{"id":61582,"date":"2026-05-05T00:38:27","date_gmt":"2026-05-05T04:38:27","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/"},"modified":"2026-05-05T00:38:27","modified_gmt":"2026-05-05T04:38:27","slug":"hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/","title":{"rendered":"HSBC Earnings Miss and LVMH Divestment Talks Lead Global Market Headlines"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#HSBC_Earnings_and_Market_Outlook\" >HSBC Earnings and Market Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#LVMH_Explores_Marc_Jacobs_Divestment\" >LVMH Explores Marc Jacobs Divestment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#Geopolitical_Tensions_and_Trade_Restrictions\" >Geopolitical Tensions and Trade Restrictions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#UK_Economic_and_Political_Shifts\" >UK Economic and Political Shifts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-earnings-miss-and-lvmh-divestment-talks-lead-global-market-headlines\/61582\/#Corporate_and_Analyst_Moves\" >Corporate and Analyst Moves<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>HSBC (<a href=\"\/stock\/HSBC\">HSBC<\/a>) reported a Q1 pretax profit of $9.38 billion, missing analyst estimates of $9.59 billion despite a revenue beat of $18.62 billion.<\/strong><\/li>\n<li><strong>LVMH (<a href=\"\/stock\/MC\">MC<\/a>) is reportedly exploring a sale of the Marc Jacobs brand for approximately $1 billion as part of a strategic portfolio streamlining.<\/strong><\/li>\n<li><strong>Geopolitical risks intensified following a fire on a South Korean vessel in the Strait of Hormuz, sparking investigations into a potential external attack.<\/strong><\/li>\n<li><strong>UK-US diplomatic relations faced friction as Chancellor Rachel Reeves criticized the &quot;folly&quot; of the ongoing Iran conflict in a row with the US Treasury Secretary.<\/strong><\/li>\n<li><strong>The European Union has officially banned Chinese inverters from publicly funded power projects, citing critical cybersecurity and grid dependency risks.<\/strong><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"HSBC_Earnings_and_Market_Outlook\"><\/span>HSBC Earnings and Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>HSBC (<a href=\"\/stock\/HSBC\">HSBC<\/a>) posted a first-quarter pretax profit of <strong>$9.38 billion<\/strong>, falling short of the <strong>$9.59 billion<\/strong> expected by analysts. While revenue exceeded forecasts at <strong>$18.62 billion<\/strong>, the bank was hit by <strong>$1.30 billion<\/strong> in expected credit losses (ECL) and rising operating expenses.<\/p>\n<p>Management warned of a potential <strong>mid-to-high single-digit percentage hit<\/strong> to 2026 profit before tax due to volatile macroeconomic conditions. Despite the profit miss, the bank declared a first interim dividend of <strong>$0.10 per share<\/strong> and maintained a <strong>CET1 ratio of 14%<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"LVMH_Explores_Marc_Jacobs_Divestment\"><\/span>LVMH Explores Marc Jacobs Divestment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Luxury conglomerate LVMH (<a href=\"\/stock\/MC\">MC<\/a>) is exploring the sale of its <strong>Marc Jacobs<\/strong> brand, with reports suggesting a potential valuation of <strong>$1 billion<\/strong>. The move follows a period of slowing demand in the luxury sector and a broader strategy by LVMH to offload smaller brands that do not align with its high-margin &quot;maison&quot; architecture.<\/p>\n<p>Potential suitors reportedly include brand management firms such as <strong>Authentic Brands Group<\/strong> and <strong>WHP Global<\/strong>. This divestment follows LVMH\u2019s recent exits from other labels like <strong>Off-White<\/strong> and <strong>Stella McCartney<\/strong> as it focuses on core assets like <strong>Louis Vuitton<\/strong> and <strong>Dior<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_and_Trade_Restrictions\"><\/span>Geopolitical Tensions and Trade Restrictions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A South Korean multipurpose carrier, the <strong>HMM Namu<\/strong>, was disabled by an explosion and fire while anchored near the <strong>Strait of Hormuz<\/strong>. While no casualties were reported among the 24 crew members, South Korean authorities are investigating whether the vessel was targeted by a <strong>drone or mine attack<\/strong> amid escalating regional conflict.<\/p>\n<p>In Europe, the <strong>European Commission<\/strong> has moved to ban <strong>Chinese inverters<\/strong> from all publicly funded projects connected to the European grid. Officials cited the risk of <strong>remote shutdowns<\/strong> and unauthorized data access, targeting high-risk suppliers in a market currently dominated by Chinese firms like <strong>Huawei<\/strong> and <strong>Sungrow<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"UK_Economic_and_Political_Shifts\"><\/span>UK Economic and Political Shifts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>UK Chancellor <strong>Rachel Reeves<\/strong> reportedly engaged in a heated exchange with US Treasury Secretary <strong>Scott Bessent<\/strong> over the economic fallout of the war with Iran. Reeves described the conflict as a <strong>&quot;folly&quot;<\/strong> without a clear exit plan, highlighting the &quot;economic pain&quot; being felt by British households due to soaring energy prices.<\/p>\n<p>Simultaneously, the UK is exploring joining the EU\u2019s <strong>\u20ac90 billion Ukraine loan<\/strong> program. This move is intended to allow British defense firms to tap into massive military orders, signaling a deepening of <strong>European defense integration<\/strong> in response to shifting US foreign policy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_and_Analyst_Moves\"><\/span>Corporate and Analyst Moves<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Deutsche Bank (<a href=\"\/stock\/DB\">DB<\/a>)<\/strong> issued a firm denial regarding reports that it trained bankers to manipulate markets, following renewed scrutiny of legacy trading practices.<\/li>\n<li><strong>CK Hutchison Holdings (<a href=\"\/stock\/0001.HK\">0001.HK<\/a>)<\/strong> announced that its appointed directors will resign from the <strong>Vodafone-Three<\/strong> board ahead of the anticipated merger completion.<\/li>\n<li><strong>Jefferies<\/strong> lowered its price target for <strong>Lancaster Colony Corporation (<a href=\"\/stock\/LANC\">LANC<\/a>)<\/strong> to <strong>$125<\/strong> from $165.<\/li>\n<li><strong>Stephens<\/strong> raised its target for <strong>Group 1 Automotive (<a href=\"\/stock\/GPI\">GPI<\/a>)<\/strong> to <strong>$393<\/strong>, while <strong>Needham<\/strong> lifted <strong>Axsome Therapeutics (<a href=\"\/stock\/AXSM\">AXSM<\/a>)<\/strong> to <strong>$267<\/strong>.<\/li>\n<li><strong>X (formerly Twitter)<\/strong> faced widespread login issues for its premium subscribers, adding to the platform&#39;s recent technical hurdles.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways HSBC (HSBC) reported a Q1 pretax profit of $9.38 billion, missing analyst estimates of $9.59 billion despite a 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