckitt Benckiser Group Plc fell 0.7% to 5,957 pence after the U.K.-based hygiene and home products maker stated total revenues in the first-quarter ending in March rose 1% to £2.22 billion from a year ago period.

The company said revenues from health division soared 11% to £709 million and revenues from hygiene segment increased 1% to £943 million while revenues from home products business declined 7% to £414 million.

Tyco International Plc, the Ireland-based security products and services provider said net revenues in the second-quarter ending in March slipped 2% to $2.43 billion from $2.48 billion in a year ago period.

Net income in the quarter declined 19.3% from a year ago to $167 million compared to $207 million and diluted earnings per share decreased to 39 cents from 44 cents.