American Airlines lowered its 2026 earnings outlook, citing increased fuel costs that fares aren't fully offsetting, leading to an 8% share drop. The carrier also forecast a wider adjusted loss for the current quarter and revised its 2024 earnings guidance downward.
Hewlett Packard Enterprise (HPE) shares jumped nearly 25% after reporting a strong fiscal Q2, driven by data center demand for AI. The company significantly raised its full-year EPS outlook, leading to a lower P/E ratio despite the stock surge.
Long-term UK borrowing costs hit 28-year high on expectations of higher inflation, and speculation that local elections could prompt leadership challengeFull story: UK’s long-term borrowing costs hit highest level since 1998HSBC profits fall amid $400m fraud-related charge and Iran warAustralia hikes interest rates to 4.35% in blow to mortgage holdersThose credit losses have “overshadowed” HSBC’s results in the last quarter, reports Will Howlett, financials analyst at Quilter Cheviot:HSBC’s quarter was dominated by a sharp and unexpected jump in credit losses, which took the shine off otherwise solid trading and pushed profits just below expectations. A $400m fraud-related loss in the UK drove a marked rise in bad loan charges and has put fresh focus on the risks sitting within more complex lending, even as the rest of the loan book remains stable.Profits were broadly flat on last year, as higher income was absorbed by rising costs and credit charges. Revenues grew 4%, slightly ahead of expectations, helped mainly by fees rather than interest income. Wealth management continued to perform well, though growth has slowed from last year’s pace.“HSBC’s results always bring more of an international flavour than its UK peers. Unfortunately that means the Hormuz crisis looms large in the results, casting a shadow over an otherwise solid set of numbers.The theme is grimly familiar to investors; were it not for the crisis, earnings outlooks would be much rosier. The warnings around the economic impact will only continue to grow the longer the situation remains unresolved.” Continue reading...
Rolling coverage of the latest economic and financial newsHSBC profits fall amid $400m fraud-related charge and Iran warAustralia hikes interest rates to 4.35% in blow to mortgage holdersThose credit losses have “overshadowed” HSBC’s results in the last quarter, reports Will Howlett, financials analyst at Quilter Cheviot:HSBC’s quarter was dominated by a sharp and unexpected jump in credit losses, which took the shine off otherwise solid trading and pushed profits just below expectations. A $400m fraud-related loss in the UK drove a marked rise in bad loan charges and has put fresh focus on the risks sitting within more complex lending, even as the rest of the loan book remains stable.Profits were broadly flat on last year, as higher income was absorbed by rising costs and credit charges. Revenues grew 4%, slightly ahead of expectations, helped mainly by fees rather than interest income. Wealth management continued to perform well, though growth has slowed from last year’s pace.“HSBC’s results always bring more of an international flavour than its UK peers. Unfortunately that means the Hormuz crisis looms large in the results, casting a shadow over an otherwise solid set of numbers.The theme is grimly familiar to investors; were it not for the crisis, earnings outlooks would be much rosier. The warnings around the economic impact will only continue to grow the longer the situation remains unresolved.” Continue reading...
Rolling coverage of the latest economic and financial newsHSBC profits fall amid $400m fraud-related charge and Iran warAustralia hikes interest rates to 4.35% in blow to mortgage holdersThose credit losses have “overshadowed” HSBC’s results in the last quarter, reports Will Howlett, financials analyst at Quilter Cheviot:HSBC’s quarter was dominated by a sharp and unexpected jump in credit losses, which took the shine off otherwise solid trading and pushed profits just below expectations. A $400m fraud-related loss in the UK drove a marked rise in bad loan charges and has put fresh focus on the risks sitting within more complex lending, even as the rest of the loan book remains stable.Profits were broadly flat on last year, as higher income was absorbed by rising costs and credit charges. Revenues grew 4%, slightly ahead of expectations, helped mainly by fees rather than interest income. Wealth management continued to perform well, though growth has slowed from last year’s pace.“HSBC’s results always bring more of an international flavour than its UK peers. Unfortunately that means the Hormuz crisis looms large in the results, casting a shadow over an otherwise solid set of numbers.The theme is grimly familiar to investors; were it not for the crisis, earnings outlooks would be much rosier. The warnings around the economic impact will only continue to grow the longer the situation remains unresolved.” Continue reading...
United Airlines cut its 2026 earnings forecast to $7-$11 per share from $12-$14, citing higher jet fuel costs from the Iran war. CEO Scott Kirby said demand remains strong, with Q1 revenue rising 10% to $14.61B and EPS at $1.19. The carrier is trimming capacity to offset fuel costs, with Q2 fuel prices expected at $4.30/gallon.
South Korean stocks reached a new record high with the KOSPI closing above 6,400 at 6,417.93, up 0.46 percent, as strong corporate earnings outlook outweighed uncertainty from U.S.-Iran peace talks. Individual investors led the rally with net purchases of 1.24 trillion won, while foreigners and institutions sold. Battery and electronics components shares surged on expected strong Q1 earnings, though semiconductor giants Samsung Electronics and SK hynix declined.
United Airlines has significantly reduced its 2026 earnings guidance, lowering the forecast to $7-$11 per share from $12-$14, citing surging jet fuel costs linked to the Middle East conflict. The carrier reported Q1 earnings of $1.19 per share adjusted, beating analyst expectations of $1.07, with revenue rising 10% year-over-year to $14.61 billion. Fuel prices have tripled from February levels, prompting capacity cuts and fare increases across the industry.
