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by Mish

HSBC Holdings Plc, Europe’s largest bank, reported a surprise fourth-quarter pretax loss of $858 million.
The loss, announced by the London-based bank in a Hong Kong exchange statement on Monday, compared with the $1.95 billion profit forecast by the average of five analysts in a Bloomberg survey. Operating costs in the period amounted to $11.5 billion.
HSBC Chief Executive Officer Stuart Gulliver, 56, has been accelerating plans to scale back the lender’s vast global footprint, seeking to boost profitability and reverse a share slump this year. In June, the CEO unveiled a new strategy to boost investment in Asia, exit unprofitable countries and cut as many as 25,000 jobs to help save as much as $5 billion by the end of 2017.

HSBC Weekly Chart

Fancy that. It seems the stock market expected this surprise was coming long ago.

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The market is expecting lots more banking surprises. Here is one of them.

Deutsche Bank Weekly

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Expect more surprise so you won’t be surprised when the analysts are.

Mike “Mish” Shedlock