|Bid||572.90 x 0|
|Ask||573.20 x 0|
|Day's range||565.90 - 573.80|
|52-week range||0.78 - 687.70|
|Beta (3Y monthly)||0.57|
|PE ratio (TTM)||8.91|
|Earnings date||28 Oct 2019|
|Forward dividend & yield||0.31 (5.43%)|
|1y target est||9.20|
DUBAI/ABU DHABI (Reuters) - HSBC Holdings has laid off about 40 bankers in the United Arab Emirates (UAE) and Emirates NBD is cutting around 100 jobs, as banks in the Arab world's second-biggest economy reduce costs, sources familiar with the move told Reuters. The job cuts come at a time of weak economic growth, especially in the region's business hub - Dubai - which is suffering from a property downturn. HSBC's redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim Chief Executive Noel Quinn seeks to tackle its problems head-on in his bid for the full-time role.
DUBAI/ABU DHABI, Nov 14 (Reuters) - HSBC Holdings has laid off about 40 bankers in the United Arab Emirates (UAE) and Emirates NBD is cutting around 100 jobs, as banks in the Arab world's second-biggest economy reduce costs, sources familiar with the move told Reuters. The job cuts come at a time of weak economic growth, especially in the region's business hub - Dubai - which is suffering from a property downturn. HSBC's redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim Chief Executive Noel Quinn seeks to tackle its problems head-on in his bid for the full-time role.
Momentum is sticky and persists for longer than investors tend to anticipate. The downside of this is that stocks with recent negative momentum are likely to c8230;
(Bloomberg) -- Hangzhou Hikvision Digital Technology Co. Ltd.’s shares fell by the most in more than a month after China’s securities regulator opened a probe into alleged misconduct by its billionaire vice chairman.The investigation, announced in a filing Wednesday, deals another blow to the surveillance giant that’s blacklisted by Washington. The Chinese seller of video cameras said the China Securities Regulatory Commission is probing two of its board members -- Gong Hongjia and Hu Yangzhong -- adding that the pair are cooperating with authorities.Hikvision is fighting for its survival after the U.S. banned the company in October, accusing it of helping Beijing crack down on Muslim minorities in the far-western region of Xinjiang. The sanction cut Hikvision off from American chipsets needed for its surveillance cameras. The company denies any wrongdoing. Hikvision’s shares fell as much as 4.5% on Thursday morning, the biggest decline since Oct. 10.Vice-chairman Gong’s fortune peaked in November 2017 at $13 billion but escalating trade tensions between Washington and Beijing have since taken a toll. It’s now worth $6.9 billion as of Wednesday’s market close in China, excluding about 41% of his stake in Hikvision that’s been pledged as collateral, according to the Bloomberg Billionaires Index. That’s still up 21.6% since the beginning of this year, mainly tracking the movement of Hikvision shares.Gong was born in eastern China’s Zhejiang province in 1965 and holds a computer science degree from Huazhong University of Science and Technology. He later moved to Hong Kong, where he founded his first company, electronics maker Tecsun Radio, according to a report by HSBC on Chinese tycoons. He earned the moniker “China’s best angel investor,” creating or investing in more than a dozen companies, the report said. He took up his current position at Hikvision in 2008 and holds a 13.4% stake, making him the company’s largest individual shareholder.Hu is president of Hikvision and holds a stake of just under 2%.The probe centers on alleged misconduct by the men related to the disclosure of information, according to the Hikvision filing. A person familiar with the matter said the issue arose from a bonus plan for employees that hadn’t been declared. The investigation is into the executives rather than the company, the person said, asking not to be identified discussing an ongoing case.A Hikvision representative declined to comment beyond the statement when contacted by Bloomberg News.Hikvision warned last month it may lose customers in overseas markets because of the U.S. blacklisting, underscoring the extent to which curbs on the sale of American technology may hurt the world’s largest video surveillance business. The company said it had anticipated the action and stockpiled enough key parts to keep operations going for some time. It has also said it didn’t foresee major impact on its business as a result of the ban.(Updates with details of share movement.)\--With assistance from Venus Feng.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Even as Hong Kong has reduced down-payment requirements to help young professionals and families to buy homes, banks are beefing up mortgage application standards to ensure that a recession does not saddle them with bad loans, bankers and mortgage brokers said. Last month, Hong Kong Chief Executive Carrie Lam, struggling to restore confidence in her administration after five months of civil unrest, approved rules allowing first-time homebuyers to borrow as much as 90% of a HK$8 million ($1 million) home's cost. Historically, mortgage delinquency is rare in Hong Kong, with a rate of about 0.02%.
