HSBC (LON:HSBA) announced a 31% rise in profit for its first quarter on Friday, driven by its operations in Asia. HSBC, the leading banking and financial services organisation globally, reported a profit after tax that amounted to $4.9 billion, up 31%. Additionally, reported revenue was up 5%, whilst adjusted operating expenses were up 3.2%. HSBC’s reported operating expenses were down 12%, assisted by one-off sales in retail and commercial. “These are an encouraging set of results, particularly in the context of heightened economic uncertainty globally. We remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy,” Group Chief Executive John Flint commented on the results. HSBC said it had experienced particularly strong growth in Asia in spite of a softer rate and growth environment. Reported profit before tax for its Asia operations increased by 5% to $5 billion, with the region comprising 81% of HSBC’s overall profits. It said it was progressing on its US turnaround, though this still remains HSBC’s most challenging strategic priority. At the start of the year, HSBC revealed its financial results for 2018 in which it posted a fall in profits as a result of the economic downturn in China. Elsewhere in banking, Deutsche Bank and Commerzbank recently abandoned talks of a merger, following shareholder concerns over the complexities of the decision. Lloyds Bank’s (LON:LLOY) first quarter profits missed expectations, as pre-tax profits for the quarter remained unchanged from the same period a year prior. The Bank of England announced only yesterday that it will be keeping interest rates on hold at 0.75%, following the stronger than expected performance of the UK economy. It said that it now expects growth of 1.5% this year, an increase compared to the 1.2% forecast in February. Shares in HSBC Holdings plc (LON:HSBA) were up 2.25% as of 08:03 BST Friday.

Adidas (ETR:ADS) posted its first quarter results on Friday and confirmed its full-year outlook. The multinational sportswear manufacturer said that its currency-neutral revenues grew 4% in its first quarter and 6% in euro terms to €5.883 billion. The company has said that this was driven by a 5% growth at brand Adidas. According to Reuters, analysts were predicting a €5.8 billion figure, which the actual amount tops. E-commerce was particularly strong, with sales growing by 40%. “We had a successful start to the year, delivering double-digit sales increases in our strategic growth areas Greater China and e-commerce as well as another strong profitability improvement,” CEO Kasper Rorsted commented on the results. “We confirm our full-year outlook and remain confident about the top-line acceleration in the second half of the year. 2019 will be an important milestone toward achieving our 2020 targets,” the CEO continued. Net income from continuing operations amounted to €631 million, a 16% rise compared to the €542 million reported the prior year. Adidas said that is continues to expect sales in increase during 2019 at a rate of 5-8% on a currency neutral basis. It reiterated its announcement in March regarding the strong demand growth for its mid-priced apparel, which it is unable to satisfy in full as a result of supply chain shortages. As a result, Adidas expects a sales growth of 3-4% for the first half of the year, and will rely on the second half of 2019 to accelerate its sales. Founded and headquartered in Herzogenaurach, Germany, Adidas is a leading sportswear brand. Elsewhere in the UK retail market, sportswear retailer JD Sports (LON:JD) also delivered a set of promising results, beating the current high street gloom. Its increase in annual profits confirm its confidence amid growing Brexit uncertainty. JD recently saved its smaller competitor Footasylum (LON:FOOT) in a £90 million deal as the smaller branded trainers and tops store struggled.

The Bank of England opted to keep interest rates on hold at 0.75% on Thursday, citing the stronger than expected performance of the UK economy. The UK’s central bank said that it now expects growth of 1.5% this year, up from the 1.2% forecast in February. With respect to inflation, the Bank of England said that it expects inflation to fall to 1.6% towards the end of the year, before rising again back to 2% the follow year. The bank also forecast the unemployment rate to fall to 3.5% by 2022.

We have kept interest rates at 0.75%. Find out why in our visual summary: https://t.co/NErJey2wDI #InflationReport pic.twitter.com/e66OrM3Owm

— Bank of England (@bankofengland) May 2, 2019

https://platform.twitter.com/widgets.js Earlier this month it was announced the Bank of England had commenced the search to replace current governor Mark Carney. The government has publicly advertised the portion, with a salary of £480,000. The new governor will be tasked with taking over form Carney in January 2020. They will be tasked with steering the bank during a time of economic uncertainty, particularly amid ongoing Brexit negotiations. The chancellor, Phillip Hammond said in comments to the Commons Treasury select committee: “It is very important to have someone, not only who can do a first-class job at home, but someone who commands respect in the international arena,”

