Shares of HSBC Holdings (HSBC, 0005.HK) are moving lower Wednesday morning as the universal bank took a $3 billion hit from its operations in China, taking its quarterly profit down 80%. In addition, the company's guidance raised concerns with some analysts who called it unclear. Yahoo Finance Anchors Brad Smith and Seana Smith break down the latest development for HSBC and what it could mean for the company moving forward. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino
Shares of HSBC Holdings (HSBC, 0005.HK) are moving lower Wednesday morning as the universal bank took a $3 billion hit from its operations in China, taking its quarterly profit down 80%. In addition, the company's guidance raised concerns with some analysts who called it unclear.
Yahoo Finance Anchors Brad Smith and Seana Smith break down the latest development for HSBC and what it could mean for the company moving forward.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
The Wall Street Journal
Global banking giant HSBC wrote down its stake in a large Chinese bank, leading to a [$153 million loss](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-earnings-02-21-2024/card/heard-on-the-street-hsbc-gets-even-more-confusing-g64lckyh7rgpaKDU1tJD) for the last quarter. The bank trimmed $3 billion off its valuation of a 19% stake in Bank of Communications, whose market value is still well below the global bank’s estimate. How to value the BoCom stake has [long been a headache for HSBC](https://www.wsj.com/finance/banking/the-big-bank-with-a-15-billion-conundrum-in-china-8bd25531), which says it remains committed to mainland China.
The Wall Street Journal
One charge often leveled against HSBC is that its universal-bank operations, which are spread across the U.K., Asia and Latin America, are too complex to understand. Its latest financial results could make that accusation stick. Shares in the London-headquartered lender fell more than 8% today after [it announced](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-earnings-02-21-2024/card/hsbc-shares-tumble-after-quarterly-loss-ntlqnT1StqS732lXiKHk) an 80% drop in pretax profit in the final quarter of 2023 relative to a year earlier.
Bloomberg
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Barrons.com
A plunge in HSBC shares after disappointing results from the bank weighed on London’s benchmark stock index on Wednesday, as European equities more broadly drifted higher ahead of a key day for the U.S. stock market. HSBC’s London-listed shares tumbled 7.5% after the bank’s results revealed a big hit to its China business, weighing on the FTSE 100 index, which fell 0.8%.
Reuters
The World Bank warned that high borrowing costs have "changed dramatically" the need for developing nations to boost sluggish economic growth. The multilateral lender's latest warning comes as international bond sales from emerging market governments hit an all-time record of $47 billion in January, led by less risky emerging economies such as Saudi Arabia, Mexico and Romania. Kose added that faster growth, especially a real growth rate higher than the real cost of borrowing, could prove elusive.
Reuters
Morgan Stanley used an "unrealistic" and "inappropriate" near $1.0 billion margin call to force trades held by retail tycoon Mike Ashley's Frasers group off its books partly out of snobbery, London's High Court was told on Wednesday. The two-week trial pitches Ashley, a British businessman whose fortune is estimated by Forbes to be worth $5.2 billion, against an investment bank heavyweight that spurned him as a customer three years ago. Ashley had been seen as an "upstart", who would have "zero respect to the norms of the way in which we do business," Frasers quoted bank staff as saying in court filings.
The Wall Street Journal
Nvidia shares fell in early trading ahead of the chip company’s quarterly results, due after the closing bell. Investors will scrutinize the numbers for signs that the enthusiasm for artificial-intelligence stocks, which has been a powerful driver of the market in recent months, can continue.
Investor's Business Daily
Crispr Therapeutics reported its first profit in 10 quarters on Wednesday, and CRSP stock popped before sinking into the red. This is the company's first earnings report following the historic approval of Casgevy, its gene-edited treatment for sickle cell disease and beta thalassemia. During the quarter ended Dec. 31, Crispr earned $1.10 per share, flipping from a year-earlier loss of $1.41.
Bloomberg
(Bloomberg) -- As Russia’s war in Ukraine enters a third year, President Vladimir Putin’s forces have shifted to the offensive and captured the eastern city of Avdiivka after months of fighting. In a conflict where momentum has ebbed and flowed, the mood is now noticeably darker in Kyiv.President Volodymyr Zelenskiy changed his military leadership amid disputes over conscription of new soldiers and battlefield strategy. His troops are running low on ammunition and weapons, with political infight
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