* U.S. futures point to weaker Wall Street open Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Decent GDP growth path is not too far away as the chances of a resolution of Brexit-induced uncertainty is likely and a sizeable fiscal impulse is on the horizon, Goldman Sachs economists say. With Conservatives being favourites to return to power, Goldman Sachs believes clarity on the UK's terms of exit should emerge faster than under a Labour government.
* U.S. futures point to weaker Wall Street open Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Amid trade war fatigue, European stock markets are once again driven (down about 0.6% at the moment) by Trump commenting on the negotiations with China. Alain Bokobza, head of global asset allocation at SocGen told us during a chat on Tuesday afternoon that reading markets on the short term was more than tricky.
* STOXX 600 hit July 2015 high at yesterday's close Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Madrid is lagging the market as investors brace for more instability after the Socialists and the far-left Podemos party formed a government pact that still lacks majority, following an inconclusive general election - the second this year. The IBEX is down 1.6% and the STOXX is falling 0.8% -- a gap that at a first glance isn't too scaring.
London's main bourse retreated on Wednesday as traders grew weary of mixed trade signals from U.S. President Donald Trump, while mid-caps slid on the back of weak economic data and a plunge in Tullow Oil. The more internationally-exposed FTSE 100 fell 0.2%, trimming some early losses as exporter stocks such as Diageo and AstraZeneca benefited from a weaker pound. The jump in exporter shares also helped the bourse outperform the broader European benchmark index.
European shares retreated from four-year highs on Wednesday, as ambiguity over a U.S.-China trade deal and intensifying unrest in Hong Kong kept investors at bay, while Spanish stocks underperformed as Rome braced for more political uncertainty. The pan-European STOXX 600 index fell 0.2% with trade-sensitive autos and miners hurt as a much awaited speech by U.S. President Donald Trump gave scant clues on the progress of a trade deal with China.
(Bloomberg) -- Chinese electric-car maker Xpeng Motors Technology Ltd. has raised $400 million from investors including technology company Xiaomi Corp., as it seeks a spot among China’s more serious contenders in the market.Private-equity firms and individual investors including founder He Xiaopeng also took part in the funding round, the company said Wednesday in a statement.The startup said in June it has produced 10,000 units of its G3 sport utility vehicle, putting it in competition with local rivals such as NIO Inc. and global competitors including Tesla Inc. in the world’s biggest EV market.Yet demand in China is sputtering, with EV sales falling for months since the government cut subsidies earlier this year. The slump has raised speculation among investors that only a small fraction of China’s aspiring electric-car makers will survive.Xpeng is working with Xiaomi in developing technologies connecting smartphones with vehicles. Xpeng’s backers also include ecommerce giant Alibaba Group Holding Ltd.The carmaker said it also secured “several billions” of yuan in unsecured credit lines from China Merchants Bank Co., China Citic Bank Corp. and HSBC Holdings Plc.To contact the reporters on this story: Ville Heiskanen in Singapore at email@example.com;Chunying Zhang in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Ville Heiskanen, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Global equity markets and the dollar rose on Tuesday as U.S. President Donald Trump reiterated the United States is close to signing a trade deal with China but offered no new details. Stocks on Wall Street set fresh record highs before Trump's highly anticipated remarks to the Economic Club of New York, but slowly pared some gains after the speech, which contained no major policy announcements. Trump touted his administration's economic record in a campaign-style speech but did not announce a venue or date for signing a trade deal with Chinese President Xi Jinping as market speculation had suggested he might.
