Category: Top Story

HSBC Holdings plc (LSE:HSBA) reported a slight decline in first-quarter profit, as higher credit charges and operating costs offset solid revenue growth driven by its wealth division and net interest income.

Europe’s largest lender posted profit before tax of $9.4 billion for the three months to March 31, down 1% from the same period last year. The bank attributed the decline to increased expected credit losses, higher expenses, and the impact of one-off items.

Shares Fall Despite Revenue Growth

HSBC shares dropped more than 5% in London trading following the results.

Revenue increased 6% to $18.6 billion, supported by strong fee income from wealth management and improved net interest income. Net interest income rose 8% to $8.9 billion, benefiting from deposit growth and reinvestment at higher yields.

Credit Losses and Costs Climb

Expected credit losses rose by $400 million to $1.3 billion, partly linked to a fraud-related exposure in the UK and a more uncertain economic backdrop tied to conflict in the Middle East.

Operating expenses increased 8% to $8.7 billion, reflecting inflationary pressures, higher investment in technology, and performance-related compensation.

HSBC reported an annualised return on tangible equity of 17.3%, or 18.7% excluding notable items.

Outlook: Strong Returns but Rising Risks

Looking ahead, the bank reaffirmed its target of achieving a return on tangible equity of at least 17% over the 2026–2028 period. It also slightly raised its 2026 net interest income guidance to around $46 billion, while cautioning that macroeconomic conditions remain uncertain.

“Q1 26 results contained a fair amount of noise across revenue and cost lines, but the underlying picture is one of a mildly stronger banking NII print and ongoing strength in Wealth. On this point, ’26E banking NII guidance has been raised to $46bn (in-line with street),” Jefferies analysts commented.

The bank now expects credit losses to reach around 45 basis points of loans this year, higher than previous guidance, highlighting continued exposure to global economic risks.

Empire Metals Limited (LSE:EEE) has completed its largest-ever drilling programme at the Pitfield Titanium Project in Western Australia, with early assay results from the Thomas prospect confirming and extending a significant near-surface, high-grade mineralised zone.

Initial results from the first 88 holes of a 712-hole अभियान revealed multiple thick intercepts grading above 7% TiO₂, with several intervals exceeding 10% TiO₂ and a peak value of 17.83% TiO₂. These findings further support Pitfield’s position as a large-scale and high-grade titanium system.

Extensive Drilling Strengthens Resource Potential

The full campaign covered 712 drill holes totalling 34,844 metres, more than doubling cumulative drilling across the project to 67,846 metres. This expanded dataset is expected to underpin updated resource estimates at the Thomas prospect and contribute to a significant resource increase at Cosgrove later this year.

Ongoing infill and step-out drilling, combined with more than 17,000 samples currently undergoing laboratory analysis, are aimed at refining the extent of mineralisation and reducing geological uncertainty. The results are also expected to support early-stage economic assessments of the project.

Outlook Limited by Financial Constraints

Despite strong exploration progress, Empire Metals’ outlook remains constrained by its financial position, including a lack of revenue, ongoing losses, and continued cash burn, which increase reliance on external funding.

Market indicators also suggest weak momentum, with the share price trading below key moving averages. While the company maintains a low-debt balance sheet, this has yet to translate into profitability.

More About Empire Metals Limited

Empire Metals Limited is a resource exploration and development company focused on advancing large-scale mineral projects. Its flagship asset is the Pitfield Titanium Project in Western Australia, where it is targeting extensive near-surface titanium mineralisation.

Listed on AIM in London and trading on the OTCQX market in the United States, the company aims to establish itself as a significant participant in the global titanium supply chain through the development of its key assets.

Vodafone Group Plc (LSE:VOD) has agreed to acquire CK Hutchison’s remaining 49% stake in the VodafoneThree UK joint venture for £4.3 billion through a share cancellation, giving it complete control of the UK’s largest mobile operator and a rapidly expanding broadband provider.

