In tonight’s news (starting at 7pm)…
Budget 2025: Here’s an overview of revenues, spending, tax reductions and public debt for the year ahead…
Photo: Premier David Burt & Government Members are joined by public school students ahead of the budget statement
The era of budget deficits has come to an end.
So declared Premier and Finance Minister David Burt, as he presented Government’s fiscal plans for the year ahead…
“This is the eighth Budget of this PLP Government since returning to office in 2017, and through hurricanes, economic headwinds, and a once-in-a-century pandemic, this Government has stayed true to its mission: fairness, opportunity, and dignity for all Bermudians.”
Government is projecting more than a $43 million surplus in the fiscal year from April 2025 to the end of March 2026, with projected Government revenues of $1.43 billion.
That’s a near $180 million revenue boost on the previous year, largely driven by projected Corporate Income Tax revenues.
This comes as revised figures show a $19.7 million surplus for the last budget year…
“This surplus is $19.5 million more than originally estimated and represents the first Consolidated Fund surplus to have been achieved in 21 years.”
Most of the previous year’s boost came from payroll – up $26 million on original estimates – driven by local job growth and higher salaries in the international business sector, the Premier says.
Turning to this financial year, Corporate Income Tax revenues are expected to come in at the previously touted figure of $187.5 million.
This projected windfall enables a $56.2 million investment in healthcare, and compensates for any lost Government revenues from implementing some of the cost-of-living reductions heralded in the Pre-Budget Report…
“The Government will reduce the customs duty rate on all building materials and supplies currently charged above 10%…
Two years ago, the fuel duty on fuel used to generate electricity stood at 20 cents per litre… With this Budget we will reduce that tax to just 4 cents per litre…
Customs duty will be eliminated on all motor vehicle parts imported into Bermuda…
Government will reduce the monthly tax on mobile phones by 50%, from $12 to $6.”
While these reductions will come into effect on July 1st, as previously reported other reductions will be delayed.
A reduction to the base rate of land tax from $300 per year to $150 will not take effect until January 1st 2026… and a 10% reduction in Licensing Fees for Private Cars will not start until the next fiscal year on 1st of April 2026.
With the increased revenues, Government plans to spend more than 1.11-billion, a 118 million increase on last year’s expenditure.
Nearly half of that is the aforementioned $56.2 million on healthcare, and also includes an additional $18 million-plus across Government ministries… continued social investment of $14.9 million… and new wage, salary and benefit agreements with the public sector totalling around $26 million.
$149.8 million will go on capital expenditure…
“The most significant items of capital development in this Budget include road works and the installation of a new asphalt plant, investments in affordable housing, upgrades to the Tynes Bay Waste Treatment Facility, capital investments for the Hospital, and the commencement of the replacement of Swing Bridge.”
Government’s budget surplus, spending and cost-of-living provisions have not come without an impact on our debt.
Gross debt has been reduced over the past couple of years by paying off of a 50-million loan with sinking fund monies.
However, our net debt – that is, our debt measured against our reserves – has increased substantially.
After borrowed monies in the sinking fund covered budget deficits in 2023 and 2023, Government changed the law last year so that such borrowed monies could shore up other public funds.
By March this year, the sinking fund figure had been revised to less than $40 million, a reduction of $180 million over two fiscal years.
All the same, the Premier expects to pay off half a million of our debt next year – presumably due to the expected Corporate Income Tax revenues…
“…during Fiscal Year 2026/27, the Government expects to have sufficient reserves to repay at least $500 million of Government debt, thereby reducing the Government’s gross debt by $500 million, ending the year with net debt of $2.8 billion.”
The Premier said the Corporate Income Tax Agency has been given an operational grant of $4.78 million, with the long-term plan for it become self funding through future CIT revenues.
Meanwhile, the Tax Reform Commission is expected to deliver its recommendations on managing the new tax environment in June 2025.
Over $56 million will be allocated to fund the implementation of Universal Health Care and capital upgrades to improve the health system to come in 2025/26
King Edward VII Memorial Hospital, Paget. Photo: Bermuda Broadcasting
The spotlight on new investment in health care as part of the 2025/26 fiscal year Budget Presentation.
