>> Positive draws not just on HSBC's lion statue, it's the
and key to the banks and soaring share price, Monday. City parlance for when revenues are rising faster than costs. A good thing and what the bank now expects for 2018. HSBC profit up by more than a quarter to almost $6 billion for the latest quarter, its shares up around 5% on the news.
The bank may also owe a big thank-you to this man, US Federal Reserve Chairman Jerome Powell. Reuters' banking correspondent Lawrence White explains.>> So the good news for HSBC investors is they seem to be managing that balance between going back to growth mode while keeping a grip on costs.
But what's really driving profit is sort of outside the bank's control. It's US interest rates. So every time the Fed hikes the rate by 25 basis points, that's $800 million in revenue for HSBC. So all they've got to try and do is keep hold of their costs and wait for rates to go up.
They should benefit. Seemingly cloudless skies over the bank, HSBC says Brexiters, having no impact to speak of. It's also calm about a mounting US, China trade war. Surprising, perhaps.>> So it's important to remember while HSBC is based here in London, it actually makes three-quarters of its profits out in Asia, especially in Hong Kong.
>> Chief executive John Flint says a trade war could be a worry, but there’s no real impact yet. He’s still planning to pour billions into this place, China’s pearl river delta, home to 11 booming industrial cities. Investors seem to think the sun is shining on his strategy.