Key Takeaways
- HSBC (HSBC) reported a 2025 pre-tax profit of $29.9 billion, beating analyst estimates of $28.86 billion despite a 7% year-on-year decline.
- Hong Kong plans to eliminate 10,000 civil service positions via a 2% annual reduction over the next two years to address a persistent fiscal deficit.
- BTIG lowered its price target for MercadoLibre (MELI) to $2,650, down from $2,750, while maintaining a positive long-term outlook on the Latin American e-commerce leader.
- Former Norwegian PM Thorbjørn Jagland was hospitalized following intense scrutiny and "gross corruption" charges linked to the disclosure of the Jeffrey Epstein files.
- Wellington Mayor Andrew Little performed a public swim to signal the safety of local waters following a catastrophic 70 million-liter sewage leak at the Moa Point treatment plant.
HSBC Holdings (HSBC) posted a $29.9 billion pre-tax profit for the full year 2025, a result that surpassed market expectations despite a 7% drop from the previous year’s $32.3 billion. The banking giant’s performance was bolstered by a strong wealth management division, which helped offset $1.1 billion in provisions related to long-standing Madoff fraud lawsuits and rising bad debt from the troubled Hong Kong commercial property market.
CEO Georges Elhedery emphasized a shift toward a "simpler, more agile" structure, targeting a 17% return on tangible equity for the 2026–2028 period. Investors reacted to the beat with cautious optimism, even as the bank suspended share buybacks for three quarters following its $14 billion acquisition of Hang Seng Bank.
In a move to restore fiscal discipline, the Hong Kong government announced a plan to reduce its civil service establishment by 2% annually over the next two financial years. Financial Secretary Paul Chan outlined the measure in the 2025-26 Budget, aiming to delete approximately 10,000 posts by April 2027 to help rein in a deficit estimated at HK$87.2 billion.
The reduction is part of a broader 7% cut in government expenditure intended to create a sustainable fiscal foundation. Officials stated that public service levels would be maintained through increased digital transformation and the streamlining of bureaucratic procedures.
BTIG adjusted its valuation for MercadoLibre (MELI), cutting the price target to $2,650 from a previous $2,750. Despite the reduction, the firm remains bullish on the company’s dominant position in the Latin American e-commerce and fintech sectors. Analysts noted that the adjustment reflects a recalibration of growth expectations amid shifting regional economic conditions.
In European political news, former Norwegian Prime Minister Thorbjørn Jagland has been admitted to the hospital due to stress-related complications following the release of the Epstein files. Jagland faces allegations of "gross corruption" involving undisclosed stays at Jeffrey Epstein’s properties in Paris and New York. The Norwegian economic crime authority, Økokrim, has already conducted searches of Jagland’s residences as part of a wider investigation into the nation's political elite.
In New Zealand, Wellington Mayor Andrew Little dived into the ocean at Island Bay to reassure the public after a massive infrastructure failure. A breakdown at the Moa Point wastewater treatment plant earlier this month resulted in 70 million liters of raw sewage flowing into the Cook Strait. While the mayor insisted monitoring results show low risk, residents remain vocal about the "environmental disaster" and the brown residue reportedly coating coastal homes.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.