FTSE 100 Live: Lloyds and Shell posts results after Meta shares slide

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Shell and Lloyds Banking Group results today lead a busy session of corporate updates as investors also digest last night’s disappointment from the meta platform.

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Shares of the Facebook, Instagram and WhatsApp owner fell 20% as it missed third-quarter earnings estimates and flagged tough conditions in the current period.

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Lloyd’s, the UK’s largest mortgage lender, reported a 17% fall in third-quarter underlying profits to £1.73 billion as it increased bad loan provisions compared to a year ago.

Shell’s adjusted earnings figure of $9.45 billion (£8.1 billion) was more than double from a year ago, but down 18% in the previous quarter.

live update

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Lloyds’ bad loan provision impacts profits, shares fall

Lloyds said its credit performance has been resilient in the third quarter, with dues, defaults and write-offs at low levels and below pre-pandemic levels.

However, shares fell 1%, as the owner of mortgage lender Halifax disclosed an impairment provision of £668 million to cover future bad loans. Its underlying profit fell 17% to £1.7 billion.

Chief Executive Charlie Nunn said: “The current environment is of concern to many and we are committed to maintaining support for our customers.”

He said the group’s business model and prudent approach meant that Lloyds was well prepared to face uncertainties “while generating superior returns for our shareholders”.

Lloyds reported 13% net income growth in the quarter to £4.6 billion as a result of higher interest rates and increased customer activity. It now expects its net interest margin for 2022 to exceed 290 basis points, compared to 280 forecast in July.

“Despite being labeled as a barometer for Britain’s struggling economy, Lloyds has a strong quarter that underscores its strength and prudent planning,” said Richard Hunter, Head of Markets, Interactive Investor.

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Made.com stopped looking for buyer

Embattled furniture retailer Made has said it has abandoned the search for a buyer to rescue the firm after it acknowledged that “there is no reasonable likelihood that an offer will be made for the company’s issued and unissued share capital.” will be forthcoming.”

Yesterday the business said it had suspended taking new orders from customers as it was one step closer to a collapse. Made shares have fallen 99% in the past year.

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Unilever reports biggest quarterly jump in prices as inflation bites

Unilever said it saw its biggest ever quarterly increase in prices in the third quarter, up 12.5%. This breaks down to a 9.5% price increase in developed markets and 15% in emerging markets.

Unilever’s CFO Graeme Pitkethley told Standard that the company has also reduced pack sizes in many products to better manage prices.

Sales grew 10.6% in the third quarter, but sales volume fell 1.6%. Pitkethley said he expects sales to decline further in the next quarter.

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ECB rates to be decided, FTSE 100 sees decline

With blue-chip results, investors will need to keep interest rates in mind as the European Central Bank announces its latest decision later.

Economists expect a further hike of 0.75%, bringing the deposit rate to 1.5%.

Expectations that the Federal Reserve will slow the pace of interest rate hikes have helped support US markets in recent sessions, but ended after Europe closed yesterday as the S&P 500 lost 0.7%. Gone.

Disappointment over the results for Microsoft and Alphabet meant the Nasdaq lost 2%. After tonight ends, quarterly results for Amazon and Apple, the world’s most valuable public company, are due.

The FTSE 100 index closed 0.6% higher last night, but CMC Markets expects it to drop 20 points to 7036 when trading begins this morning.

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Meta hit by weak ad spend, shares fall

Shares of Meta Platform, which owns Facebook, Instagram and WhatsApp, fell 20% in trading after Wall Street closed, as investors reacted with disappointment to a 52% drop in net income to $4.4 in the quarter. billion (£3.8 billion). september.

Revenue of $27.71 billion (£23.8 billion) fell 4% year-on-year, reflecting the impact of a stronger dollar and an 18% reduction in average cost per ad.

Hargreaves Lansdowne analyst Sophie Lund-Yates said: This isn’t the first time the social media giant has lagged, and it reflects the fact that competition is fierce, with young entrants like TikTok a serious rival.

“In such uncertain and difficult times, all the big names are struggling, but Meta’s inability to maintain its share of the wallets of its customers is worrying.”

META’s total costs and expenses increased 19% to $22.1 billion (£19 billion), largely reflecting higher research and development spending.

Founder and CEO Mark Zuckerberg said, “While we face near-term challenges on revenue, there are fundamentals for a return to strong revenue growth.

“We are approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge as a stronger company.”

Credit: www.standard.co.uk /

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