Premier and Finance Minister David Burt’s government has pledged a large sum of funds plus capital upgrades to improve the health system as global medical inflation is likely to top 10%.
Jasmine Patterson has the details.
Shadow NatSec Minister Robert King urges community to help prevent further violence
Robert King, Shadow Minister for National Security, released the following statement in the wake of a shooting at Legends bar in Somerset that claimed two lives and injured three others.
Bermuda woke up this morning to the horrific news headline: “Double Murder in Somerset.”
This was not just a crime — it was a coordinated, public attack that has left an entire community in shock. Two dead. Three others injured. Multiple suspects. Yet once again, we are met with horror followed by hesitation. What happened last night was brazen and deeply disturbing — and it highlights the worsening security crisis that Bermuda can no longer afford to ignore.
There are no winners when violence is seen as the only answer. There will only be more suffering unless the community comes together and demonstrates that it will not accept the loss of life from bladed weapons and guns.
Bermuda is 21 square miles and some people know why this happened. Some people know who did this. The police can only do so much and need the support of the community and for people to have the courage to stand up and say “enough is enough.” The “snitches get stitches” mindset cannot continue to be the way we do things because it makes murder possible.
I implore all Bermudians to stand together and fight to preserve the life of our youth. Our community must work together to prevent these behaviors. We must cooperate with the authorities, the courts and helping services, all working together to address risk and provide appropriate treatment and interventions.
This will not be easy but it will hurt less when we don’t have to attend another young person’s funeral or seeing another go to prison for twenty years. I commend the officers who responded swiftly and the Serious Crime Unit now working to identify those responsible for these murders.
I extend my deepest and most heartfelt condolences to the families and friends of the two individuals whose lives were taken in last night’s mass shooting at Legends Bar. My thoughts are also with the two others who were injured, and I pray for their full recovery.
Too many families have suffered from decades of gun violence and murders.
If you see something say something, no matter how insignificant it may seem. Safeguarding the community depends on it.
If you know something, please reach out to the Police Serivce on 295 0011 or Crimestoppers on 800 8477.
I also urge families affected to reach out to local counselling serivces for support.
The Gina Spence Program: 296 0016
The Family Centre: 232 1116
Milestones: 295 7766
Solstice Bermuda: 292 3456
Authorities appeal for information after ‘indiscriminate’ gunfire kills two, injures three
The Somerset community is reeling after gunfire erupted at Legends bar, killing a 33-year-old woman and a 29-year-old man, and injuring three others.
The victims have yet to be named.
According to police, four individuals on motorcycles arrived at the bar around 10:30 pm last night and opened fire inside, where 14 patrons were socialising.
Of the three injured survivors, one has been discharged from hospital, and the others suffered non-life threatening injuries but one is said to be more critical.
Police believe it was a targeted attack, but say shots were fired “indiscriminately” at customers.
Detective Chief Inspector Jason Smith of the Serious Crime Unit confirmed they’re searching for four male suspects.
“We believe that those men were two up on a motorcycle that travelled to the Legends Sports Bar and they departed on the same motorcycles and they headed in what we believe is a westerly direction,” said DCI Smith. “This particular incident is disturbing to us because shots were fired, what we believe were indiscriminately at those inside of the club.”
He continued, “We do know and there is some information that is coming to our attention that these particular motorcycles were circling the western area, somewhere in the region of about 10 pm that night so if you were out and about and you saw a bike that driving around the Somerset area somewhat suspicious, something that raised your alarm bells – those are critical to our lines of inquiry.”
Commissioner of Police Darrin Simons said the Forensic Support Unit recovered several shell casings from the scene, and the digital forensics team is reviewing CCTV, which has produced “valuable leads.”
However, police continue to appeal for more information.
“This senseless violence tears at the fabric of our community and our way of life,” said Commissioner Simons. “I want to assure you that we’ve deployed all available resources to this investigation to bring calm. Somerset, you are a tight-knit community – you know each other and you look after each other – and I’m specifically asking you to help us bring justice to those taken far too soon.”
Commissioner Simons said family liaison officers have been assigned to support the victims’ loved ones.