Equity markets and government bond yields rose on Tuesday as investors awaited a speech by U.S. President Donald Trump on U.S. trade policy, in which he is expected to discuss talks with China and a tariff decision on European automakers. First, that there would be reassurances the China talks were progressing and second, that there would be a nod to overnight reports that a decision on European car tariffs would be delayed another six months. Overnight in Asia, MSCI's broadest measure of Asia-Pacific shares outside Japan climbed 0.5% while Japan's Nikkei ended 0.8% higher.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.Germany through the worst of its downturn, peace in the trade war and green shoots for the global economy next year.It’s what investors have long dreamed of. Now, they’re starting to believe it.Confidence in Germany’s economy has risen to a six-month high, while a Bank of America survey showed a record surge in optimism about the global outlook. Stocks have rallied and the U.S. 10-year yield is back up near 2%, after recession fears drove it well below that level this summer.Part of the uptick may reflect hopes that the U.S. and China are closer to a trade accord, while economic surveys are offering signs that the manufacturing-led slowdown has troughed. More recently, there’s been news that the Trump administration may delay a decision to slap tariffs on European cars -- a welcome development for Germany’s auto industry.The improvement in the ZEW -- which dropped to a near eight-year low over the summer -- comes just two days before data are expected to show Germany sank into a technical recession in the third quarter. But that’s effectively old news, and the improvement in forward-facing indicators means many are looking past it.Growth in Europe’s largest economy will probably resume this quarter, though remain at a very sluggish pace well into 2020.But the sense of hope is helping global equities, with the S&P 500 and Germany’s DAX among indexes near record highs. Benchmark Treasury yields have risen 25 basis points this month, setting them toward a break above 2%. Capturing the mood, the Bank of America survey also said investors sold more defensive stocks, such as utilities and staples, while turning to assets sensitive to the economic cycle, like value shares, financials and equities in the euro area.“Of course, it is early days. The hard data is still bad,” said Florian Hense, an economist at Berenberg. “But if genuine economic data start to confirm the message from markets and financial analysts, we can usually be reasonably confident that better times are ahead again.”The outlook is murky in parts. Not least because of the U.K. election next month and the ongoing, though reduced, risk of a no-deal Brexit. U.S. President Donald Trump, who speaks in New York later, could also derail the optimism if he pushes back on hopes about the chance of a U.S.-China trade deal.Any near-term relief on auto tariffs don’t necessarily mean a change the broad trend of trade tensions that will continue to weigh on global growth, according to HSBC global chief economist Janet Henry. HSBC sees the U.S. expansion slowing to 1.7% in 2020, below the 1.8% Bloomberg consensus.“We are operating in a different world of ongoing de-globalization trends,” she said on Bloomberg TV on Tuesday. “The bigger picture is going to be with us in the coming years.”To contact the reporter on this story: Fergal O'Brien in Zurich at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Stirling at email@example.com, Michael Hunter, Sid VermaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
World shares and benchmark government bond yields inched higher on Tuesday, as investors awaited a speech by U.S. President Donald Trump on U.S. trade policy and an inevitable maelstrom of headlines. Firstly, that there would be reassurances that China talks were progressing, and secondly, that there would be a nod to overnight reports that a decision on European car tariffs would be delayed for another 6 months. Trade-sensitive chipmakers helped pushed Europe's STOXX 600 up 0.4% and U.S counterparts including Micron Technology, Nvidia and NXP rose between 0.6% and 0.9% in premarket New York trading.
