A busy global news cycle is unfolding across markets, geopolitics, and corporate earnings this morning.
Amazon is preparing what could be its largest-ever round of layoffs. Trump met Japan’s new prime minister in Tokyo for high-stakes talks.
HSBC reported softer quarterly profits amid a major legal hit, and Asian stocks cooled from record highs as investors brace for central bank decisions and fresh signals from Washington and Beijing.
A glance at the major developments this morning.
Amazon’s biggest layoffs
Amazon is about to carry out what could be the biggest round of corporate layoffs in its history, starting as soon as Tuesday.
The company is expected to cut up to 30,000 corporate roles, which amounts to roughly 10% of its white-collar staff of 350,000.
The cuts won’t be limited to one corner of the business. Teams across HR, operations, its devices and services units, and even Amazon Web Services are expected to feel the impact.
Ahead of the announcement, managers were reportedly briefed on how to communicate the news to their teams.
Amazon’s leadership is framing the move as part of a larger cost-cutting strategy, a correction after what they see as pandemic-era overhiring.
The company has also been leaning heavily into automation initiatives under CEO Andy Jassy, and some of those efficiency pushes are believed to be driving these job reductions as well.
Trump meets Japan PM
US President Donald Trump met with Japan’s new Prime Minister, Sanae Takaichi, in Tokyo for their first round of high-level talks.
The discussion centered on trade, defense, and how the two countries can work more closely in the region.
During the meeting, the two leaders signed a new framework aimed at securing access to critical minerals and rare earth materials, a move meant to stabilize supply chains as China tightens its export rules.
Takaichi, who has made history as Japan’s first female prime minister, told Trump she plans to raise Japan’s defense spending to 2% of GDP.
She also laid out a sweeping $550 billion investment package that includes deals tied to U.S. shipbuilding, soybeans, and natural gas.
In a notable gesture, she also said she intends to nominate Trump for the Nobel Peace Prize.
HSBC Q3 earnings
HSBC posted a profit before tax of $7.3 billion for the third quarter of 2025, about $1.2 billion less than the same period last year.
A big chunk of that drop came from a $1.1 billion provision tied to litigation related to the Madoff case.
On the upside, revenue for the quarter climbed 5% to $17.8 billion, thanks to solid results from its Wealth business and Commercial Banking.
That growth helped offset rising costs from tech investments and inflation.
The bank’s net interest margin landed at 1.57%, and its core capital ratio (CET1) remained strong at 14.5%.
Despite the legal hit, HSBC’s board kept the interim dividend unchanged and reiterated its commitment to returning capital to shareholders.
Analysts generally viewed the results as a sign of resilience given the legal overhang and choppy market conditions.
Asian markets slip
Asian markets pulled back on Tuesday after recently hitting record highs, as traders digested US President Trump’s meeting with Japan’s new Prime Minister Sanae Takaichi and looked ahead to major central bank decisions.
Japan’s Nikkei 225 slipped about 0.57%, South Korea’s Kospi dropped 1.4%, while Hang Seng futures were just slightly above their previous close.
Mainland China was the bright spot as the Shanghai Composite climbed to a decade high, fueled by optimism that US–China trade talks could resume later this week.
Investors are keeping a close eye on a few big moving pieces now: earnings from major tech firms, the next signals from the Federal Reserve on interest rates, and any concrete outcomes from Trump’s diplomatic push in the region.
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