He assured the public that efforts are underway to prevent further violence, noting that a “reassuring” police presence will be visible in the west end as search teams pursue leads and patrols use stop-and-search powers.
“All the indications point that this is a targeted attack,” Commissioner Simons stated. “These things don’t happen randomly, right? So, there’s tensions that give rise to that and I just want to reassure the community that this just isn’t a random incident and that there’s sources of tension that would have contributed to this and we’re working from an investigative perspective to identify those sources of tension and bring a measure of calm. So, our patrols are not just random when you’re going to see us out, they’re going to be directed in areas where we think reprisals make take place.”
If you were in the Somerset Road area between 10 and 10:45 pm last night and have any information, CCTV, or cell phone footage – no matter how small – police urge you to call 247-1739.
You can also contact Detective Chief Inspector Derricka Burns at 717-0921, speak to a police officer you trust, or call the confidential Crime Stoppers hotline at 800-8477.
Ministry is working closely with police as they carry out their investigation, and in the long-term fight to end gun violence
Minister of National Security Michael Weeks issued the following statement in the wake of a shooting at Legends bar in Somerset that claimed two lives and injured three others.
“Last night in the tranquil village of Somerset, a most violent assault on the peace and security of our Country was committed, which resulted in the loss of two (2) of our young people, and serious injuries to three (3) others.
“This heinous firearm attack strikes at the very heart of our values as a peaceful and close-knit island community. It is a direct assault on everything for which we stand, and we will not tolerate it in Bermuda.
“Let me be clear: I condemn this vicious and senseless violence in the strongest possible terms. It is unacceptable. It is devastating, and it is a painful reminder of the long and difficult road we have travelled in the fight against gang and gun violence in Bermuda.
“To the families and loved ones of the victims, I extend my deepest condolences. No family should have to receive the news that their loved one has been murdered. I personally share your grief.
“The Bermuda Police Service is investigating, and we, of course, fully support their efforts. My Ministry is working closely with the BPS as they carry out this investigation, and we remain committed to helping them not only in this immediate response but in the long-term fight to end gun violence across the Island.
“We call on anyone with information, no matter how small, to come forward. Speak to the police. Use the anonymous Crime Stoppers hotline. Check your cameras. Talk to someone you trust. Silence cannot be an option in the presence of this kind of violence.
“As Minister, I also want to reiterate what I have said many times before: the safety and security of every Bermudian is this Government’s highest priority. But no government, no police force, and no single agency can do this alone.
“We need the collective strength of our entire community. We need our mothers, fathers, teachers, pastors, and neighbours to step forward, not only to break the silence but to be a part of the solution to this problem.
“I am also calling for calm in our community. In moments like this, when emotions are understandably high, we must stand united in seeking solutions, not divided in pointing blame. We must collectively reject violence in all forms and resist the urge to retaliate.
“In the coming days, the Ministry of National Security will continue to support the police, assist the victims’ families, and coordinate with our partners in the community to ensure that this cycle of violence is not allowed to continue.”
Premier David Burt and MPs from Sandys Parish also urged with information about last night’s double murder in Somerset to come forward.
Before delivering his Budget statement this morning, the Premier said he felt compelled to address the shooting, which took place at Legends Bar in Sandys Parish. He described the incident as “tragic” and “senseless.”
“The gunshots that rang out shattered not only the quiet of the evening but took the lives of two people,” said Premier Burt. “Two families this morning are confronted with unimaginable loss.”
He continued: “At a time of such tragedy our community responsibility is to support them and surround them with love and comfort. As I have indicated to the Minister of National Security, the Bermuda Police Service has the Government’s full support, and I likewise urge those who have knowledge of this incident to provide that information to the Police as part of the ongoing investigation.
“It is understandable that emotions may be raw at this time, but there is no place for retaliation.
“The Police have a job to do, and I am confident that with the support of the community they will work to apprehend those responsible. This is a time for unity, a time to speak peace over a troubled situation and a time to lift up two families whose lives are forever changed.”
Meanwhile, area MP and Speaker of the House, Dennis Lister, also addressed the Somerset tragedy via media release.
