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(AWP Alliance News) - The FTSE 100 was in the red at midday on Tuesday, while other indices rose, as traders continued to digest escalating Middle East tensions. The FTSE 100 index was down 109.37 points, 1.1%, at 10,254.56. However, the FTSE 250 was up 18.52 points, 0.1%, at 22,550.13, and the AIM all-share was up 3.70 points, 0.5%, at 800.36. The Cboe UK 100 was down 1.2% at 1,021.84, the Cboe UK 250 was up 0.2% at 19,631.03, and the Cboe small companies was up 0.8% at 18,314.69. Brent oil was quoted higher at USD113.05 a barrel at midday in London on Tuesday from USD108.86 late on Friday. On the FTSE 100, Shell was up 0.6% while BP rose 0.5%. On the FTSE 250, Energean rose 2.6%. In Iran's latest warning to its enemies, its powerful chief negotiator warned the US against any further escalation in the Strait of Hormuz, after a spate of attacks risked reigniting the Middle East war following US President Donald Trump announcing a plan to guide ships from neutral countries out of the Gulf. The US military said its Apache and Seahawk helicopters hit six Iranian boats threatening commercial shipping and its forces repelled missile and drone attacks on Monday, while the UAE reported fresh Iranian attacks on its territory. 'We know full well that the continuation of the status quo is intolerable for America; whilst we have not even started yet,' Mohammad Bagher Ghalibaf, also the speaker in Iran's parliament, wrote in a post on X. Iranian Foreign Minister Abbas Araghchi will travel to Beijing on Tuesday for talks with Wang Yi, his Chinese counterpart, the foreign ministry said. Intertek continued to lead the FTSE 100, up 7.2%. The assurance, inspection, product testing and certification company aid it is reviewing a higher takeover bid from Luxembourg-based investment advisory EQT Fund Management. EQT boosted its potential offer for Intertek to 5,800 pence per share from 5,400p per previously. Interek had rejected the 5,400p bid, as well as an opening approach priced at 5,150p per share, saying it 'fundamentally undervalues Intertek and its future prospects'. HSBC continued to lead the laggers, down 5.1%. The Asia-focused lender said pretax profit fell 1.1% to USD9.38 billion in the first quarter ended March 31 from USD9.48 billion a year earlier, after its change in expected credit losses and other credit impairment charges surged 49% to USD1.30 billion from USD876 million, worse than USD1.19 billion consensus. HSBC said this reflected a USD400 million fraud-related, secondary, securitisation exposure with a financial sponsor in the UK, which the Financial Times said was tied to collapsed UK mortgage lender Market Financial Solutions. HSBC also noted a USD300 million increase in allowances to reflect the possible impact of the Middle East conflict. Chrysalis Investments, on the FTSE 250, lost 6.4%. The Guernsey-based, UK and Europe-focused investor has progressed its transition to a self-managed model, which it expects to complete by the expiry of its investment adviser's notice period on August 20. Also, its NAV per share fell 17% to 137.27p as at March 31, from 165.36p at December 31. However, Chrysalis said this largely reflects the performance of global equity markets over the period, with March 30 having been the year-to-date low for the S&P 500 and Nasdaq indices. On AIM, Autins surged 29% higher. The acoustic and thermal insulation solutions company said it expects to report net profit of GBP170,000 for the year to March 31, swinging from a GBP1.2 million loss. This is despite revenue falling to GBP17.6 million from GBP19.3 million, in light of a cyber attack on its 'largest UK customer'. Ethernity Networks plummeted 40%. The data processing semiconductor technology firm now expects revenue between USD1.6 million to USD1.8 million for 2026, and says it 'has implemented immediate measures to preserve the company's cash and maintain operational continuity.' Ethernity explained that its cash flow plan for 2026 was based, in part, on anticipated revenues from customers and the exercise of outstanding warrants over its ordinary shares. 'As of the date of this announcement, such warrant exercises have not materialised and, given the current share price, the likelihood of near-term exercise is considered low,' it said. Automotive online marketplace Autotrader rose 0.7% on the FTSE 100. The country's UK car market grew by nearly a quarter last month as it displayed a 'rebound' from tax rises, an industry body said. Some 149,247 new cars were registered in April, the Society of Motor Manufacturers & Traders said. That was a 24% increase from the same month last year. Registrations in April 2025 were much lower than normal as many drivers had brought purchases forward to the previous month to avoid incoming tax increases. In European equities on Tuesday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt was up 1.1%. EU chief Ursula von der Leyen said the bloc is 'prepared for every scenario' after US President Donald Trump threatened to hike levies on European cars. 