The transaction values VodafoneThree at an enterprise value of approximately £13.85 billion and will be funded from existing cash resources. While the deal is expected to slightly increase leverage, it strengthens Vodafone’s strategic control over a key domestic asset.

Integration Gains and Synergy Potential

Since the merger of Vodafone UK and Three UK in 2025, the combined business has delivered faster-than-expected integration progress. Improvements have been seen in 5G coverage, network performance, and reliability, alongside stronger customer retention and increased cross-selling of broadband and Fixed Wireless Access services.

Vodafone believes that full ownership will enable it to accelerate investment in network infrastructure and unlock around £700 million in annual cost and capital expenditure synergies by FY2030. The company also plans to retain VodafoneThree’s existing leadership team and continue operating a multi-brand strategy.

Regulatory Approval and Strategic Importance

The deal is expected to complete in the second half of 2026, subject to approval under the UK’s National Security and Investment Act, given Vodafone’s move to full ownership.

VodafoneThree’s financial results are already fully consolidated within Vodafone’s accounts, and the company intends to host an investor briefing later this year to outline future priorities and growth plans—highlighting the UK business as central to its long-term strategy.

Outlook Reflects Strategic Progress With Financial Considerations

Vodafone’s outlook combines positive strategic developments with ongoing financial considerations. Strong technical momentum and constructive management commentary support the investment case, while concerns around financial performance and valuation remain factors for investors.

Corporate activity, including this transaction, adds further support to the company’s forward outlook.

More About Vodafone Group Plc

Vodafone Group Plc is a leading telecommunications provider operating across Europe and Africa, serving more than 360 million customers in 15 countries.

The group offers mobile and broadband services, alongside extensive subsea cable infrastructure, one of the world’s largest Internet of Things platforms, and digital financial services across African markets, reaching tens of millions of users.

UK Oil & Gas PLC (LSE:UKOG) has submitted a retrospective planning application to Surrey County Council for its Horse Hill oil field, seeking to reinstate the full production consent originally granted in 2019.

The move follows a 2024 ruling by the UK Supreme Court, which determined that the earlier approval was unlawful due to the omission of downstream greenhouse gas emissions from the environmental assessment.

Revised Submission Addresses Environmental Requirements

After the court decision, UK Oil & Gas halted production at Horse Hill in October 2024. Since then, the company has worked with regulators and planning specialists to prepare a revised application.

The updated submission includes new ecological and environmental studies, technical documentation, and a detailed evaluation of emissions linked to the end use of extracted hydrocarbons—addressing the issues raised by the court.

Restart Could Support Energy Transition Strategy

If approved, the application would allow production at Horse Hill to resume on a stable basis, restoring a key revenue stream for the company. UK Oil & Gas has indicated that future income from the field would be reinvested into its transition strategy, including hydrogen storage and other low-carbon energy projects.

This approach reflects the group’s aim to balance ongoing oil and gas operations with participation in the UK’s broader energy transition.

More About UK Oil & Gas PLC

UK Oil & Gas PLC is an AIM-listed energy company focused on onshore oil and gas production in the United Kingdom.

The company holds a significant operated interest in the Horse Hill field in Surrey and is expanding into clean energy initiatives, including planned hydrogen storage developments and other low-carbon projects in regions such as Dorset and Yorkshire.

Altona Rare Earths Plc (LSE:REE) has released updated JORC-compliant mineral resource estimates for fluorspar and gallium at its Monte Muambe project in Mozambique, highlighting the project’s expanding scale and multi-commodity potential.

The company confirmed 3.48 million tonnes of fluorspar-bearing ore with an average grade of 20.6% CaF2. This supports an initial mine life of around 9.5 years based on annual production of 50,000 tonnes of acid-grade concentrate and paves the way for detailed scoping studies.

Gallium Resource Adds Strategic Upside

Alongside fluorspar, Altona reported an inferred gallium resource of 11.73 million tonnes grading 54.7 g/t Ga2O3. This is among the few code-compliant gallium resources globally and is believed to be the first defined within a carbonatite system.