He stated, “Last night, darkness descended upon our community as gunfire claimed two lives and wounded two others. This act of senseless violence has left our community reeling, our hearts heavy with grief.
We, the Sandys MPs, stand united in sorrow and in resolve. We mourn with the families of the victims, extend our prayers to the injured, and offer our unwavering support to all affected by this tragedy.
We call upon our community to come together, to support one another, and to work collectively towards peace and safety in our neighborhoods.
We urge anyone with information to assist the Bermuda Police Service in their investigation. Silence can be a form of complicity; let us choose to be part of the solution.”
Governor Andrew Murdoch also echoed the above statements, and offered his condolences to the loved ones of the victims.
He stated, “I would like to express my full support for the statements made by the Premier, The Speaker and the Police Commissioner following last night’s tragic incident in Somerset. My heart goes out to the families of those affected.
I know that the Bermuda Police Service are doing everything they can to bring those responsible for this horrific incident to justice. They will need the support of the whole community in making that happen. I urge all those who can assist the police with their enquiries to get in touch with them. Now is not the time for silence. It is a time to stand up for peace in our community.
I would also like to express my thanks and admiration for the professionalism of the police and first responders who attended so rapidly last night. They too will be impacted by the violence that they witnessed.”
Premier and Finance Minister David Burt delivers the 2025/2026 Budget Statement
(SCROLL TO END FOR FULL BUDGET STATEMENT)
Introducing today’s 2025/2026 Budget, Premier and Finance Minister David Burt highlighted his Government’s record of managing the economy, efforts to tackle the cost of living, and their steering of Bermuda through the COVID-19 pandemic.
The Premier also talked about external pressures, including impacts on the supply chain. He says navigating the year ahead will require a careful balance.
He says the local economy is estimated to have expanded 4.5-5% in 2024.
There has been growth in tourism and construction, while international business remains the main driver of the economy. For the third consecutive year, there are a record number of Bermudians employed in international business, the Premier says.
International Business supported 5,047 jobs, a 2.4% annual increase. Total employment income in the sector
is up 12.3%.
Air visitor arrivals increased by 9.6%, and cruise arrivals by 1.9%.
Employment across the country increased in 2024.
It is essential Government policy helps sustain the necessary jobs in the economy, the Premier said.
Inflation eased in 2024, averaging 1.9%.
Year ending March 2024, total revenues amounted $1.176 billion, $21 million more than original estimates, mainly due to higher-than-expected payroll tax receipts. Payroll tax revenue was $537 million, $24.5 million above original estimates of $512.5 million.
Current account expenditure for 2023/24 was $977.5 million, $4.9 million above original estimates.
Revised projected revenues for 2024/25 are $1.248 billion, $16.1 million, higher than original
estimates of $1.232 billion.
Payroll tax revenues are projected at $606.5 million, $26 million above original estimates.
Revised current account expenditure is estimated to be $992.1 million, $128-thousand higher than original estimates.
Capital expenditure is revised at $107.9 million.
Debt service and guarantee management costs are revised at $128.8 million, a million above original estimates.
The Premier reports a $19.7 million consolidated fund surplus is expected, 19.5 million above original estimates.
The Premier says this Budget marks a turning point for Bermuda, no longer managing deficit after deficit.
He says Government must ensure economic growth is shared fairly across Bermuda’s society.
Customs duty on all building materials and supplies currently charged above 10%, will be reduced to a flat 10%.
Tax on fuel will be reduced to 4 cents per litre, a combined 80% reduction if taken with reductions put in place last year. The Premier says this will save the average BELCO customer $300 per year.
Customs duty on all motor vehicle parts will be eliminated, to lower maintenance and repair costs while Government works to repave roads.
The duty free exemption for residents returning from overseas will increase from $200 to $300.
Cell phone tax will be halved from 12$ per month to 6$
As previously reported, the case rate of Land Tax will be reduced from $300 to $250, but it won’t come into effect until 1st January 2026.
Also previously reported, license fees for private cars will be reduced 10%, but it will not come into effect until 1st April 2026.
Citing fiscal responsibility, the Premier David Burt said some proposals will not be progressed yet.
