HSBC announces $3 billion share buyback after second-quarter profit plunges 29%, missing expectations
Europe’s largest lender HSBC on Wednesday missed second-quarter profit expectations, mostly on account of impairment charges, according to the bank. The bank also announced a share buyback of $3 billion.
It reported profit before tax for the three months ended June of $6.3 billion, down 29% from a year ago.
Here are HSBC’s second-quarter 2025 results compared with consensus estimates compiled by the bank.
- Profit before tax: $6.3 billion vs. $6.99 billion
- Revenue: $16.5 billion vs. $16.67 billion
Operating expenses rose by 10% compared to the same period a year ago, and were largely owed to restructuring and other related costs as well as from increased spending and investment in technology, the bank said.
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—Lee Ying Shan
Consumers and investors are disappointed with Li Auto’s new model, say experts
Li Auto’s shares plunging over 11% Wednesday is a reflection that consumers and investors are disappointed with the new models, industry experts told CNBC.
“The market reaction reflects disappointment with the Li MEGA and now the Li L8 six-seat battery EV launches,” said Bill Russo, the founder and CEO of Automobility. Investors are questioning the company’s product strategy and timing, particularly as the pure battery electric segment is becoming highly competitive and price-sensitive, he added.
Consumers may also be disappointed that the low-end i8 variant does not have features typical of Li Auto cars like in-car refrigerator and large cinema display, said Eugene Hsiao, head of China equity strategy at Macquarie.
Hanyang Wang, an analyst at 86 Research, noted that Li Auto’s lack of disclosure of order volume following the launch of the i8 could have also raised investors’ concerns about insufficient demand for the model.
“We think the underwhelming order performance of the i8 will put sales pressure on Li Auto,” he told CNBC.
— Lee Ying Shan
Li Auto stocks plunge over 11% after debuting six-seat electric SUV
Stocks of Chinese electric vehicle manufacturer Li Auto fell over 11% after it launched a six-seat electric vehicle.
The Li i8 is available in three variants — Pro, Max, and Ultra — priced at RMB321,800 ($44,838) RMB349,800, and RMB369,800, respectively. Customer deliveries are set to begin on Aug. 20, 2025.
—Lee Ying Shan
Australia’s second-quarter inflation drops to lowest since March 2021, supporting case for rate cut
Australia’s headline inflation rate in the second quarter of the year slipped to its lowest point since March 2021, coming in at 2.1% year over year, compared to 2.4% in the preceding period.
This was lower than the 2.2% expected by economists polled by Reuters, and is almost touching the lower band of the 2%-3% target set by the Reserve Bank of Australia.
On a quarter-over-quarter basis, inflation slowed to 0.7%, compared to 0.8% expected in the Reuters poll and 0.9% in the first quarter.
The Australian Bureau of Statistics revealed that the most significant price rises in the quarter were seen in housing, food and non-alcoholic beverages and health, although a fall in transport costs partially offset the rise.
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— Lim Hui Jie
U.S.-China trade talks end without extension of tariff truce, as Trump weighs options
A potential extension of a tariff pause between the United States and China will not be agreed to until President Donald Trump signs off on the plan, U.S. negotiators said Tuesday.
Trump “has final say on all the trade deals” and the pending tariff truce, Treasury Secretary Scott Bessent told CNBC’s Eamon Javers.
The remarks came after top trade officials for the two countries concluded talks in Stockholm, Sweden, their third round of high-level discussions since May.
“We’re going to head back to Washington, D.C. We’re going to talk to the president about whether that’s something that he wants so do,” U.S. Trade Representative Jamieson Greer told reporters following the talks.
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— Kevin Breuninger
Singapore holds monetary policy, flags slowdown in second half of the year
Singapore’s central bank warned that the city-state’s economy is “projected to moderate in the second half of 2025 from its strong pace in [the first half],” as it kept its monetary policy unchanged.
The Monetary Authority of Singapore said it would hold the width and level at which its policy band is centered amid trade concerns from the Trump administration.
“In particular, the trade-related sectors should see some pullback,” the central bank said in its monetary policy statement on Wednesday.
“Prospects for the Singapore economy remain subject to significant uncertainty, especially in 2026. Changes in effective tariff rates worldwide could…
Read More: Australia CPI, MAS policy statement