HSBA.L - HSBC Holdings plc

LSE - LSE Delayed Price. Currency in GBp
609.60
-2.40 (-0.39%)
At close: 4:39PM BST
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Previous Close612.00
Open612.20
Bid623.00 x 0
Ask610.20 x 0
Day's Range609.60 - 615.70
52 Week Range6.30 - 687.70
Volume13,715,664
Avg. Volume32,193,228
Market Cap122.924B
Beta (3Y Monthly)0.78
PE Ratio (TTM)8.82
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.32 (5.25%)
Ex-Dividend Date2019-08-15
1y Target EstN/A
  • The Credit Robot at HSBC Says Odds of a Bear Market Are Now 84%
    Bloomberg

    The Credit Robot at HSBC Says Odds of a Bear Market Are Now 84%

    (Bloomberg) -- From booming bond sales and benign default rates to benevolent central banks, all seems well in the credit market right now. That’s unless you ask the robot prognosticator at HSBC Holdings Plc.The machine-learning model reckons there’s now an 84% chance of a bear market sweeping U.S. corporate debt within the next year. That’s the highest level since before the financial crisis and “a validation” of HSBC’s mildly bearish view, according to strategists led by Song Jin Lee.“This suggests the year-to-date rally in credit spreads is likely to be a temporary ‘pullback’ before the big sell-off hits in 2020,” the team wrote in new research this month.The urgent question for investors is what the robot knows that the market doesn’t.HSBC’s credit strategists are among the swelling cohort of investment banks and investors around the globe who are complementing their forecasts with this much-touted branch of artificial intelligence, which seeks to perform cutting edge data analysis without human guidance at every step.The bearish-credit robot uses an advanced version of a decision tree -- geeks would call it an XGBoost model -- to divine the chances of a market downturn from nearly a dozen indicators. The pitch is that, by learning from its mistakes and mapping the complex relationships between various factors, it can make better predictions than humans using more traditional approaches.HSBC trained its model with four decades of data, from 1950 to 1989, then tested it on data from 1990 onward. It accurately predicted five of the last six credit bear markets with a lead time of between seven and 16 months.To skeptics, machine-learning is often little more than a marketing exercise that provides no great advance in sorting signal from noise. And for now at least, markets show few overt signs of an imminent downturn. High-yield credit spreads have tightened this year to far below the five-year average on expectations a global return to monetary easing will drive more money into bonds and avert a recession along the way.HSBC acknowledges these models can seem like a “black box,” but the team does delve into one process to support its predictions. Known as SHAP, it’s a machine-learning technique that essentially tries to explain predictions by simplifying the model. It shows two indicators flashing red for U.S. corporate debt now: elevated consumer confidence, which tends to precede economic weakness, and a flat Treasury yield curve.Other inputs include things like bond issuance, earnings growth and truck sales.Two more caveats: Some degree of human intervention is still necessary, mostly in the initial phase of gauging and improving data quality. And the model tends to miss bear markets triggered by external shocks, such as a crash in commodities.“This exercise demonstrates the versatility of tree-based machine learning algorithms, even when faced with poor quality data and/or a large imbalance in the occurrence of the predicted state (in this case, credit bear markets),” the team said. “But as flexible as these algorithms are, they still require a helping hand from friendly humans.”To contact the reporter on this story: Justina Lee in London at jlee1489@bloomberg.netTo contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Sid VermaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    How my bank and I beat dementia to salvage my career

    At first I put it down to stress, but in 2017 I was formally diagnosed with Alzheimer’s disease. In 2016, we entered a three-year partnership with Alzheimer’s Society to become a dementia-friendly organisation.

  • HSBC almost triples size of local commercial lending team
    American City Business Journals

    HSBC almost triples size of local commercial lending team

    Global banking giant HSBC has almost tripled the size of its local commercial lending team with a focus on companies that have an international bent. HSBC entered the local commercial lending scene in 2005, headquartering operations in Radnor, which it sees as centrally located to its clientele. “We do some domestic work here but most of our clients have international offices or are foreign companies with U.S. headquarters here.” Lotz, whose geographic territory extends from Washington D.C., to New York, focuses on clients with $50 million to $500 million in annual revenue.

  • Financial Times

    Hong Kong banks: lightning conductors

    Hong Kong’s rush-hour trains were delayed by a derailment on Tuesday. Political protests are delaying the launch of eight online banking services, Reuters reports. This provides a respite for HSBC, Standard Chartered and their investors.

