London View

HK Democracy Protests Hit Hang Seng, Apple Target of EU Probe, New Woes for Balfour Beatty

Mass protests in Hong Kong are continuing, with pro-Democracy groups having successfully blocked off a significant portion of the city centre over the weekend as well as picketing government buildings. The protests are the largest against Chinese government control since Tiananmen Square 25 years ago; though riot police have now reportedly been withdrawn from the area, in earlier clashes with protestors the authorities used tear gas and pepper spray. Unsurprisingly, the protests have been having a significant effect on local markets – the Hang Seng closed down by 1.90% this morning.

Air France pilots have ended their strike, with pilots union SNPL stating that it was doing so to allow negotiations ‘to continue in a calmer climate.’ Air France shares are currently up by around 1.30% this morning, despite the union statement making it clear that negotiations are ongoing and no deal has yet been reached. The French government owns 16% of the airline.

Today’s Big Loser is Balfour Beatty, which is currently down by around 21% after releasing a fifth profit warning in a two year period. Executive Chairman Steve Marshall will step down from his role when a successor is found. Balfour Beatty notably rejected a series of takeover offers from rival firm Carillion just a couple of months ago.

The EU has stated that it will be conducting an in-depth investigation into Apple’s relationship with the Irish authorities, with initial reports claiming that the US firm benefited from illegal tax deals with Ireland for over 20 years; reports have stated that the subsequent fine could be in the billion. Apple is denying the claims, but is currently down by around 1.41% in pre-market trading.