'A deal is a deal, and we have a deal,' the European Commission president told reporters in Yerevan, adding: 'We are both implementing this deal while respecting the different democratic procedures we have on both sides.' Trump vowed on Friday to raise tariffs on EU cars and trucks from 15 to 25%, accusing the bloc of reneging on a trade accord struck last year - a charge von der Leyen rejected. Meanwhile, corporate bankruptcies in Western Europe rose to their highest level on record last year, according to a report by the private German firm Creditreform. The number of insolvencies climbed 4.8% year-on-year to around 197,610 cases in 2025, marking the fourth consecutive increase and the highest level since records began in 2002. 'The crisis is not only cyclical, it is structural. Weak global trade and geopolitical risks are weighing on European companies,' said Patrik-Ludwig Hantzsch, head of economic research at Creditreform. High energy costs and bureaucracy are also undermining competitiveness, particularly compared with the US and China, he added. 'This double burden is eroding the very foundations of many businesses.' A further increase in insolvencies is expected this year. The pound was quoted lower at USD1.3549 around midday Tuesday, compared to USD1.3626 on Friday. Against the euro, sterling rose slightly to EUR1.1581 from EUR1.1578 a day prior. The euro stood lower at USD1.1693, against USD1.1731. Against the yen, the dollar was trading higher at JPY157.58 compared to JPY156.74. Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.6%. The yield on the US 10-year Treasury was quoted at 4.42%, widening from 4.38%. The yield on the US 30-year Treasury was quoted at 5.01%, widening from 4.97%. Gold was quoted lower at USD4,548.27 an ounce against USD4,637.78 on Friday. Fresnillo lost 2.6% on the FTSE 100, while on the FTSE 250, Hochschild lost 3.2%. 'Gold rebounded slightly on Tuesday as Treasury yields eased to some extent, but the metal remained near monthly lows...Intensifying tensions in the Middle East, including renewed incidents in the Strait of Hormuz, could leave energy flows under pressure, sustaining global inflation concerns and supporting Treasury yields, which could leave bullion under pressure,' warned FXEM Market Research & Fintech Strategy Manager Abdelaziz Albogdady. 'At the same time, US interest rate cuts are still largely priced out this year, with central banks globally expected to maintain monetary policy unchanged or even tighten it in response to persistent inflation risks,' Albogdady continued. 'The cautious narrative supports bond yields across the globe and weighs on non-yielding assets like gold, limiting its potential to recover.' Still to come on Tuesday's economic calendar, the US and Canadian composite PMI releases are due in the afternoon. By Emma Curzon, Alliance News reporter Comments and questions to newsroom@alliancenews.com Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - Shares in HSBC Holdings PLC were knocked on Tuesday as it reported higher than expected credit losses in its first quarter, including a surprise USD400 million fraud-related charge in the UK. The news came as Asia-focused bank HSBC said pretax profit fell in the first quarter of 2026, despite reporting strong net fee and net interest income growth. HSBC said pretax profit fell 1.1% to USD9.38 billion in the first quarter ended March 31 from USD9.48 billion a year earlier. 'The decrease reflected higher expected credit losses and other credit impairment charges,' HSBC said. Change in expected credit losses and other credit impairment charges surged 49% to USD1.30 billion from USD876 million, worse than USD1.19 billion consensus. HSBC said this reflected a USD400 million fraud-related, secondary, securitisation exposure with a financial sponsor in the UK as well as a USD300 million increase in allowances to reflect the possible impact of the Middle East conflict. The Financial Times on Tuesday said the UK fraud charge was tied to collapsed UK mortgage lender Market Financial Solutions, citing people familiar with the matter. 