FTSE set for higher open HSBC revamp in focus
Fiona Cincotta October 27, 2020 6:42 PM
Whilst stocks on Wall Street saw their worst session in a month, European bourses are pointing to a mildly stronger start.
Whilst stocks on Wall Street saw their worst session in a month, European bourses are pointing to a mildly stronger start. Upbeat Chinese data is managing to distract investors, at least for now, even as covid cases continue to surge across the US and Europe and in the absence of additional fiscal stimulus from the US.
Banks will be in focus after HSBC reported a less than feared 35% decline in quarterly profits amid an easing in bad loan provisions and an improvement in the outlook for its main markets. HSBC also announce significant changes to its business, including moving away from net interest income as a main source of income towards a fee based focused business, whilst also accelerating plans to reduce the bank’s size and slash costs. This marks a huge shift in strategy but one that make absolute sense given the rock bottom interest rates that have dominated the banking scene for years and are look set to stay for the foreseeable future.
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