(Bloomberg) -- HSBC Holdings Plc is intensifying efforts to mend ties with Qatar after diverting its attention from the gas-rich Gulf state that’s been isolated by a regional standoff to chase a fee windfall in Saudi Arabia.Acting Chief Executive Officer Noel Quinn traveled to the country this month to meet officials at the sovereign wealth fund, finance ministry and central bank, according to people with knowledge of the matter, who asked not to be identified because the matter is private.The bank is trying to improve relations with key executives such as Finance Minister Ali Shareef Al Emadi, who sits on the boards of the country’s biggest bank, national airline and Qatar Investment Authority, one of the people said. Representatives for HSBC and the QIA declined to comment. Qatar’s media office declined to comment on behalf of the ministry of finance and central bank.HSBC is among global banks seeking to improve relations with Qatar two and a half years after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut ties with Doha. They accuse Qatar of financing terrorism and cozying up to Iran -- allegations it denies. The stakes of doing business with the country are high as the QIA pushes into technology investments and expands its global portfolio of trophy assets -- most recently with the acquisition of the St. Regis New York.Balancing ActInternational banks operating in the Gulf have been playing a delicate balancing act since the standoff started: chasing deals in the U.A.E. and Saudi Arabia -- where the world’s biggest initial public offering is underway -- and quietly doing Qatari business from London or New York instead of Dubai. The two countries were informally warning bankers that close ties with Doha could have consequences, while central banks demanded that lenders reveal their exposure to Qatari clients, Bloomberg News has reported.Still, there are signs that regional political relations are thawing. Qatar has taken some steps toward resolving its tensions with its neighbors but must still do more, a senior Saudi official said in Washington earlier this month.After a drought of public transactions in Qatar, HSBC is starting to get back into public dealmaking in the country. In April, the bank was part of QIA’s Project Maple II BV unit’s 625 million-pound ($801 million) refinancing of 8 Canada Square in London’s Canary Wharf area. It worked on 15 bond sales in the country in the two years before the standoff started, according to data compiled by Bloomberg.Saudi DealsIn Saudi Arabia, HSBC is one of the most active international investment banks through its local unit HSBC Saudi Arabia Ltd., in which the London-based lender owns a 49% stake. Quinn was among finance elites that attended Saudi Arabia’s marquee investment summit at the end of October.Samir Assaf, CEO of global banking and markets, was among the few top banking executives to show up at the 2018 event that was overshadowed by the murder of government critic Jamal Khashoggi. HSBC’s commitment to the kingdom was rewarded when the bank was appointed on Saudi Aramco’s mammoth share sale.\--With assistance from Zainab Fattah.To contact the reporters on this story: Archana Narayanan in Dubai at firstname.lastname@example.org;Matthew Martin in Dubai at email@example.com;Harry Wilson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Stefania Bianchi at email@example.com, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- China’s most ubiquitous company is hiding one of its most valuable assets. That needs to change.Tencent Holdings Ltd., best known for the WeChat messenger that almost everyone in the country uses, has a growing fintech business. But it’s getting overshadowed by the games and social media divisions. By spinning it off into a new company, with a move to a separate listing, management could unlock as much as $230 billion in value. That would make the entity China’s fourth-largest listed company and the world’s sixth-biggest financial services firm.Such a move could help Tencent retake some of the limelight that it’s about to share with Alibaba Group Holding Ltd. once that company lists in Hong Kong. Alibaba’s fintech unit, Ant Financial Services Group, already functions as a separate business with the e-commerce giant holding a 33% stake. At Tencent, fintech and business services accounted for 26% of revenue last quarter. The Shenzhen-based company is due to report third-quarter earnings late Wednesday.I estimate that revenue from Tencent’s fintech business grew in excess of 70% last year.