This includes the elimination of payroll taxes for employers retaining Bermudian employees over the age of 65. This was an effort to maintain Bermudians in the workforce.
Additionally, increasing the tax-free threshold for local dividend income will not progress this fiscal year.
Government is estimated to take in $1.43 billion.
Payroll tax revenues are projected to increase by $11 million.
No changes to the current payroll tax structure, while the Government awaits recommendations from the Tax Reform Commission regarding the Corporate Income Tax.
The Premier says the provisional figure of $187.5 million in revenue from the C.I.T. has been budgeted.
An estimated $1.11 billion is set to be spent in the coming year, an increase of $118 million.
The Premier explained the seemingly high figure, which includes…
Government will expand coverage for annual health exams for all HIP and FutureCare clients.
However, the Premier said Government will not freeze the Standard Premium Rate for a forth year – therefore an inflationary adjustment will be introduced.
Government and the taxpayer cannot support the cost of the hospital alone, the Premier says, and therefore fundraising efforts have been restarted by the Bermuda hospitals Board, and the Premier appealed to the private sector to assist. He cites that the construction of the new acute care wing was supported by $24 million dollars of private sector fundraising.
The Government Employee Health Insurance scheme has faced deficits. This year, shortfalls will be covered with $18 million from the Consolidated Fund.
$149.8 million is projected to be spent. Highlighted projects are road works, the installation of a new asphalt plant, investments in affordable housing, upgrades to the Tynes Bay Waste Treatment Facility, investments for the Hospital, and starting the replacement of Swing Bridge.
Debt service, or the interest on borrowing, is set to be $127.5 million.
Gross debt is $3.29 billion. With the Sinking Fund contributions, net debt stands at $3.25 billion, meaning the Sinking fund has been reduced to less than $40 million.
By the next fiscal year, 2026/25, Government expects to repay $500 million of Government debt.
Revenue for 2025/26 is expected to reach $1.43 billion, and Current Account Expenditure is estimated $1.11 billion, leaving a balance of $320 million.
Of that 320 million, 127.5 million will service debt, and 149.7 is projected to be spent on capital expenditure. The Premier therefore reports a projected surplus of $43.3 million.
Changes will seek to make the Public Service Superannuation Fund sustainable, including:
Bermuda’s Contributory Pension Fund must be made sustainable, as it underpins the Social Insurance benefits for more than 14,000 Bermudians, the Premier said. Counter to what the Premier says are misconceptions, he says the CPF is not mismanaged or misused, but soundly managed and invested. The challenges are demographic, the Premier says, with people living longer.
The Premier says we must adjust expectations, and he says Government will bring forward proposals to adjust contributions with a phased increase in age that contributors can receive their pension.
The Corporation Income Tax Agency has been given an operational grant of $4.78 million in 2025/26. The Premier says the CITA is envisaged to be self-funding from CIT revenues in the future.
First payments from the CIT will be collected in August 2025. Revenue estimates are $187.5 million, which the Premier says allows sufficient headroom to support any variability.
The Tax Reform Commission is expected to deliver its recommendations on managing the new tax environment in June 2025.
FULL BUDGET STATEMENT BELOW:
Over five separate nights in April, at least 10 French prisons were attacked
International news via Reuters:
French anti-terrorism prosecutors will no longer handle the investigation into 30 people suspected of involvement in a spate of prison attacks, saying on Friday their alleged actions were “within the framework of major organised crime”.
Over five separate nights in April, at least 10 French prisons were attacked. Automatic weapons were fired at jails, cars were torched in prison car parks and officers were intimidated in their homes.
Despite government ministers saying the attacks were likely sparked by a push to crack down on gangsters running their drug empires from behind bars, the French national anti-terrorism prosecutor’s office (PNAT) quickly took charge of the probe.
However, on Friday, the PNAT said: “It does not appear that these coordinated actions stem from a terrorist enterprise … No radical violent ideology, no foreign interference, both leads that were deeply investigated, could be found.”
The PNAT said 30 people had been arrested for alleged involvement in the attacks. Seven were already serving time in jail and four were minors. Seven have subsequently been released, it said.
