Yahoo Finance What to Watch: RBS Brexit uncertainty, Deutsche Bank's revenue falls, and sales slide at WPP
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
RBS Brexit uncertainty
The Royal Bank of Scotland (RBS.L) unveiled better than expected first quarter results amid losing its CEO Ross McEwan and battling against Brexit uncertainty.
Net profit reached £707m ($912m), over the consensus forecast of £546m. However, that is still below £808m, which is what it recorded in the same period last year.
RBS also reported an operating profit before tax of £1bn, compared with £1.2bn in the first quarter last year. Income was lower at £265m but operating expenses also fell by £73m.
The bank specifically warned Brexit could impact year ahead performance, saying: “We recognise that the ongoing impact of Brexit uncertainty on the economy, and associated delay in business borrowing decisions, is likely to make income growth more challenging in the near term.”
Deutsche Bank’s revenue falls
Deutsche Bank (DBK.DE) published its first quarter results on Friday, showing a 9% fall in revenue to €6.4bn (£5.5bn, $7.1bn) but a better-than-expected 67% rise in net income to €201m.
The income outperformance was due to an aggressive cost-cutting drive by CEO Christian Sewing, who was brought in last year to help supercharge the bank’s long-running turnaround efforts. Non-interest expenses were down by 8% to €5.9bn in the quarter.
However, profits before tax fell by 32% to €292m and Deutsche Bank cuts its revenue forecast for the full-year. The bank is now telling investors to expect “essentially flat” revenues in 2019, having previously forecast “slightly higher” revenues.
WPP sales fall
Advertising giant WPP (WPP.L) reported a 2.8% fall in like-for-like sales in the first quarter as it continues to feel the pain of big client losses.
The group is grappling with several big-name account losses, which has dragged on its performance.
Chief executive Mark Read said: “As anticipated, our first quarter trading update reflects the impact of certain significant client losses in 2018, in particular in the United States.
“Although we face a challenging year, especially in the first half, I am encouraged by how well our people, agencies and clients are responding to our new strategic direction. Our expectations for the full year are unchanged.”
Total revenue was up 0.9% to £3.58bn.
AstraZeneca boosted by oncology
Revenue at drug maker AstraZeneca (AZN.L) rose by 11% in the first quarter, boosted by strong sales of oncology drugs.
The company said oncology drug sales rose by 54% in the first quarter, which helped contribute to an overall sales rise of 14% to $5.4bn. Operating profit rose by 68% to $1bn.
CEO Pascal Soriot said: “Together with this encouraging financial start to the year, our highly-productive and sustainable pipeline continued to deliver, notably with a regulatory approval for Lynparza in the EU for the treatment of metastatic breast cancer and approvals of Farxiga in type-1 diabetes.”
European markets
European stock markets were lower ahead of first quarter GDP figures in the US later today.
Britain's FTSE 100 (^FTSE) was down by 0.3%, Germany's DAX (^GDAXI) was down by 0.1%, France's CAC 40 (^FCHI) was down by 0.1%, and the Euronext 100 (^N100) was 0.2% lower.
Asian markets were lower overnight. Japan's Nikkei 225 (^N225) closed down by 0.2%, Hong Kong's Hang Seng index (^HSI) was flat, and China's benchmark Shanghai Composite (000001.SS) was 1.2% lower.
What to expect in the US
US stock futures were pointing to a lower open later today. S&P 500 futures (ES=F) were down by 0.1%, Dow Jones Industrial Average futures (YM=F) were down by 0.2%, and Nasdaq futures (NQ=F) were flat.
Companies reporting later today in the US include:
