(ARTICLE WRITTEN BY RODRICK DUCA, TRADER)
Markets in Europe closed flat to higher on Thursday as investors focused on banks’ earnings and digested the latest news on Brexit. Earlier, JPMorgan and Citigroup announced their results for the third quarter. EU’s chief Brexit negotiator Michel Barnier stated that the talks between the bloc and the United Kingdom over the post-Brexit financial settlement have reached a state of "deadlock" and called the current situation "very disturbing."
The FTSE 100 rose 0.35% to notch a record-high close. The best performer was St. James’s Place which jumped 3.10%. The DAX increased 0.09%. Lufthansa led the gains as it climbed 2.30% after the airline announced it will take over a significant part of Air Berlin. The CAC 40 was almost flat, down 0.03%.
The bankrupt airliner Air Berlin and Co. Luftverkehrs KG have put a significant section of their business under control of its larger German Competitor Lufthansa. Deutsche Lufthansa AG’s chief executive Carsten Spohr confirmed the agreement has been achieved, after earlier indicating it may concern 81 aircraft and 3,000 out of 8,000 employees.
The country’s flagship airliner will thus acquire assets after committing to investments of €1.5 billion euros in total. The purchase of the aeroplanes alone may cost it €200 million. Integration may take one year, while clearance from European Union regulators is expected within three months. Lufthansa was up 2.3% at the close of today’s trading session, while Air Berlin’s share price spiked closing 43.56% up.
Banking giant, Citigroup, said on Thursday its third-quarter earnings per share stood at $1.42 on revenues of $18.73 billion, which compares to last year’s earnings per share of $1.24 on revenues of $17.8 billion. The Manhattan-based Corporation’s net income was $4.1 billion versus $3.8 billion in the year before.
The Bank delivered a strong quarter, with revenue increase in many of the products offered and tightly managed expenses. The loan growth was also positive in both consumer and institutional business.
The New York City based financial services company’s net income was $6.73 billion, while earnings per share stood at $1.76. This represents a net income growth of 7% on a yearly basis while earnings per share advanced 11%. The company’s net revenues rose 3% to $26.2 billion compared to the year before.
Strong results have been achieved in a competitive environment in the third quarter with steady growth across the platform.
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