The PNAT said investigators had identified the alleged creator of the “DDPF,” or “French prisoners’ rights,” group on Telegram, which it said was used to defend the attacks and rail against conditions for those behind bars. It said the person was a convicted inmate, awaiting trial in a drug gang trial, with alleged links to Marseille’s powerful and fast-expanding DZ Mafia gang.
The DDPF tag was daubed across many of the prisons attacked, and the PNAT alleged the DDPF Telegram group was used to order the hits, tendering out the work to small-time criminals to carry them out in a fashion commonly used by French gangs.
Given the alleged links to organised crime, the PNAT said it was handing the probe over to the JUNALCO organised crime office at the Paris prosecutor’s office.
The prison attacks have underlined France’s growing problems with organised crime. This week, lawmakers approved a sweeping counter-narcotics law to equip the state with tougher tools to fight a sharp rise in drug crime following a record-breaking surge of South American cocaine into Europe.
The new law will create a national prosecutor’s office for organised crime, and isolate dangerous kingpins in prisons, among other measures.
Reporting by Gabriel Stargardter, Editing by William Maclean
If enacted, the cuts would force the agency to slash hundreds or more jobs
International news via Reuters:
The White House is poised to ask Congress to cut funding for several of the Justice Department’s law enforcement offices under a budget proposal that would likely hamper its ability to carry out the Trump administration’s pledge to crack down on violent crime, three sources familiar with the matter said.
The fiscal-year 2026 budget proposal calls for cutting the budgets for the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI, said the sources, who spoke anonymously because the budget had not been made public.
The White House proposal calls for a roughly $1.2 billion budget for ATF in fiscal 2026, which would be down from its current funding level of about $1.625 billion, two of the sources said. If enacted, that would be the agency’s lowest budget since at least 2016, one added.
The DEA, meanwhile, would see its current budget of $2.6 billion cut to $2.5 billion, while the FBI would have its $10.6 billion budget cut to $10.1 billion if the White House proposal is enacted by Congress, the two sources added.
The Justice Department has been mulling whether to merge the ATF with the DEA, a proposal opposed by many gun-rights and gun-control groups as well as by agents at both agencies.
Derek Maltz – who has been overseeing the DEA until the Senate can confirm Terry Cole, Trump’s pick for its administrator – is stepping down on Friday, two other people familiar with his plans said.
The proposed cuts to the DEA, ATF and FBI follow an executive order late last month that President Donald Trump said was designed to support law enforcement. It directs Attorney General Pam Bondi to take steps that would allow states, counties and cities to “unleash high-impact local police forces.”
A Justice Department spokesman said the DOJ would “ensure our resources are effectively allocated to make America safe again.”
Representatives of the White House, DEA, ATF and FBI did not respond to requests for comment.
A spokeswoman for the White House Office of Management and Budget said in a statement that the proposed budget numbers being reported by Reuters are “false,” without elaborating.
The FBI, DEA and ATF all frequently work with local law enforcement to investigate crimes and analyze complex evidence. The ATF, most notably, played a crucial role in quickly helping to trace the gun used by the suspect who tried to assassinate Trump – who was then the Republican presidential candidate – in Butler, Pennsylvania, last year.
The Justice Department, in coordination with Elon Musk’s Department of Government Efficiency, moved in April to terminate more than 300 criminal justice grants valued at $811 million. Many of them provided funding for police, local prosecutors, court-appointed child advocates and victims services.
The White House’s proposed cuts to the ATF – which frequently finds itself under fire by pro-gun rights groups because of its role in regulating the firearms industry – would be particularly damaging, the sources said.
If enacted, the cuts would force the agency to slash hundreds or more jobs, two of the sources said, in addition to the nearly 600 people who have already accepted the government’s deferred resignation option.
The agency employs about 5,300, about half of whom are special agents, according to public records. It has been unable to fill about 150 slots for special agents due to budget cuts in 2024, forcing it to cancel its incoming agent classes, two of the sources said.
Such a decrease would limit the ATF’s ability to assist federal, state and local law enforcement from analyzing key ballistic evidence that is often vital to solving homicides and other gun-related crimes.
