HSBC pronounces $3 billion share buyback after second-quarter revenue plunges 29%, lacking expectations
Europe’s largest lender HSBC on Wednesday missed second-quarter revenue expectations, totally on account of impairment prices, in response to the financial institution. The financial institution additionally introduced a share buyback of $3 billion.
It reported revenue earlier than tax for the three months ended June of $6.3 billion, down 29% from a 12 months in the past.
Listed here are HSBC’s second-quarter 2025 outcomes in contrast with consensus estimates compiled by the financial institution.
- Revenue earlier than tax: $6.3 billion vs. $6.99 billion
- Income: $16.5 billion vs. $16.67 billion
Working bills rose by 10% in comparison with the identical interval a 12 months in the past, and had been largely owed to restructuring and different associated prices in addition to from elevated spending and funding in know-how, the financial institution mentioned.
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—Lee Ying Shan
Customers and buyers are disenchanted with Li Auto’s new mannequin, say consultants
Li Auto’s shares plunging over 11% Wednesday is a mirrored image that buyers and buyers are disenchanted with the brand new fashions, trade consultants advised CNBC.
“The market response displays disappointment with the Li MEGA and now the Li L8 six-seat battery EV launches,” mentioned Invoice Russo, the founder and CEO of Automobility. Traders are questioning the corporate’s product technique and timing, significantly because the pure battery electrical section is turning into extremely aggressive and price-sensitive, he added.
Customers may additionally be disenchanted that the low-end i8 variant doesn’t have options typical of Li Auto vehicles like in-car fridge and huge cinema show, mentioned Eugene Hsiao, head of China fairness technique at Macquarie.
Hanyang Wang, an analyst at 86 Analysis, famous that Li Auto’s lack of disclosure of order quantity following the launch of the i8 may have additionally raised buyers’ considerations about inadequate demand for the mannequin.
“We suppose the underwhelming order efficiency of the i8 will put gross sales stress on Li Auto,” he advised CNBC.
— Lee Ying Shan
Li Auto shares plunge over 11% after debuting six-seat electrical SUV
Shares of Chinese language electrical automobile producer Li Auto fell over 11% after it launched a six-seat electrical automobile.
The Li i8 is obtainable in three variants — Professional, Max, and Extremely — priced at RMB321,800 ($44,838) RMB349,800, and RMB369,800, respectively. Buyer deliveries are set to start on Aug. 20, 2025.
—Lee Ying Shan
Australia’s second-quarter inflation drops to lowest since March 2021, supporting case for price lower
Australia’s headline inflation price within the second quarter of the 12 months slipped to its lowest level since March 2021, coming in at 2.1% 12 months over 12 months, in comparison with 2.4% within the previous interval.
This was decrease than the two.2% anticipated by economists polled by Reuters, and is nearly touching the decrease band of the two%-3% goal set by the Reserve Financial institution of Australia.
On a quarter-over-quarter foundation, inflation slowed to 0.7%, in comparison with 0.8% anticipated within the Reuters ballot and 0.9% within the first quarter.
The Australian Bureau of Statistics revealed that essentially the most important worth rises within the quarter had been seen in housing, meals and non-alcoholic drinks and well being, though a fall in transport prices partially offset the rise.
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— Lim Hui Jie
U.S.-China commerce talks finish with out extension of tariff truce, as Trump weighs choices
A possible extension of a tariff pause between the USA and China won’t be agreed to till President Donald Trump indicators off on the plan, U.S. negotiators mentioned Tuesday.
Trump “has remaining say on all of the commerce offers” and the pending tariff truce, Treasury Secretary Scott Bessent advised CNBC’s Eamon Javers.
The remarks got here after prime commerce officers for the 2 nations concluded talks in Stockholm, Sweden, their third spherical of high-level discussions since Could.
“We’ll head again to Washington, D.C. We’ll speak to the president about whether or not that is one thing that he needs so do,” U.S. Commerce Consultant Jamieson Greer advised reporters following the talks.
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— Kevin Breuninger
Singapore holds financial coverage, flags slowdown in second half of the 12 months
Singapore’s central financial institution warned that the city-state’s financial system is “projected to average within the second half of 2025 from its robust tempo in [the first half],” because it stored its financial coverage unchanged.
The Financial Authority of Singapore mentioned it might maintain the width and stage at which its coverage band is centered amid commerce considerations from the Trump administration.
“Particularly, the trade-related sectors ought to see some pullback,” the central financial institution mentioned in its financial coverage assertion on Wednesday.
“Prospects for the Singapore financial system stay topic to important uncertainty, particularly in 2026. Modifications in efficient tariff charges worldwide may influence the efficiency of Singapore’s externally-oriented sectors,” MAS added.
Monetary volatility and geopolitical shocks may deepen the influence of the worldwide slowdown and add stress on Singapore’s progress outlook, MAS mentioned.
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— Lim Hui Jie
Asia-Pacific markets open blended as U.S.-China commerce truce hangs in a limbo
Asia markets began the buying and selling day blended.
Japan’s benchmark Nikkei 225 was flat on the open, whereas the Topix inched increased 0.1%.
South Korea’s Kospi gained 0.48%, and the small-cap Kosdaq rose 0.42%.
Australia’s S&P/ASX 200 misplaced 0.19%.
— Lee Ying Shan
Opening calls
Completely satisfied mid-week from Singapore. Asia markets are poised for a decrease open.
Futures for Hong Kong’s Cling Seng Index stood at 25,344, pointing to a weaker open in contrast with the HSI’s final shut of 25,524.45
Equally, Australia’s S&P/ASX 200 was set to start out the day decrease with futures tied to the benchmark at 8,662, in contrast with its final shut of 8,704.6.
Japan’s benchmark Nikkei 225 was set to open decrease, with the futures contract in Osaka final traded at 40,650 in opposition to the index’s final shut of 40,674.55.
— Lee Ying Shan
Shares shut decrease on Tuesday
Shares closed decrease on Tuesday, as buyers flip their consideration to the Federal Reserve’s rate of interest resolution.
The S&P 500 slipped 0.30% to shut at 6,370.86, whereas the Nasdaq Composite misplaced 0.38% to 21,098.29. The Dow Jones Industrial Common slipped 204.57 factors, or 0.46%, to complete the session at 44,632.99.
— Brian Evans
Tariffs will nonetheless deal a blow to financial progress regardless of current progress, says UBS
Traders ought to stay vigilant and never look previous the potential dangers of tariffs, in response to UBS.
“The influence of tariffs cannot be neglected although current offers have offered larger readability. Whereas the 15% tariff price on most EU and Japanese items was decrease than earlier threats from the U.S., the upper levies will nonetheless create headwinds for progress,” mentioned Ulrike Hoffmann-Burchardi, chief funding officer for the Americas and world head of equities at UBS International Wealth Administration.
“Whereas our base case is that the resilience of the US shopper ought to assist the U.S. financial system keep away from recession, a larger-than-expected influence on inflation or extra extreme hit to company margins may rapidly change the present optimistic market narrative,” she added.
— Brian Evans