The company sees significant upside potential, noting that only a fraction of identified gallium anomalies has been drilled. Further exploration could expand the resource beyond 40 million tonnes, potentially supporting a standalone gallium development in addition to fluorspar and rare earths operations.

Development Pathway Strengthens Multi-Commodity Case

The fluorspar resource, covering both measured and inferred categories across key zones, reinforces the economic case for mine development. Additional exploration targets such as Kudu and Jambire could further scale the project, potentially supporting production of up to 100,000 tonnes per year.

At the same time, Altona is progressing metallurgical testing programmes for fluorspar in South Africa and gallium in Canada and Poland, alongside ongoing studies into heavy rare earths. Management views Monte Muambe as a project with multiple parallel development pathways, offering several routes to value creation as technical work advances.

Outlook Impacted by Financial Constraints

Despite strong project momentum, Altona’s outlook remains constrained by its financial position, characterised by a lack of revenue, ongoing losses, cash burn, and increasing leverage.

Positive technical indicators, including a share price trading above key moving averages and supportive momentum signals, provide some offset. However, valuation remains limited by negative earnings and the absence of dividend support.

More About Altona Rare Earths

Altona Rare Earths Plc is an exploration and development company focused on critical minerals in Africa. Its flagship Monte Muambe project in Mozambique hosts rare earths, fluorspar, and now gallium within a carbonatite deposit.

Listed in London and on the OTCQB, the company targets materials essential for the energy transition, advanced technologies, and industrial processes, positioning itself within global supply chains for strategically important resources.

Shares in Diageo (LSE:DGE) rose almost 2% on Friday after Donald Trump announced plans to lift tariffs on whisky imports following a White House visit by King Charles III and Queen Camilla.

“In Honor of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful Country, I will be removing the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon,” Trump wrote on Truth Social.

He added that the royal visit “got me to do something nobody else was able to do, without hardly even asking.”

Industry Relief After Prolonged Pressure

The whisky sector has faced sustained pressure from elevated tariffs and declining alcohol consumption. According to the Scotch Whisky Association, the levies have been costing the industry around £4 million per week.

Diageo, which owns major brands such as Johnnie Walker, Talisker, and Lagavulin, had previously announced plans to scale back production at certain distilleries to offset softer demand conditions.

Trade Context and Tariff Background

A trade agreement between the United States and the United Kingdom reached in 2025 maintained a baseline tariff of 10% on most British goods, including whisky. This was a reduction from the первоначально proposed 27.5% rate outlined by Trump earlier in negotiations.

AstraZeneca (LSE:AZN) shares moved lower on Friday after an independent advisory panel to the U.S. Food and Drug Administration voted against backing the risk-benefit profile of its experimental breast cancer therapy, camizestrant.

The stock declined 1.6% in London by 07:37 GMT.

Advisory Committee Vote Raises Regulatory Concerns

The FDA’s Oncologic Drugs Advisory Committee voted 6–3 against the oral treatment, which is being developed as a first-line option for a subtype of breast cancer linked to a specific genetic mutation. The panel determined that the drug did not demonstrate a “meaningful benefit” for patients whose disease had not progressed on existing therapies.

Although such advisory votes are not legally binding, regulators often align with the panel’s recommendations. A final ruling from the FDA is expected at a later date.

Analysts Flag Impact on Approval Prospects

The outcome introduces “regulatory overhang and a dent to investor sentiment,” according to analysts at Morgan Stanley led by Sarita Kapila.

“We see a decreased likelihood of approval in the SERENA-6 setting following the 6–3 negative ODAC vote, though approval remains possible,” they noted.

Company Response and Trial Data

AstraZeneca said it was “disappointed” with the panel’s decision but maintained confidence in both its clinical data and the drug’s potential to benefit patients.

Trial results showed that camizestrant extended the time before disease progression by more than six months. When used alongside other cancer treatments, patients experienced a median progression-free period of 16 months, compared with 9.2 months under the current standard of care.