It would also hamper its ability to help investigate cases involving bombs and arson, a niche area of expertise that many local law enforcement agencies lack, and it would impede it from conducting DNA analysis on shell casings to help solve crimes.
The DEA’s budget proposal will not support funding for body-worn cameras, the sources said. The DEA quietly ended its body-worn camera program in late March, according to a previously unreported memo seen by Reuters. That memo reversed a policy under former Attorney General Merrick Garland that required all federal agents to wear them.
The DEA also just recently lost about 200 employees who took the second wave of deferred resignation offers, another source told Reuters.
Reporting by Sarah N. Lynch in Washington; Additional reporting by Brad Heath in Washington; Editing by Frank McGurty and Matthew Lewis
Also said it remains committed to its ambition of becoming a net zero bank by 2050
International news via Reuters:
Shifting global trade relations have increased economic uncertainty with serious risks to growth, making it difficult for international banks to read the medium term outlook effectively, HSBC Chairman Mark Tucker said on Friday.
Speaking at the bank’s annual shareholder meeting in London, a day after it was announced he will leave the lender by the end of the year, Tucker said he was confident HSBC can meet targets and deliver another year of healthy returns in 2025.
HSBC was among major European lenders that this week retained ambitious performance targets after bumper first quarter profits, despite threats to their earnings from a possible global recession and shaky business confidence.
Asia and trade-focused HSBC is potentially more exposed than some peers to the fallout from U.S. President Trump’s sweeping tariffs, as they threaten to disrupt global trade corridors and hurt China and Asia-based businesses that import or export.
The bank also said it remains committed to its ambition of becoming a net zero bank by 2050 and has begun a review of interim financed emissions targets and associated policies.
HSBC had alarmed campaigners earlier this year by ditching its target of reaching net-zero carbon emissions across its business by 2030, blaming slow change in the economy.
Some campaigners mounted a modest protest at the event on Friday, voicing concerns that banks like HSBC are capitalising on a shift in the political climate surrounding sustainability and climate matters.
Climate-sceptic U.S. President Donald Trump has signalled he plans to scale back U.S. climate commitments, which Trump says can impede business opportunities for multinational companies, especially those active in developing economies.
Reporting by Lawrence White and Sinead Cruise; Editing by Susan Fenton
Kwok is the executive director of the Washington-based Hong Kong Democracy Council
International news via Reuters:
Hong Kong national security police have arrested the father and brother of wanted activist Anna Kwok for allegedly dealing with her finances, local media reported on Friday, in the first use of the city’s security law to deal with an absconder’s relatives.
Kwok is the executive director of the Washington-based Hong Kong Democracy Council and one of 19 overseas activists wanted by the city’s national security police. She is accused of colluding with foreign forces and police have offered a bounty of HK$1 million ($127,656) for her arrest.
Hong Kong’s national security law has been criticised by rights groups and several democratic nations for eroding freedoms and quashing dissent in the financial hub. The United States has also strongly condemned the city’s ongoing harassment of the family members of pro-democracy activists living overseas.
Police said in a press release on Friday that they had arrested two men aged 35 and 68 on April 30 on suspicion of handling “funds or other financial assets” belonging to Kwok.
Local media cited unnamed sources saying the two men were Kwok’s father and brother.
According to a charge sheet seen by Reuters, 68-year-old Kwok Yin-sang, identified as Anna Kwok’s father by Hong Kong media, was charged under the security law on Friday morning for attempting to deal with the finances.
The document said he had been trying to deal with Kwok’s life and personal accident insurance policy which could be used to obtain funds.
Local media reported that he was denied bail by designated national security judge Victor So at the West Kowloon Magistrates’ Courts, while the younger man has been released on bail pending further investigation. The case was adjourned to June 13.
A lawyer for Kwok’s relatives could not be reached for comment.
Police warned the public that handling an absconder’s funds was a serious offence punishable by a maximum of seven years in jail.
Chinese and Hong Kong authorities say the security law has restored the stability necessary for preserving Hong Kong’s economic success.
