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Now, let's have a look at the socks on the move today here in Europe.
I'm Caroline Hepkin.
I'm joined by Bloomberg's Breaking News editor Louis Moon. Good morning, HSBC. Let's start there. They released new numbers this morning. Investors not reacting very positively.
Indie shares down in London and also in Hong Kong, so in both locations where they are listed. This after first quarter results. Profits missed estimates, so profits fell to nine point four billion US dollars. Blow estimates down to two main things. So one is four hundred dollars US dollars, four hundred million US dollars charge links to what they called HB called HSBC called fraud related secondary securitization exposure
with a financial sponsor in the UK. Now that's what reporting reported to be the now collapsed mortgage firm MFS.
So that's four hundred million US dollars.
And then as well as that, they also set aside three hundred million US dollars for impairments link to the.
Middle East War.
So a surprise fraud related charge and war related impairments dragging down HSBC's profits. Now, we've had a lot of banks reporting recently. Some others have also booked similar charges linked to the war. But many banks have reported, and particularly over in Wall Street, reported quite bonanza first quarter earnings. You know, strong numbers to HBC missing out on those in some bit of positivity and less are pointing to
kind of relative underlying strength. So HSBC's wealth unit did quite well in the first quarter, and the Hong Kong business also did quite well.
Obviously, they've been.
On a huge restructuring drive under the CEO since late twenty twenty four roughly, and analysts that have welcomed that, and shares have recently hit all time highs. But this first quarter not performing well and dragging down shares.
Yeah, okay, so that's HSBC elsewhere take over interest in inter Tech. How's that affecting its share price?
Shares reacting positively shut up this morning, up to about fifty two pounds per share. They've already risen about ten percent this year. That's after takeover interest by Swedish Privacy firm EQT, So they've they've they've made a revised proposal this morning, so for fifty eight pounds a share that values into Tech. This is the Footsie one hundred company, valuing it at almost nine billion pounds.
This is eqt's third attempt.
Intertech's already said no to two previous attempts for undervaluing it, so and they've said they've they've responded this morning saying that they're reviewing this office. So it's a bit of a wait and see as to whether they might accept this third proposal. So yeah, as I say, so, there's EQT could potentially take over, but Intertect themselves are also separately exploring whether they split up, so there's kind of
two things at play at the same time. So yeah, a bit of a wait and see as to whether this might go through this takeover.
Yeah, okay.
Meanwhile, Germany's Ryan Metta reporting today this company has been hugely in focused given an increased defense spending across Europe and especially in Germany.
It has so first quarter results this morning sales actually fell short of estimates, and they're predicting a shift of revenue into the second quarter.
So they've had some delays of shipments.
Part of that is down to one of their plants in Spain, there was an accent there so production was affected. So not doing so well this morning, but shares actually rising. They rose as much as well, just over two percent and disappointing set operating margins in line.
They can also confirm their guidance.
As I say, they're expecting a stronger performance than the second half. So overall first half growth is expected to be the same pace as last year, and there's early signs of improvement in those orders, so there's a bit of reassurance that's being kind of focused on.
There is some worries over some execution challenges.
There's obviously a lot more deliveries and orders, and there's no kind of clear breakdown in their growth numbers. But as I say, share the rising on that shift in revenue to the second quarter, so some signs of more hope going forward.
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