Financial News

LONDON (ShareCast) - The market ended the week, and indeed the month, on a sour note, with the FTSE 100 closing on Friday at 5045, down 198 points on the week.

Equity view

BP kicked off the oil majors results season with third quarter figures that showed a smaller than feared drop in profits. Profit attributable to shareholders came to $5.34bn from $8.05bn in the third quarter last year. Analysts predicted nearer $3bn.

BG Group (LSE: BG.L - news) has reported a drop in third quarter pre-tax profit to £838m from £1.53bn a year ago, with nine-month profit down to £3bn from £4.20bn. The oil and gas giant said net income fell to £484m in the three months to September, down from £857m the same time last year.

Royal Dutch Shell (Amsterdam: RDSA.AS - news) 's results palled in comparison to those from long time rival BP. The Anglo-Dutch oil giant's third quarter earnings (on a current cost of supplies basis) of $3bn, down from $10.9bn a year ago, failed to enthuse the market.

Strong sales in emerging markets helped drug giant GlaxoSmithKline (LSE: GSK.L - news) post a rise in revenues in the third quarter. Pre-tax profits in the three months to September 30 totalled £2.065m, compared with £1.913m over the same period the previous year as turnover climbed to £6.758m from £5.882m.

Drugs leviathan AstraZeneca (LSE: AZN.L - news) has yanked the US and European regulatory submissions for its lung cancer treatment Zactima. The applications were submitted in June but after further analysis of test results no overall survival advantage was discerned when chemotherapy treatment was augmented by a dose of Zactima. The setback was announced the day before the Anglo-Swedish firm announced strong third quarter earnings that beat market forecasts.

Economic events

The high street enjoyed a pick up in business during the year to October, with a modest rise in retail sales turning out to be the most positive rate in almost two years. Today's monthly Distributive Trades Survey from the CBI showed 41% of retailers reported a rise in volumes, while 33% said they had fallen.

UK mortgage approvals for house purchase hit a 18-month high in September, according to new figures out today. The Bank of England said mortgage approvals rose to 56,215 in September from 52,970 in the previous month and were up by 68.2% year-on-year. The figure was better than expectations of around 54,000 and hit its highest level since March 2008. Mortgage approvals fell to a record low of 27,257 last November (Frankfurt: A0Z24E - news) .

UK consumers are more confident now than at any time in the last 21 months, according to a survey released Friday. The GfK/NOP consumer confidence index improved to -13 in October, the best number since January 2008. That's up from -16 the month before, beats forecasts for a read of -14 and is 23 points better than this time last year.

The UK economy may still be stuck in a recession but the housing market is at last showing signs of life, according to the latest survey on house prices from the nation's biggest building society, the Nationwide. The price of a typical house rose by 0.4%, on a seasonally adjusted basis, in October to £162,038, after rising 0.9% in September, according to the Nationwide's house price survey. International news

The US government's huge spending programme and higher car sales helped the American economy grow for the first time in a year during the third quarter. Initial estimates for GDP in the three months revealed a 3.5% annual increase, more than the 3.2% improvement expected by economists. That's also the fastest rate of increase in two years, having contracted by 0.7% in the second quarter.

However, the end of the car scrappage scheme contributed towards US consumer spending falling for the first time in five months in September.

Exxon Mobil (NYSE: XOM - news) suffered a bigger than expected drop in earnings during the third quarter as a weak global economy and lower demand slashed oil prices. The US giant said earnings fell 68% in the three months to $4.73bn, or 98 cents a share. Analysts had pencilled in a figure of nearer $1.03 a share. Last year's record energy prices had sent profits rocketing to $14.83bn, or $2.85 a share, which includes a one-off gain of $1.45bn.

US oil giant Chevron (NYSE: CVX - news) saw profits fall by more than half in the third quarter after being hit by sharply lower oil prices. The firm reported net income of $3.83bn, down 51% from $7.89bn in the third quarter of 2008. Revenues totalled $45bn, compared with $76bn in the same period the previous year.

US food and household goods giant Procter & Gamble announced sales and profits ahead of expectations in the first quarter as new product launches helped stem the loss of customers to cheaper alternatives. Net sales for the quarter fell by 6% from the same period a year ago to $19.8bn, compared with expectations of a 7% to 10% decline, said P&G whose products include Pampers nappies, Charmin toilet paper and Pringles crisps.

Deutsche Bank (Xetra: 514000 - news) has seen third-quarter earnings more than triple and said all its business segments were profitable in the period. Germany's largest bank made a net profit of €1.4bn in the three month ended September from €414m previously. For the first nine months of 2009, net income was €3.6bn compared with €918m in 2008. Income before taxes was €4.4bn versus €481m in the prior year period.