Banks

BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Economy

Draghi: Eurozone will decline without vital productivity growth

It’s productivity, stupid. European Central Bank president Mario Draghi has become the latest major policymaker to warn of the long-term economic damage posed by chronically low productivity growth, as he urged eurozone governments to take action to lift growth and stoke innovation. Speaking in Madrid on Wednesday, Mr Draghi noted that productivity rises in the […]

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Currencies

Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

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Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

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Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

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Categorized | Equities

Accor slips after earnings warning


Posted on August 28, 2013

Earnings from two of France’s blue-chip stocks were responsible for the best and one of the worst performances on pan-European stock indices.

Shares in Accor, Europe’s largest hotel group, fell 4.4 per cent to €27.52 after the company warned on full-year profit after reporting weaker than expected first-half results.

    The owner of the Novotel and Ibis chains said operating profit in its first six months fell 6.4 per cent to €198m and forecast full-year profit to come in at between €510m-€530m, just below market estimates of €535m.

    “Even with significant help from the cost savings programme, Accor still expects full-year core earnings to be below last year,” said Geof Collyer at Deutsche Bank.

    At the other end of the FTSE Eurofirst 300 stood Bouygues, the conglomerate, up 10.5 per cent to €25.33 after it maintained its profit outlook following a 10 per cent rise in second-quarter operating profit to €432m, beating expectations.

    Overall, however, market sentiment remained clouded by the sell-off in emerging markets and the Syrian crisis. The Eurofirst 300 fell 0.3 per cent to 1,198.56.

    Among the top gainers, oil groups were prominent as the threat of international involvement in Syria drove up oil prices.

    Spanish oil producer Repsol added 3.2 per cent to €18.11 while Norway’s Statoil gained 4.2 per cent to NKr137.60.

    Oilfield services groups were also strong after forecast-beating results from Oslo-listed Seadrill, which climbed 2.9 per cent to NKr273.50. Italian rival Saipem gained 2.4 per cent to €16.58.

    The sharp rise in oil prices over past couple of sessions hit shares in the region’s airlines. Lufthansa fell 3.2 per cent to €13.49 and Air France-KLM lost 3 per cent to €5.74.

    Ryanair fell 0.1 per cent to €6.51 after the UK Competition Commission ordered the Dublin-based airline to cut its holding in rival Aer Lingus from nearly 30 per cent to no more than 5 per cent.

    Utilities were broadly higher as gains took on a more defensive feel. France’s GDF Suez rose 2.2 per cent to €16.60 after Credit Suisse raised its rating to outperform from neutral.