($1 = 7.7550 Hong Kong dollars)
Reporting by Jessie Pang; editing by Saad Sayeed
Players willing to continue to access the U.S. market are forced to hike their price tags
International news via Reuters:
As the United States ends a tariff exemption for small parcels on Friday, some retailers have stopped selling to U.S. customers while others are seeking temporary workarounds in the hope the tariff rate may be reduced.
The removal of “de minimis” – duty-free treatment of e-commerce packages worth less than $800 – for products originating from China and Hong Kong exposes those goods to tariffs of 145% on most Chinese goods following U.S. President Donald Trump’s decision last month. The move upended global trade and triggered retaliation from Beijing.
British beauty products retailer Space NK has paused e-commerce orders and shipping to the United States “to avoid incorrect or additional costs being applied to our customers’ orders”, the company said in a notice on Wednesday.
It is not alone. Understance, a Vancouver-based company that sells bras and underwear manufactured in China, told customers in an Instagram post that it would no longer ship to the United States due to the tariffs, saying it will resume once there is clarity.
“We’re going from zero to 145%, which is really untenable for companies and untenable for customers,” said Cindy Allen, CEO of Trade Force Multiplier, a global trade consultancy.
“I’ve seen a lot of small to medium-sized businesses just choose to exit the market altogether,” she added.
Import charges can vary depending on shipment methods. For goods handled by the U.S. Postal Service the tariff will be 120% of their value, or $100 per package. The amount is due to increase to $200 in June, according to implementation guidance from U.S. Customs and Border Protection.
PRICE HIKES UNDERWAY
Players willing to continue to access the U.S. market are forced to hike their price tags.
Oh Polly, a British clothing retailer, has increased prices in the U.S. by 20% compared to its other markets, and may have to consider further price increases because of the higher tariffs, said managing director Mike Branney.
Singapore-based fast-fashion giant Shein sought to reassure customers in a post on its U.S. Instagram account on Thursday, saying: “Some products may be priced differently than before, but the majority of our collections remain as affordable as ever.” Shein sells clothes mostly manufactured in China, and the U.S. is its biggest market.
Temu, the international arm of Chinese e-commerce giant PDD Holdings, prominently featured products already in U.S. warehouses on its website, labelled ‘Local’, and a pop-up informed customers there would be no import charges for local warehouse items.
“All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country,” Temu said in a statement, adding that its pricing for U.S. customers “remains unchanged”.
But items imported before the May 2 change will eventually run out. Both Shein and Temu have slashed their U.S. digital advertising spending in the past weeks as they prepared for the change that is likely to hit their sales.
Shein did not immediately reply to a request for comment.
De minimis was initially introduced to smooth online shopping and boost international trade, but became the target of bipartisan criticism due to its role in facilitating smuggling of fentanyl ingredients from China and fuelling a surge in imports of cheap clothes, toys, and furniture made in China through online platforms like Temu, Shein, and Amazon Haul.
De minimis has also been a channel for counterfeit goods. In 2024, de minimis shipments accounted for 97% of the intellectual property infringement-related cargo seizures made by Customs and Border Protection.
Without de minimis, sellers of goods made in China have to provide U.S. customs with more detailed information about where each component of their product is made, an increased administrative burden that, along with the huge tariff cost, is dissuading small retailers.
UPS CEO Carol Tome said on Tuesday that many of the delivery firm’s small to medium-sized business customers source 100% of their goods from China.
U.S. online marketplace Etsy said in a notice to sellers earlier this month that it was making it easier for them to clarify the country of origin of their products, as tariffs are applied based on where a good is made rather than where it is dispatched from.
While disruptive to ecommerce, the end of de minimis treatment of Chinese goods could give a boost to retailers less reliant on ecommerce or on Chinese manufacturing.
British fast-fashion retailer Primark, which sells clothes to U.S. customers only through its stores across the country, not online, said it could benefit from the change.
“With prices going up from this part of the trade, I wonder if some Americans might start going back to shopping centres to find value there,” George Weston, CEO of Primark owner Associated British Foods, told Reuters on Tuesday.
Reporting by Helen Reid, additional reporting by Amy Tennery, Lisa Baertlein, James Davey; Editing by Lisa Jucca, Anna Driver and Emelia Sithole-Matarise
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