HSBC Q1 profit tops forecasts
HSBC has exceeded market expectations with a 25 percent rise in first-quarter underlying profit. The banking group made US$ 6.8 billion in the first three months of the year, thanks to a rebound in investment income and a fall in US bad debts. The market was expecting a profit of US$ 5.8 billion. The bank's chief executive, Stuart Gulliver said it had made US$ 2 billion in savings thorugh cost-cutting. And it had reduced its headcount by 14,000 as part of a plan to cut 30,000 jobs by the end of next year. On Hong Kong, Mr Gulliver said the number of people the bank employed here remained unchanged at 29,000 at the end of 2011. And he didn't expect any changes by the end of this year. The bank said last year that it would lay off 3,000 local staff.
Large oil field discovered in Kenya
The British-based Tullow oil exploration company has announced that drilling in northern Kenya has discovered a potential field five times larger than previously thought. A spokesman for Tullow told reporters that the find at Ngamia in the Rift valley was very significant.
Slow jobs growth hits Wall St
Wall Street ended its worst week this year with a sharp sell-off after a slowdown in job creation in the world's top economy raised the biggest question mark yet about the prospects for US growth. Employers reduced hiring for the third straight month, adding 115,000 workers in April, well below forecasts of 170,000. The Dow Jones industrial average dropped 168 points on Friday, or 1.3 percent, to 13,038. The Standard & Poor's 500 Index lost 22 points, or 1.6 percent, to 1,369. The Nasdaq Composite fell 68 points, or 2.3 percent, to 2,956.
Japan to be without nuclear power today
Japan will be without nuclear power for the first time in four decades, when its only operating reactor shuts down for routine maintenance today. Before the devastating earthquake and tsunami last year caused a meltdown at the Fukushima nuclear plant, Japan relied on nuclear power for 30 percent of its electricity. But since then more than 50 reactors around the country have gone off-line for maintenance checks and local authorities have refused to allow them to be re-started.
US jobless rate falls to 8.1 percent
The US unemployment rate fell to 8.1 percent in April as the economy created 115,000 jobs, official figures showed on the eve of President Barack Obama's maiden re-election rally. Labour Department data showed a marked slowdown in job creation, although unemployment fell to the lowest level since Mr Obama took office in January 2009. But the report will do little to sweeten sentiment about the health of the economy, which has been beset by pitfalls. Confidence has become a shaky plank of the recovery from the 2008-09 recession, hit by earthquakes, fiscal crises, revolutions and mixed data. Economists zeroed in on some troubling details in the report. The drop in unemployment was in large part due to workers dropping out of the jobs market.
Retail sales higher than expected
Retail sales in Hong Kong have risen faster than expected. Sales in March rose 17.3 percent from a year ago to a total value of HK$ 36.6 billion. Consumer durable goods were the biggest gainer. The government said the strong data reflected buoyant tourist spending and local consumer sentiment. It forecast that the stable labour market and tourism should continue to support the retail trade in the near term.
Gome shares slump to 3-year low
Shares of the second biggest electronics retailer, Gome, have slumped to their lowest level in nearly three years after the company warned of a "significant drop" in first-quarter earnings. The share price plunged 11 percent to close at HK$ 1-24. The stock has lost 31 percent this year, compared with a 16-percent gain for the Hang Seng Index.
Weak UK data fires recession fears
British manufacturing output barely grew at all in April as an economic slowdown in the euro zone curbed demand for goods made in Britain, raising the risk of a longer recession. The unexpectedly sharp slowdown is fuelling a debate over the chances of further monetary stimulus from the Bank of England, after central bankers hinted that they might not extend their asset purchases later this month following a run of stronger economic data. Sterling fell against the dollar and euro after the PMI release. The weak data also intensifies pressure on the governing Conservatives and Liberal Democrats, grappling with a shrinking economy and a series of political blunders as they go into local elections on Thursday, a test of popular support. The manufacturing PMI dropped to 50.5 in April from a downwardly revised 51.9 in March, keeping the sector just above the 50 level which separates growth from contraction.
Growth in EU money supply
The European Central Bank says growth in the eurozone money supply, a key indicator of demand in the economy, picked up again in March. It rose 3.2 percent last month, following a gain of 2.8 percent in February. The jump was unexpected, with analysts polled by Dow Jones Newswires having predicted growth of only 2.8 percent in March.