Paddy Power Betfair (LON:PPB) published a trading update on Thursday, causing shares to fall. The betting firm said that quarter 1 revenue increased 17% year-on-year. This was attributed to driven ‘excellent growth’ in both Australian and US markets. In the group’s sports division, revenue growth was strong at Sportsbet and FanDuel. However, online performance was particularly impacted by unfavourable results in the UK and Ireland, falling 1%. Gaming also proved strong, with ‘excellent growth’ online across Europe and the US. Paddy Power Betfair also benefited from the acquisition of Adjarabet back in February. Looking ahead, the firm said its full-year outlook remains in line with expectations, particularly amid good returns on US investment. Peter Jackson, Chief Executive, commented on the update: “Q1 was a good quarter for the Group with revenues up 17%, notwithstanding customer friendly sports results in the UK. Underlying momentum remains good for Paddy Power with 22% growth in average daily actives. For Betfair, we continue to make good progress on the technology development work to enhance our global customer propositions which will enable us to accelerate international growth. Meanwhile, the geographical diversification of our online business has been further enhanced by the addition of Adjarabet in February, with integration progressing well.” The firm was founded after a merger between Paddy Power and Betfair back in 2015. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. Shares in Paddy Power Betfair (LON:PPB) are currently down -5.29% as of 12:58PM (GMT).

Lloyds Bank reported its results for the first three months of the year, missing expectations. Pre-tax profits for the quarter were flat, at £1.6 billion, unchanged from the same period a year ago. This was due to one-off costs and continued Brexit related uncertainty. The bank set aside £339 million for “banking volatility and other items”, relating to cost as a result of exiting an agreement with Standard Life. The bank also earmarked an additional £100 million for payments relating to mis-sold PPI compensation. A further £126 million in costs were racked up for restructuring measures during the period. Nevertheless, the bank said overall operating costs fell by 3% to £1.9 billion, which ultimately contributed to a 8% increase in underlying profit to £2.2 billion. António Horta-Osório, group chief executive, said: “While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders.” Shares in Lloyds (LON:LLOY) are currently down -1.07% as of 12:39PM (GMT) as the market reacts to the results.

Coca-Cola HBC reported its first quarter results on Thursday, posting a 4.7% rise in revenue. The bottler of the Coca-Cola brand said that volumes increased by 3.5% over the period compared to the same period a year before, despite the impact of a later Easter. In addition, established segment volumes rose by 0.2%, amid growth in Ireland and Greece, alongside a ‘notable improvement’ in Italy. Meanwhile, developing segment volumes increased by 2.6% during the quarter. Emerging segment volumes also grew by 5.7% particularly in Nigeria. Performance was also boosted by strong growth from Russia, Romania and Ukraine. Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented: “We have started the year well, delivering solid growth in revenues despite the impact of this year’s late Easter. Volume growth accelerated compared to last year and our ongoing revenue growth management initiatives continue to deliver improvements in price/mix. This good start sets us up well to deliver on our plans and make 2019 another year in which we achieve FX-neutral revenue growth above our targeted range with another step up in margins.” He is also announced that the board had agreed to propose a special dividend of €2.00 per share. Mr Bogdanovic said that this reflected “successive years of strong performance, confidence in the future and our commitment to creating value for our shareholders.” Shares in Coca-Cola HBC (LON:CCH) are currently up +3.12% as of 10:39AM (GMT).

Reckitt Benckiser (LON:RB) posted a 1% rise in its first-quarter sales on Thursday but expects to see “improving growth” during the remainder of the year. Head quartered in Slough, England, Reckitt Benckiser is a multinational consumer goods company boasting iconic brands such as Dettol, Strepsils, Gaviscon, Air Wick and Vanish. Like-for-like sales rose 1%, falling below the 1.8% figure expected by analysts. Shares in the company were almost 2% lower during early trading on Thursday. “As expected, Q1 saw a slow start to the year, especially in OTC (Over The Counter). We expect to see improving growth in the remainder of the year, particularly H2,” Chief Executive Officer Rakesh Kapoor commented on the results. “Our health business unit (BU) was impacted by the unusually weak cold and flu season across US and several European markets and associated retailer inventory movements. While our seasonal products declined, Nurofen and Gaviscon delivered good growth from a combination of recent innovations and quality base products. Our IFCN business delivered a good Q1 (+5%), with innovation led momentum continuing in the US and further progress in China,” the Chief Executive Officer continued. Reckitt Benckiser said that it remains on track to deliver its full year net revenue target of +3-4% like-for-like, with its growth to be weighted by the second half of its financial year. “RB2.0 remains fully on track and we reiterate our 2019 targets of 3-4% LFL net revenue growth and adjusted operating margin to be maintained,” Rakesh Kapoor concluded. At the start of the year, however, the company posted a 65% drop in its annual profits, but insisted that this was impacted by one-off gains from the previous year. Its sales also suffered at the end of 2018 as a result of a manufacturing disruption at a European baby formula factory, appearing to be prone to multiple one-off incidents in the past. At 08:28 BST Thursday, shares in Reckitt Benckiser Group plc (LON:RB) were trading at -1.91%.

