HSBC Holdings Plc has announced a new $3 billion share buyback plan for the first half of 2025, even as it reported a decline in profits and revenue during the first quarter of the year. The move comes amid global economic uncertainty and geopolitical tensions, which the bank says are weighing on business sentiment and financial forecasts.

Europe’s largest bank posted a pre-tax profit of $9.5 billion for the first quarter, down 25% from the same period last year, although the figure still beat analysts’ expectations of $7.8 billion. Revenue for the quarter fell 26% to $17.6 billion. Despite the decline, HSBC shares rose 2.28% by mid-morning trading in London.

The bank attributed the earnings performance to a solid showing from its International Wealth and Premier Banking division, particularly in Hong Kong, as well as strong results in its foreign exchange operations. An interim dividend of $0.10 per share was also approved by the board.

CEO Georges Elhedery, who took the helm in September, said the results reflect “momentum in our earnings, discipline in the execution of our strategy and confidence in our ability to deliver our targets.” He added that the bank remains focused on supporting customers through ongoing economic challenges.

HSBC is in the midst of a significant restructuring aimed at simplifying its operations and cutting costs. Last year, it announced plans to merge its commercial and investment banking divisions. The reorganisation splits its business into two main regions: “Eastern Markets,” which includes Asia-Pacific and the Middle East, and “Western Markets,” covering the UK, Europe, and North America. The bank expects $300 million in cost savings this year, though restructuring costs could reach $1.8 billion over 2025 and 2026.

The bank also warned that economic uncertainty—particularly from protectionist trade policies—is creating volatility in financial markets. HSBC said the ongoing trade tensions between the U.S. and China, its largest market, pose a significant risk. The bank’s stock took a sharp hit after former President Trump announced new tariffs in early April but has since recovered amid a broader market rebound.

Looking ahead, HSBC anticipates continued muted demand for lending and expects a low single-digit percentage hit to group revenue. It also forecasts $500 million in additional expected credit losses tied to downside economic scenarios.

Nonetheless, the bank remains optimistic over the long term, projecting mid-single-digit growth and double-digit gains in its Wealth division over the coming years.

Swiss pharmaceutical giant Novartis reported stronger-than-expected earnings for the first quarter of 2025, buoyed by robust sales of key medicines and rising global demand. The company also raised its full-year guidance, signaling continued confidence in its product pipeline and market performance.

In the three months ending March 31, Novartis reported net sales of $13.2 billion, a 15% increase on a constant currency basis. The figure surpassed analyst expectations, which were estimated at $13.12 billion. Core operating income rose 23% to $5.6 billion, while core net income jumped 22% to $4.5 billion.

Following the strong quarterly performance, Novartis updated its full-year forecast. The company now expects sales to grow by high-single digits and core operating income to increase by low double-digits, narrowing and improving on its previous guidance issued in January.

Sales growth was largely driven by a strong performance across several flagship therapies. Breast cancer drug Kisqali recorded a 56% surge in revenue, reaching $956 million. Entresto, a treatment for heart failure, rose 22% to approximately $2.3 billion, while arthritis medication Cosentyx saw an 18% increase, bringing in around $1.5 billion.

Chief Executive Vas Narasimhan also highlighted progress on the innovation front, citing regulatory approvals for several new drugs. These include Pluvicto for prostate cancer in a pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3 glomerulopathy (C3G). “We remain focused on advancing our leading pipeline and confident in achieving our growth outlook,” Narasimhan stated in the earnings release.

The company is also navigating shifting regulatory and trade dynamics in the United States. A recent White House-initiated national security review of the pharmaceutical sector has raised questions about potential tariffs. While pharmaceuticals are currently exempt from proposed “reciprocal” tariffs, former President Donald Trump has floated a 25% import levy on medicines.

In response, Novartis recently announced a $23 billion investment plan in the U.S. over the next five years. The initiative includes the construction and expansion of 10 manufacturing facilities, with the goal of ensuring all medications for U.S. patients are produced domestically.

Novartis’s performance and expansion plans underscore the company’s strategic focus on growth through innovation and localized production amid global uncertainty.

Gold prices plunged last week from record highs as easing tensions between the United States and China triggered a broad rally in global stock markets, dampening demand for traditional safe-haven assets.

Spot gold and gold futures both fell about 6.5% from their peaks reached last Tuesday. The retreat followed U.S. President Donald Trump’s softened stance on tariffs against China, which reassured investors and reduced the urgency to seek shelter in gold. Analysts, however, believe that while gold may face short-term pressure, the broader outlook remains positive given persistent global uncertainties.

According to Barclays Plc strategists, gold’s surge had moved ahead of its fundamental drivers and showed signs of being technically overstretched. Hedge funds have also pared back their long positions in gold futures and options to the lowest levels in over a year, Bloomberg reported, further weighing on prices.

“This could suggest more downside being on the cards for the yellow metal, which may well be exacerbated by some weaker longs bailing out of what has become an incredibly crowded trade,” said Michael Brown, senior research strategist at Pepperstone. Brown noted that buying interest, particularly from Asia, has noticeably dried up.

Despite the recent pullback, gold has had an impressive run in 2025, rising more than 25% so far this year. Much of the rally has been fueled by economic uncertainty and the strength of the euro, which has pressured the U.S. dollar. The EUR/USD pair has surged 11% since February, making gold cheaper for European investors and boosting demand. European gold ETF purchases totaled $1 billion (€0.88 billion) in March, the World Gold Council reported, making the region the second-largest gold buyer globally.

In the near term, several factors could continue to weigh on gold prices. Fading risk-off sentiment, technical overbought signals, reduced liquidity, and slower central bank buying could all contribute to further declines. Moreover, inflationary concerns linked to tariffs may prompt central banks to reconsider aggressive interest rate cuts, tightening monetary conditions that have previously supported gold.

Nonetheless, many analysts maintain a bullish long-term view. “Still, given all the uncertainty and tumult elsewhere, gold still looks like a better bet as a haven than pretty much anything else,” Brown added.

While short-term volatility remains, gold’s traditional role as a safe-haven asset in times of geopolitical and economic instability suggests that it could resume its upward trajectory later this year.