Bloomberg Daybreak: Europe Edition HSBC Quantum World-First, Pricey Stocks ‘New Normal’, Britain's Bitter Pill
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Sep 25, 2025 HSBC has made a quantum leap in finance with a breakthrough in quantum computing for bond trading. Intel is eyeing Apple for investment amidst its own chipmaker struggles. In the US, stock prices may be high, but experts argue they could be justified by strong growth. The US has retroactively cut auto tariffs on the EU, signaling a shift in trade dynamics. Meanwhile, tensions rise in UK pharma as major drugmakers pause investments over pricing disputes.
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Quantum Shows Real Trading Edge
- HSBC's quantum trial delivered a measurable trading edge using IBM's Heron processor.
- The bank reported a 34% improvement in predicting bond trade likelihood from the trial.
Sky-High Valuations Could Be Normal
- Bank of America argues today's high S&P 500 multiples may be the 'new normal' given index quality and potential sales growth.
- Strategists suggest anchoring expectations to current valuations rather than past norms.
P/E Ratio Near Rare Peaks
- The S&P 500's 12-month forward P/E hit 22.9, a level only exceeded twice this century.
- Those prior peaks were the dot-com bubble and the 2020 pandemic rally, stressing valuation risks.