Dominos starting to fall?
Yep, we've got a cartoon for that pic.twitter.com/abrYvescWa— Hedgeye (@Hedgeye) November 28, 2023
Financial contagion warning as HSBC is told to brace for ‘catastrophic’ £6.3billion hit
Bob Lyddon fears losses in Hong Kong and China could “blow a hole in the bank’s equity”.
HSBC is facing a “hit” of more than £6.3billion as a result of unsecured commercial property loans into China, a UK-based tax consultant has warned.
Bob Lyddon branded the situation a ‘disaster’ – and warned of a “financial contagion” risk which could have a knock-on effect on Britain’s economy.
HSBC earlier this month confirmed it was setting aside £910million to cover expected loan losses, including £412million related to the commercial real estate sector in China – but Mr Lyddon said the actual picture was much worse.
The founder of Lyddon Consulting Services outlined his concerns in an analysis specifically written for Express.co.uk – and has urged the bank not to underestimate the seriousness of the situation.
He explained: “HSBC’s stake in its Chinese bank – Hang Seng – looks overvalued by £3.3billion given the benchmark set by Standard Chartered.
Record holiday spending: good news, just one problem: consumers used buy-now-pay-later schemes to spend $7.3BN from Nov. 1 to Nov. 26, up 14% from a year ago, per Adobe
These are basically vendor/3rd party financing programs which don't show up on already maxed out credit cards pic.twitter.com/3wEngeDZSL
— zerohedge (@zerohedge) November 28, 2023
JUST IN: Jamie Dimon says the U.S is addicted to debt and it’s created a dangerous “sugar high” in the economy.
He points to the enormous surge of new debt taken on during the pandemic
He says that money is like "heroin" in the hands of consumers
"We're on this sugar high and… pic.twitter.com/k4vzQPQjL0
— Genevieve Roch-Decter, CFA (@GRDecter) November 28, 2023
BREAKING: 60% of Americans are living paycheck to paycheck heading into the holidays, per CNBC.
The ability of US households to cover an unexpected $2,000 expense is at the lowest level in a decade, the Federal Reserve Bank of New York has said.
— Win Smart, CFA (@WinfieldSmart) November 28, 2023
— Alex Joosten (@joosteninvestor) November 28, 2023
💶 Eurozone lending to companies -0.3% YoY.
Heading in #recession territory!
Chart: @DanielKral1 pic.twitter.com/imgNt6oYIz
— Alex Joosten (@joosteninvestor) November 28, 2023