Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
HSBC
This morning’s Q3 trading update from HSBC LON:HSBA comes with a side of caution after the bank noted that business activity in Europe, the US and the non ring-fenced UK operation had fallen short of expectations. The company is therefore moving faster to remodel these parts of the business to deliver higher yielding opportunities. Reported pre-tax profits for the period are down 18% compared to a year earlier, with HSBC joining other UK banks in observing a spike in PPI claims as the redress campaign closed. The bank no longer expects to achieve its previously targeted RoTE, with the Hong Kong listed stock having already fallen significantly.
Photo-Me International
Monday typically means corporate reports are thin on the ground but we have a note from Photo-Me [LON:PHTM], the operator of phot kiosks, along with a growing laundry business and now a foods division. The company acquired Sepma and now intends to become the global leader in the distribution of self serve fresh fruit juice machines. Acknowledging that there’s limited competition here, the business already believes it has the necessary infrastructure of service for this new division. Interims results for the half year to October 31st will be published mid-December.
Chapel Down
Chapel Down [NEX:CDGP] has released its harvest update to the market this morning, noting that despite challenging weather conditions, the company recorded its second highest volume of crop, yielding 92% of last year’s record harvest. Detail beyond that is scant, but without the grapes there’s nothing to make wine from so presumably many a shareholder will be ready to raise a glass to this.
