Lloyds Faces More U.K. Fines, Nestle Crisis Deepens in India

Nigel Thomas
05 Jun, 2015
New York City

U.K. regulatory agency fined Lloyds Banking

[R]4:00 PM Frankfurt – U.K. regulatory agency fined Lloyds Banking £117 million on mishandling customer complaints. Fuller, Smith & Turner revenues climbed 12%. Nestle crisis in India deepened after few states imposed temporary ban on sale of packaged noodle.[/R]

In London trading, FTSE 100 index slipped 0.9% or 62.68 to 6,887.51 and in Frankfurt the DAX index fell 0.2% or 31.51 to 11,389.77.

In Paris, CAC 40 index decreased 0.4% or 22 to 5,012.17.

For the week, FTSE 100 index declined 2.5% and in Frankfurt the DAX index slumped 1.9%.

In Paris, CAC 40 index decreased 1.6%.

Edinburgh Worldwide Investment Trust Plc fell 0.7% to 474.57 pence after the U.K.-based investment company reported net asset value per share in the first-half ending in April climbed 14.7%.

Fuller, Smith & Turner Plc increased 1% to 1,070 pence after the U.K.-based pubs and hotels operator reported revenues in the year ending in March climbed 12% to £321.5 million from £288 million in a year ago period.

Net income in the year dropped 2.4% from a year ago to £28.4 million compared to £29.1 million and diluted earnings per share slipped to 50.42 pence from 51.39 pence.

Lloyds Banking Group Plc slid 0.3% to 87.21 pence and the U.K.-based financial services provider was fined £117 million for selling insurance products that customers didn’t need.

From 2000, the bank sold 16 million policies and the insurance company has settled complaints with about 45% of policy holders.

Nestle SA dropped 1.3% to 70.30 Swiss francs after the Switzerland-based food and beverage maker’s India unit faces regulatory inquiry for its popular noodle brand.

Regulators in few states have banned the sale of Maggi and alleged that the noodles are “unsafe and hazardous for human consumption,” and detected high levels of lead a toxic metal.

Compagnie de Saint Gobain SA gained 0.5% to €42.69 after the France-based glass maker’s chief executive Pierre-Andre de Chalendar said the company has received five offers for glass bottle maker Verallia and the sale is expected to be completed in the third quarter.