(1) The vast majority of that was payments. Yet Tencent also offers other products such as wealth management and has a 30% stake in WeBank, China’s first online-only bank, which was founded five years ago. Data on its fintech profits are hard to ascertain, yet information disclosed by Alibaba shows that Ant Financial was unprofitable last year, so Tencent could be in a similar boat. That’s not necessarily a bad thing. The two rivals are startups in the classic sense, using fast revenue growth driven by marketing and incentives to gain ground fast. A major reason why both have lost money in recent years is due to low take rates, the commissions received from processing payments, because they’ve offered discounts to consumers and merchants. A turnaround could be near, Sanford C Bernstein senior analyst David Dai wrote in a recent series on China’s fintech sector. He estimates that a maturing market will ease cut-throat competition and allow both companies to take a greater share of the money that sloshes through their payments platforms.As a result, Tencent’s payment business (TenPay) alone could be worth $137 billion, compared to $127 billion for Ant’s AliPay, the Bernstein team figures. HSBC Holdings Plc uses two methodologies(2) to come up with an estimated value of around $128 billion. Throw in the other products, and Bernstein calculates a base-case valuation for Tencent’s fintech unit of $160 billion, going as high as $230 billion. This indicates that 40% to 58% of Tencent’s current market cap is locked up in this hitherto hidden division. Bernstein has a base case of $210 billion for Ant, reaching as high as $320 billion.Payments spinoffs have proven to be lucrative in the past. EBay Inc. proved it with PayPal Holdings Inc. in 2015, with the latter posting a 177% normalized return since then, outpacing the 145% rise in the S&P Data Processing sub-index which includes Visa Inc. and Mastercard Inc. PayPal also trounced both eBay (35%) and the S&P 500 (49%). Square Inc., another payments provider, has been one of the hottest stocks of the past decade, returning more than 590% since its initial public offering in 2015.A more recent example comes from India, where Walmart Inc. is reported to be spinning off payments business PhonePe from local e-commerce company Flipkart Group, which it acquired last year. That transaction could turn a $20.8 billion startup into two unicorns with a combined value of more than $30 billion. Tencent doesn’t need to rush to list this fintech unit. Appetite for mega IPOs is likely to be satiated by Alibaba’s Hong Kong listing and that of Saudi Aramco over the next few months. And there’s a long runway of big startups ready for their moment in the sun. By merely making it a separate entity, management can signal intent and allow investors to start re-rating Tencent’s stock accordingly.An offering may not even be necessary, since Tencent is already sitting on more cash than it needs. Instead, the company could distribute shares in Tencent Fintech to existing shareholders, and then directly list the stock. That’s similar to the approach advocated by activist investor Dan Loeb for a Sony Corp. split.Tencent is sitting on a bright light in this fintech unit. Time to let it shine.(Updates to include reference to third-quarter earnings schedule in third paragraph.)(1) The "others" category includes fintech, cloud, film & TV. Tencent noted that fintech is the major component and gave a figure for cloudbut not content.(2) HSBC Approach 1: valuation per user. Approach 2: Using Tencent operating margins applied to its payments business, then comparing to peers.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Many of the fintech firms that are disrupting the banking sector will not be around in 10 or 100 years, the CEO of challenger bank Starling said.
British banking heavyweights HSBC and RBS are launching new digital banking platforms, as competition for digitally savvy customers steps up in the face of a wave of online startups. HSBC rolled out a new app-based business banking service - previously known internally as 'Project Iceberg' and now named 'HSBC Kinetic' - in beta testing mode on Monday, while RBS is putting the finishing touches to its new digital bank Bo ahead of a public roll-out later this month. HSBC Kinetic will offer small businesses mobile-managed current accounts, overdrafts and spending and cashflow insights generated by the app crunching data on a company's spending habits.
Demand for defensive stocks helped European shares recover from early losses on Monday as investors grappled with issues ranging from violent Hong Kong protests to an inconclusive Spanish election and weak data from China. After falling nearly 0.5% at one point, the pan-European STOXX 600 index closed flat, helped by a turnaround in bank shares and gains for sectors considered safer bets during times of economic uncertainty, such as food and beverage and real estate. London's FTSE 100 led declines among the major regional indexes with a 0.4% drop, while stocks in Frankfurt fell 0.2% and Paris rose 0.1%.
Swiss bank UBS was fined HK$400 million ($51.09 million) by Hong Kong's securities regulator for overcharging up to 5,000 clients for nearly a decade, the watchdog said on Monday. The Hong Kong Securities and Futures Commission (SFC) said in a statement that an investigation found UBS had overcharged clients on 'post-trade spread increases' and charges in excess of standard disclosures and rates between 2008 and 2017. The fine is the equal to the largest ever levied on a bank in Hong Kong.