'We have an exposure to a financial sponsor who has an exposure to the company,' HSBC's chief financial officer Pam Kaur said on a media call, without naming the group. A USD400 million loss would place HSBC among the lenders hardest hit by the MFS implosion. Last week, Barclays PLC took a GBP228 million hit from its demise. Citi analyst Andrew Coombs said the charge was 'not expected.' HSBC shares were down 5.1% at 1,290.60 pence each in London on Tuesday. Diluted earnings per share rose 2.6% to USD0.40 from USD0.39. The bank maintained its dividend for the first quarter at USD0.10 per share. 'A decision to recommence buy-backs will be subject to our normal buy-back considerations and process on a quarterly basis,' HSBC said. Net interest income rose 7.7% to USD8.95 billion from USD8.30 billion, while net fee income jumped 12% to USD3.72 billion from USD3.32 billion. Net operating income increased 3.3% to USD17.32 billion from USD16.77 billion. Chief Executive Officer Georges Elhedery said: 'Each of our four businesses contributed to firm-wide revenue growth and each delivered an annualised [return on tangible equity] in excess of 17%, excluding notable items. 'In periods of greater uncertainty, customers turn to us more as their trusted partner to navigate complexity with the financial strength, stability and expertise they know they can rely on. We remain confident in achieving the targets we set out in February 2026.' Total operating expenses excluding amortisation and impairment of intangible assets rose 6.8% to USD8.00 billion from USD7.49 billion. At 1.60% the net interest margin improved slightly from 1.59% last year. HSBC's common equity tier one ratio reduced to 14.0% from 14.7%, although the bank said it intends to continue to keep it within the medium term target range of 14.0% to 14.5%. Total shareholders' equity rose to USD196.82 billion from USD190.81 billion. 'The macroeconomic outlook is facing heightened uncertainty, creating volatility in both economic forecasts and financial markets resulting in both tailwinds and headwinds. The group is well positioned to manage the impacts of these challenges through our high-quality revenue streams, conservative approach to credit risk and strong deposit franchise,' HSBC said. To reflect an improved interest rate outlook, HSBC now expects banking net interest income to reach around USD46 billion in full-year 2026, up from prior guidance of at least USD45 billion. The bank also said it is on track to deliver USD1.5 billion of annualised cost savings by the end of June, six months earlier than planned. By Elijah Dale, Alliance News senior reporter Asia-Pacific (updated by Jeremy Cutler, Alliance News reporter) Comments and questions to newsroom@alliancenews.com Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - Ineos has joined forces with Shell PLC to drill for new oil and gas in the US as Chair Jim Ratcliffe said he was prioritising investment across the pond rather than in Europe. Ineos Energy, the energy division of the chemicals company, said it had acquired a 21% interest in a portfolio of assets owned by a subsidiary of Shell. The two companies will jointly invest in exploration and production opportunities for oil and gas in the Gulf of Mexico, the body of water which US President Donald Trump has renamed as the Gulf of America. This will include developing Shell's Fort Sumter oil and gas discovery, drilling into the Sisco exploration well, and looking for another exploration well by the end of 2030. The price of the deal was not disclosed. Ineos said the deal marked the latest step in its deliberate shift of investment to the US, where it has committed more than USD3 billion of investment. Chair and founder Jim Ratcliffe, a British billionaire businessman, criticised the UK's energy policy which he said has been inconsistent compared with a more stable landscape in the US. He said: 'Europe is all over the place. From an investment point of view, you always go to the stable rather than the unstable. I would have a lot more confidence in investments in America in the energy sector than I would in Europe.' Ratcliffe, who also co-owns Manchester United, has previously issued a warning that chemical production is plunging across Europe and urged taxation and policy change to 'save' the industry. David Bucknall, the chief executive of Ineos Energy, said its deal with Shell was supporting 'energy security'. He said: 'Partnering with Shell on these opportunities is a natural step. We are focusing on areas close to existing infrastructure where we can move quickly, control costs and unlock new production. This is disciplined growth targeting exploration, shared risk, and returns. These opportunities strengthen our portfolio and support long-term energy security.' Shell shares were 0.5% higher at 3,305.00 pence each on Tuesday morning in London. By Anna Wise, Press Association Business Reporter Press Association: Finance source: PA Copyright 2026 Alliance News Ltd. All Rights Reserved.