Anglo-Dutch oil and gas company Shell (AMS:RDSA) posted a 2% decrease in its profits for the first quarter. Profits for the first quarter amounted to $5.3 billion, only a 2% drop from the same period a year prior. According to a company-provided study, Shell was expected to make only $4.5 billion over the quarter. This was easily topped by the profit figure, even though it is 2% below that of last year’s. Shares in the company were trading just over 1% higher during early trading on Thursday. Additionally, in the first quarter of 2019, the company posted a cash flow from operations, excluding working capital movements, of $12.1 billion. “Shell has made a strong start to 2019, with the first quarter financial performance demonstrating the strength of our strategy and the quality of our portfolio of assets. The power of our brand, serving millions of customers every day, continues to be a differentiator,” Chief Executive Officer of Shell, Ben van Beurden, commented on the results. “Our integrated value chain enabled our Downstream business to deliver robust results despite challenging market conditions. The consistent financial performance across all our businesses provides confidence in meeting our 2020 outlook,” the Chief Executive Officer continued. Shell said that it remains confident in its 2020 outlook and its ability to generate resilient profitable growth into the decade. At the end of last year, Shell revealed its highest third-quarter profits in four years. It saw its profits surge by 37% as oil and gas prices increased. Elsewhere in the oil and gas industry, BP (LON:BP) posted its first-quarter results at the start of the week in which it revealed a decrease in its profits compared to the same period a year prior. Underlying replacement cost profit for the first quarter of the year amounted to $2.4 billion, down from the $2.6 billion figure a year prior, and a reflection of the weaker price margin environment at the start of the quarter. At 09:04 CEST Thursday, shares in Royal Dutch Shell plc (AMS:RDSA) were trading at +0.58%. Shares in BP plc (LON:BP) were down 0.31% as of 08:05 BST Thursday

Next (LON:NXT) announced on Wednesday that the unusually warm weather over the Easter holiday period boosted its full price sales. In a trading statement, the multinational fashion, footwear and home products retailer said that total full price sales increased by 4.5% in the thirteen weeks to 27 April. This figure is 1.3% above the company’s internal forecast of 3.2% for its first-quarter. The over performance in the first-quarter amounted to £10 million worth of sales, a figure that is relatively small in the context of its annual sales. As a result, the company said that it is too early to revise its full year sales and profit guidance, and these figures therefore remain unchanged. Next, which is headquartered in Enderby, Leicestershire, said that its full price retail sales fell 3.6% whilst online sales increased by 11.8%. Earlier this year, Next posted a 0.4% decrease in its annual profits for the year ending in January. It also revealed that 53% of its sales were now online. The company reported strong sales for the pre-Christmas period, however, with full price sales for the festive shopping season in line with guidance announced in September. Retailers across the country are battling with gloomy trading conditions, with companies such as Debenhams among some of the most well-known names struggling lately. Online retailers are also struggling, with retailers such as ASOS posting an 87% year-on-year first-half profit before tax crash as a result of its weak performance over the festive period, indicated by its unexpected profit warning a few months prior. According to PwC, almost 2,500 high street stores were closed in 2018, a historic high and consolidation of fears of a high street crisis. As for fashion retailers, 269 stores reportedly closed. Next has roughly 500 stores across the UK and 200 stores across Europe, Asia and the Middle East. At 08:43 BST, shares in Next plc (LON:NXT) were trading at -0.62%.

Sainsbury’s (LON:SBRY) announced on Wednesday that it will be accelerating investment in its in store estate and technology as it attempts to reduce its net debt. The supermarket said that it will invest to improve over 400 supermarkets this year, in addition to reducing its net debt by at least £600 million over the course of the next three years. The supermarket announced the move in its full-year results, following the block of its potential merge with Asda. Last week, the Competitions and Markets Authority blocked Sainsbury’s £7.3 billion takeover of Walmart’s Asda (NYSE:WMT) because it would create a “poorer overall shopping experience”. The CMA found that the merger would lead to increased prices, despite the two supermarkets pledging to implement price cuts. It also said that the merger would lead to reductions in the quality and range of products on offer and a poorer shopping experience for consumers across Britain. “We will increase and accelerate investment in the core business, investing to improve over 400 supermarkets this year. £4.7 billion of our revenue now comes from our online businesses and we are increasing investment in technology to make shopping across Sainsbury’s, Argos and Sainsbury’s Bank as quick and convenient as possible,” Mike Coupe, Chief Executive of Sainsbury’s, commented in the company’s results. “We will also continue to strengthen our balance sheet and are making a new commitment to reduce net debt by at least £600 million over the next three years,” Mike Coup continued. Sainsbury’s, the UK’s second largest supermarket chain, posted an underlying profit before tax of £635 million. The figure is a 7.8% increase and is driven by solid food performance, delivery of £160 million Argos synergies nine months ahead of schedule and reduced interest costs. The supermarket also said that its was trailing the UK’s first checkout-free grocery store, as well as rolling out SmartShop self-scan in over 100 supermarkets. Argos sales grew, outperforming a highly competitive and “very promotional” market. In its outlook, it warned of the uncertainty surrounding the market. “Retail markets are highly competitive and very promotional and the consumer outlook continues to be uncertain,” Sainsbury’s said. Despite this uncertainty, it said that it remains well placed to deliver its strategy and cope with the external environment.