4 FTSE Stocks in the news- Rio Tinto, HSBC Holdings, Morrisons, Easyjet

Summary 

• HSBC Holdings reported a fall in revenue because of the low interest rate worldwide and lower revenue from Markets and Securities Services.
• Morrison Plc largest shareholder could reject the possible takeover bid by the US-based private equity firm Fortress.
• Rio Tinto Plc has committed capital of USD 2.4 billion for the Jadar project in Serbia.
• EasyJet Plc could raise £500 million in equity to overcome losses which the company face due to pandemic and lockdown.

London Stock Exchange direction in the coming week will be guided by the results of blue-chip companies. The Investor will also keep an eye on UK’s Manufacturing PMI data for August. IHS-Markit/CIPS Manufacturing PMI fell to a four-months low to 60.4 in July, indicating lower output and new order growth during the last month survey.

Let us look at 4 FTSE listed companies that are making headlines today:

HSBC Holdings Plc (LON: HSBA)

HSBC Holdings is one of the largest financial service providers globally, which has a presence in 64 countries and provides personal and commercial banking and wealth management service for its 40 million customers.

The lender reported USD 25.6 billion in revenue, down by 4% during the first six months of this year, mainly because of lower interest rate scenario across all global markets and lower revenues from the Markets and Securities Services ('MSS'). On the other hand, bank’s deposits grew by USD 26.3 billion while profit before tax rose to USD 10.8 billion during the same period. Buoyed by earnings, the company announced an interim dividend of $0.07 per ordinary share for the first half. The dividend would be paid in cash and would not have any scrip alternative.

Shares of HSBC Holdings Plc trades at GBX 403.10, up by 1.42% on 2 August at 8.45 GMT+1 with a market cap of £82.3 billion.

Morrison Supermarket Plc (LON: MRW)

The supermarket chain operator is the fourth-largest supermarket chain in the UK. It has 494 stores across England, Wales, and Scotland with 10% market shares.

Silchester Asset Management, the largest shareholder of Morrison Plc with a 15% stake, said they are likely to turn down the £6.3 billion takeover bid of Morrison Plc by the US-based private equity firm Fortress. The Asset management firm said Morrisons’ board should wait and allow other parties to respond, offering better value to its shareholders. The takeover bid requires the support of at least 75% of shareholders of the company and voting for the same will take place on 16 August 2021. Meanwhile, Clayton Dubilier & Rice (CD&R), whose earlier bid was rejected, is reconsidering and may come up with a new bid for Morrisons. CR&R has been given time until 9 August to walk away of present a firm intention.

Morrison Supermarket Plc shares trade at GBX 270.8, up by 1.20% on 2 August at 8.45 GMT+1 with a market cap of £6.52 billion.

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Rio Tinto Plc (LON: RIO)

The company is the second-largest metal and mining company globally and mines and produces key industrial metals like copper, iron ore, uranium, gold, nickel, and diamonds used as raw materials to manufacture many end products.

Rio Tinto is joining hands with Komatsu to speed up the development and execution of zero-emission mining haulage solutions. Rio Tinto Plc has committed funding of USD 2.4 billion for the Jadar mining project in Serbia. The Jadar project will produce lithium carbonate, which is used as a critical raw material in the mass production of electric batteries, which powers the electric vehicles and store energy. In addition, the project will produce borates as well, which is used in solar panels and wind turbines. Jadar project will help Rio Tinto Plc become the largest supplier of lithium in Europe for the next 15 years at least.

The company reported a 143% rise in net cash generated from the operating activities at USD 13.7 billion during the first six months of this year. High revenue was reported because of the rise in commodity prices of iron ore, aluminium and copper.

Shares of Rio Tinto Plc trades at GBX 6198, up by 1.59% on 2 August at 8.45 GMT+1 with a market cap of £100.26 billion.

EasyJet Plc (LON: EZJ)

The company operates the airlines business in Europe and also engages in the trading and leasing of aircraft.

As per market speculations, EasyJet Plc could raise £500 million in equity funding. The company’s new finance head, Kenton Jarvis, has been reviewing the company’s fund requirement as the budget airlines battle with the fallout from the pandemic.

The company reported £212.9 million in revenue during the quarter ended 30 June 2021 with 17% capacity. The company expects to operate on 60% capacity in the fourth quarter of this year with ease in lockdown and travel restrictions.

Shares of EasyJet Plc trades at GBX 856.80, up by 1.25% on 2 August at 8.45 GMT+1 with a market cap of £3.91 billion.