Tue close: Greek plan fails to impress

Greece presented a new proposal to end the long-running credit saga but it failed to impress investors who saw it as little more than an attempt to buy time.

The delays merely dampened any enthusiasm on European markets. The FTSE100  ended the day down by 36.96 points or 0.54% to 6,753.08 points after hitting an intra-day low at 6,736.88.

The DAX is now 10% off its April high and Wall St was trying to end a three-day losing streak.

The second estimate of first quarter Eurozone GDP revealed a 1% year-on-year gain and a 0.4% quarter-on-quarter rise, unchanged from the previous quarter’s reading.

HSBC announced a round of job cuts and branch closures with the aim of saving between $4.5bn to $5bn in annual costs by 2017.  Globally between 22,000 and 25,000 jobs are set to go. In a research report Goldman Sachs said the lender’s dividend was now safer following the reduction to the bank’s target for RWA.

Kier Group has completed its acquisition of Mouchel, which is the leading provider of repair and maintenance services to the UK strategic road network. The FTSE 250 made the acquisition to accelerate its plans for growth in the infrastructure sector and will now be able to capitalise on the £17bn of investment in the strategic road network that is to be delivered through Highways England over the next five years.

RPC Group posted a 33% rise in full-year adjusted pre-tax profit to £119m from £89.5m, as the business performed well and the company made progress in implementing its Vision 2020 growth strategy. Revenue was up 17% at £1.22m from £1.05m and the company recommended a final dividend of 11p, giving a total dividend for the year of 15.4p, marking a 12% increase from last year.

Mobile takeaway food company Just Eat completed the open offer and placing of shares, raising £445m. A total of 43.56m new shares were issued under an open offer, with a further 61.83m placed. The proceeds will be used to finance the company’s proposed acquisition of Menulog Group, which is expected to complete this month.

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