HSBC profit misses expectations and bank warns of challenging outlook

HSBC Holdings PLC said third-quarter net profit fell 24% from a year earlier because of “challenging market conditions.”

The U.K. banking giant 5, -2.76%HSBC, +0.15%HSBA, +0.00% on Monday reported net profit of $2.97 billion. A Factset poll of analysts had tipped a net profit of $3.96 billion for the quarter.

Third-quarter revenue was down 3.2% on year at $13.36 billion, it said.

Adjusted profit before tax fell 12% on year to $5.35 billion, excluding foreign-exchange differences and significant items.

While its Asian business “held up well in a challenging environment,” performance in Europe was “not acceptable,” said Noel Quinn, HSBC’s Group Chief Executive.

Third-quarter net interest income declined 1.4% on year to $7.57 billion, the bank said, while operating profit was down 19% on year at $4.33 billion.

The bank said the revenue environment is more challenging than in the first half of this year and that part of its portfolio weren’t delivering acceptable returns.

HSBC said that it expects significant charges in the fourth quarter and “subsequent periods” including possible impairment of goodwill and additional restructuring charges.

“We will act to rebalance our capital away from low-return businesses and adjust the cost base in line with the actions we take,” HSBC said.

Profit tumbles 72% at Korean shipbuilder Hyundai Heavy Industries

Hyundai Heavy Industries Holdings Co.’s third-quarter net profit plunged 72% on year amid weak demand for ships and oil rigs.

Net profit for the quarter ended Sept. 30 was 66.10 billion Korean won ($56.4 million), compared with KRW239.50 billion in the same quarter a year earlier, the South Korean conglomerate 267250, +0.14% said Monday. It missed consensus forecast for a net profit of KRW98.25 billion, according to FactSet.

Its revenue during the quarter fell 1.1% on year to KRW6.530 trillion while operating profit dropped 38% on year to KRW219.60 billion, the company said.

The U.S.-China trade spat and growing business uncertainties led to fewer shipbuilding orders and hit its offshore-plant segment especially hard, the company said.

Covestro Q3 Profit Plunges, Core Volume Up; Confirms, Narrows FY19 Outlook Range

Polymer company Covestro (CVVTF.PK,COVTY.PK) reported Monday that its third-quarter net income fell 70.4 percent to 147 million euros from last year’s 496 million euros.

Earnings per share dropped 69.1 percent to 0.80 euro from 2.59 euros last year.

At 425 million euros, EBITDA was down 50.5 percent from the prior-year quarter’s 859 million euros as a result of negative price effects.

Group sales declined as expected by 14.6 percent to 3.16 billion euros from 3.70 billion euros last year, due to continued lower selling prices.

In the third quarter, Covestro achieved core volume growth of 5.3 percent in a continuing challenging economic environment.

Looking ahead for fiscal 2019, the company confirmed and narrowed outlook ranges. EBITDA is forecast to be between 1.57 billion euros and 1.65 billion euros. Previously, EBITDA for the fiscal year was expected between 1.5 billion euros and 2.0 billion euros.

Covestro anticipates core volume growth in the low-single-digit percentage range for 2019, while previous view was low- to mid-single-digit percentage range.

CFO Thomas Toepfer said, “We remain confident we will reach the targets we have set for the fiscal year. Margins were unusually high in the prior-year quarter, which is why the year-on-year decline in sales and earnings is in line with our expectations.”

Second Turkish soldier dead after YPG militia attack: ministry

ISTANBUL (Reuters) – A Turkish soldier died in hospital after an attack by the Kurdish YPG militia in Syria’s Ras Al Ain region, Turkey’s Defense Ministry said on Monday, bringing the death toll from the attack to two.

The ministry had said on Sunday that a rocket and mortar attack by the YPG had killed one soldier and wounded five others, who were transferred to a hospital.

China says it is in contact with Vietnam about Britain truck victims

BEIJING (Reuters) – China’s foreign ministry said on Monday its embassy in Vietnam was in touch with the Vietnamese government about case of 39 people found dead in a truck container in Britain.

Foreign ministry spokesman Geng Shuang made the remarks during a daily briefing in Beijing. He did not elaborate further on the nature of the discussions between the Chinese embassy and the Vietnamese government.

Vietnam’s government said earlier on Monday London had sent it documents to check the identities of four of the 39 victims.

French President Macron expected to agree three-month Brexit extension: Bloomberg

A French government official said President Emmanuel Macron will back a three-month extension to the U.K.’s Brexit deadline, according a Bloomberg News report on Monday. Macron has reportedly been a holdout when it comes to all EU members agreeing on pushing the Brexit deadline beyond October 31, a topic that will be discussed in Brussels on Monday. Without an extension, the agreement reached between British Prime Minister Boris Johnson and the EU will not be implemented, and the U.K. will leave the union in a so-called hard exit. Johnson has called for an early election, Dec. 12, in a bid to get his Brexit bill pushed through Parliament. A vote on that early election is expected on Monday, said the BBC.

LVMH confirms talks with Tiffany over a potential takeover

LVMH Moet Hennessy Louis Vuitton SE said Monday that it is in talks over a potential transaction with U.S. jeweler Tiffany & Co.

The French luxury-goods company said that it was responding to market rumors, and that there was no assurance the discussions would result in an agreement.

On Sunday, The Wall Street Journal reported that LVMH MC, +0.27% has proposed a $120 a share takeover offer for Tiffany TIF, +0.90%  , valuing the U.S. company at close to $14.5 billion. Shares of New York-based Tiffany closed Friday at $98.55.