Business news live: FTSE 100 reaction as HSBC sees profits drop, Nationwide launches benefits line

Good morning and welcome to our live blog coverage of all the UK’s business and companies news, where we’ll also bring you stock market movements and everything else regarding your money.

Today we start with more high-profile FTSE 100 firms reporting their latest earnings, with US behemoths Microsoft and Meta doing the same tonight.

Here are the earlier headlines for you from yesterday to catch up on:

Yesterday saw shares in Barclays rise almost 2.5 per cent and AstraZeneca almost 3.5 per cent after reporting strong profits for the half-year so far.

Greggs, however, fell more than five per cent after confirming a disappointing period – and confirming they’d open more stores this year.

Today it’s the turn of more high-profile names to present their latest reports and we’ll get you a rundown from each in the next hour or two.

Mining firm Rio Tinto, Asia-focused bank HSBC, pharma firm GSK and renewable energy firm UK Greencoat Wind are all on the agenda.

It may be easier said than done, but the process of improving your financial standing over time can really be summarised in two steps:

First, spend less than you earn. And second, put the excess earnings to good use.

The first step is a matter of budgeting, and your options are simple: cut costs or increase income. At step two, your options become diverse and complex, and your choices can lead to very different outcomes over the long term.

Is it better to overpay your mortgage or invest the money? Becky Wilding takes a look for Independent Money:

HSBC has reported its latest earnings for the second quarter of the year, with profits at $6.3bn (£4.7bn) – a drop of 29 per cent year on year.

Despite that fall, the bank has launched a $3bn buyback scheme for its own shares, along with declaring an interim dividend matching last quarter’s payout, of 10 cents per share.

HSBC also cautioned that the global outlook could impact profitability going forward.

Nationwide Building Society have launched a new telephone helpline for aiding people claiming benefits.

The service will be available for all, not just Nationwide customers, as the the lender says £23 billion is being left unclaimed.

A calculator service helps people apply for benefits they are entitled to, while the building society is also calling on the government to make it easier to access unclaimed benefits.

Kathryn Townsend, Nationwide head of customer vulnerability, said: “Millions of people across the UK are missing out on vital financial support they are entitled to simply because the system is too complex to understand and access.

“Our partnership with Policy in Practice means more people, including those who perhaps can’t or prefer not to use digital services, can get the help they need to increase their income. By offering the choice of an online process and a telephone call, we are hopefully making what can be a daunting and confusing experience that little bit simpler.”

Matt Britzman, senior equity analyst at Hargreaves Lansdown, says the headline numbers for HSBC are “skewed” due to one-off costs – but that doesn’t cover the fact it looks more difficult for HSBC to grow than for some of its domestic-focused rivals.

“Another quarter, another messy set of results for HSBC. Headline numbers have, once again, been skewed by one-off items. HSBC took a $2.1 billion hit due to the accounting impact of dilution and impairment in its Chinese bank holding – not for the first time – but these do not affect capital levels. Underlying performance was far more encouraging, with pre-tax profit coming in comfortably ahead of consensus, driven by strong growth in wealth management.

“Capital levels remain robust enough to support another $3 billion buyback, but the medium-term outlook is murky.

“While guidance was technically unchanged, it came with caveats. Tariffs are a concern, not necessarily due to their direct impact, but because of the potential for broader economic pressure. Management included a subtle warning that suggests some unease about the road ahead.

“The outlook for HSBC is a lot muddier than some of its UK-focused peers like NatWest and Lloyds, where the path to earnings growth is much clearer.”

Pharmaceutical firm GSK have reported second quarter operating profits of £2.02bn – an increase of 33 per cent to the same period one year earlier.

Sales in the HIV portfolio of drugs rose 12 per cent to contribute to that, with management indicating year-long guidance should come in at the upper end of earlier estimates as a result.

A second-quarter dividend of 16p was announced, with the full-year 64p dividend forecast kept intact.

Derren Nathan, head of equity research at Hargreaves Lansdown, suggests the short and longer-term outlook is good for GSK, with management potentially exceeding targets for this year and with room to grow beyond.

“The prognosis for GSK is looking positive. It hasn’t let itself get too distracted by tariff uncertainty, with both second-quarter sales and earnings coming in ahead of market forecasts.

“That’s given management confidence of a full-year outcome in the upper half of the guidance range, and there may well be scope for final numbers to land a little better than that. Current guidance includes tariffs imposed so far, which look to be less draconian than the market’s been expecting. GSK also has some mitigation measures up its sleeve if the situation worsens.

“There’s been solid progress in the clinic too, with the target of five new product approvals this year still in sight, despite the recent regulatory setback for Blenrep (for multiple myeloma) in the United States.”