Beijing (CNN) Once U.S. President Obama announced the bipartisan debt deal Sunday, investors in Asia breathed a sigh of relief. Tokyo led the region's markets higher as the U.S. dollar strengthened against the Japanese yen.
Policymakers such as Japanese Chief Cabinet Secretary Yukio Edano welcomed the news, saying the last minute agreement would "lead to the stabilisation of the markets" because it helped the U.S. avoid default on August 2.
Hong Kong, China (CNN) – Cut cost, boost revenue. From global businesses to national governments across Europe and North America, this seems to be the monetary mantra of 2011. For HSBC, one of the world’s largest banks, it’s no different.
Today, HSBC confirmed the first steps of its Great Realignment around the world. To cut costs, an eye-popping 25,000 employees will lose their jobs between now and 2013. To boost revenue, retail banking will be scaled down while more lucrative corporate banking will be scaled up.
Right after the plan was unveiled late Monday in Hong Kong, HSBC’s London share price popped 4.5% in early trade. The company’s better-than-expected first half earnings likely supported that as well. The data, also out today, showed HSBC’s earnings for the six months to June came in at $11.5 billion – 3% up from the first half of 2011 and 45% up from the second half of 2010. Analysts had expected pre-tax profits of $600 million less. The world’s local bank needs more good news like this.
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