  • U.S. Is Pursuing More Charges at JPMorgan Over Metals Trades
    Bloomberg

    U.S. Is Pursuing More Charges at JPMorgan Over Metals Trades

    (Bloomberg) -- Federal prosecutors are closing in on JPMorgan Chase & Co. officials in an investigation of price rigging in precious metals markets.With help from at least two of the bank’s former traders who pleaded guilty, the government is looking to bring charges against people higher up the chain at the bank, two people familiar with the years-old inquiry said. Just last month, a managing director who oversaw global precious-metals trading was placed on leave along with another employee, other people said.The traders who admitted guilt said the manipulation was routine, sanctioned by higher-ups and went on for years. “While at JPMorgan I was instructed by supervisors and more senior traders to trade in a certain fashion, namely to place orders that I intended to cancel before execution,” former trader John Edmonds said at a October 2018 hearing after pleading guilty to commodities fraud and conspiracy.The JPMorgan investigation grew out of a multibank U.S. crackdown on manipulation of commodities markets using techniques including spoofing, in which traders place orders without intending to execute them to try to move prices in their favor. The Justice Department has brought criminal charges against 16 people, including traders who worked for Deutsche Bank AG and UBS Group AG. Seven pleaded guilty, one was convicted at trial and another was acquitted.Deutsche Bank, HSBC Holdings Plc and UBS last year agreed to pay a total of about $50 million to settle civil claims by the Commodity Futures Trading Commission that the firms’ traders engaged in spoofing techniques to manipulate prices of precious-metals futures. Deutsche Bank agreed to pay $30 million, UBS $15 million and HSBC $1.6 million. The banks didn’t admit or deny wrongdoing.Peter Carr, a Justice Department spokesman, declined to comment. The bank disclosed the Justice Department inquiry in company filings earlier this year, saying it was cooperating with the Justice Department and other authorities.Michael Nowak, the managing director who was previously named in a civil suit, was placed on leave in August along with Gregg Smith, according to the people familiar with the matter. Nowak didn’t respond to a request for comment, and Smith couldn’t be reached. The moves were reported earlier by Reuters.JPMorgan officials believe the probe is limited to the bank’s trading desk, one of the people familiar with the matter said. Investigators are examining a paper trail related to the spoofing activities, another person said, in addition to drawing on testimony from former insiders.One of those insiders, Christiaan Trunz, a former trader for Bear Stearns and JPMorgan, told a federal judge in Manhattan last month that spoofing trades of precious metals was rampant at the bank for nearly a decade and that he was taught how to do it from other traders at JPMorgan. Trunz, who pleaded guilty on Aug. 20 to two federal fraud charges, said he manipulated futures markets for gold, silver, platinum and palladium from offices in New York, London and Singapore from 2007 to 2016.“It is understood that spoofing was a strategy that we used to trade precious metals futures,” Trunz said.Trunz was echoing descriptions offered by Edmonds, another trader, who several months earlier pleaded guilty for transactions involving silver futures. He said the conspiracy ran from 2009 to 2015 and involved hundreds of trades that he made personally. Edmonds said he was taught how to rig the market by veterans and supervisors.“I was instructed that if a client wished to sell futures I should simultaneously place both bids and offers with the intent of canceling the bids prior to execution,” Edmonds said during his plea hearing.Edmonds said the purpose was to falsely transmit liquidity and price information in order to deceive other market participants about the supply and demand so they would trade against the orders that JPMorgan wanted to execute.“We created market activity which artificially drove the sale price up and induced other market participants to purchase at an inflated price,” he said. Edmonds entered into a cooperation agreement with the CFTC in July.After Edmonds pleaded guilty, JPMorgan was hit with a proposed class action lawsuit by investors that also names Nowak and another onetime managing director, Robert Gottlieb. Gottlieb didn’t respond to a request for comment.That civil case was put on hold in February after the Justice Department intervened, claiming that the litigation could harm its criminal investigation.\--With assistance from Michelle F. Davis, Mark Burton and Ben Bain.To contact the reporters on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net;Joe Deaux in New York at jdeaux@bloomberg.netTo contact the editors responsible for this story: Jeffrey D Grocott at jgrocott2@bloomberg.net, David S. Joachim, Peter BlumbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    HSBC Bank Middle East Limited (UAE Branch) -- Moody's announces completion of a periodic review of ratings of HSBC Bank Middle East Limited

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of HSBC Bank Middle East Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

  • Financial Times

    Saudi Aramco chief says IPO to happen ‘very soon’

    Saudi Arabia is accelerating plans for the initial public offering of state oil giant Saudi Aramco, according to people familiar with the company, aiming to list a sliver of the business on its domestic exchange by the end of this year. The move would see it initially float just 1 per cent of the world’s largest company by revenues in Riyadh as Crown Prince Mohammed bin Salman pushes to have a faster listing. Plans to sell up to 5 per cent of Aramco were first announced by Crown Prince Mohammed — who is widely known as MBS — three years ago as the centrepiece of his plan to overhaul the kingdom’s economy and ultimately reduce its reliance on oil, but have faced frequent delays.

  • Reuters

    British banks seek tweaks to accountability rules

    Britain's new system of banker accountability has led to a "tangible" improvement in culture but modest changes are still needed, UK Finance said on Tuesday. The trade body for banks in Britain published the sector's first major appraisal of the senior managers and certification regime (SMCR) introduced in 2016 as part of reforms implemented after the 2007-09 financial crisis that left taxpayers to bail out lenders while few individual bankers faced punishment. SMCR makes it easier for regulators to pinpoint blame when things go wrong.

  • Saudi Aramco pursues IPO with local listing plan as lines up banks: sources
    Reuters

    Saudi Aramco pursues IPO with local listing plan as lines up banks: sources

    DUBAI/LONDON (Reuters) - Saudi Arabia plans a gradual listing of Aramco on its domestic market, sources familiar with the matter said on Monday, as it finalises the roles banks will play in the initial public offering (IPO) of the world's biggest oil company. The kingdom intends to list 1% of the state oil giant on the Riyadh stock exchange before the end of this year and another 1% in 2020, the sources said, as initial steps ahead of a public sale of around 5% of Aramco. Based on the indicated $2 trillion valuation that Saudi Aramco had hoped to achieve, a 1% float would be worth $20 billion, a huge milestone for the local stock market.

  • U.S. Banks Dominate After 2008 Crisis Amid Uncertain Growth Outlook
    Investopedia

    U.S. Banks Dominate After 2008 Crisis Amid Uncertain Growth Outlook

    The biggest U.S. banks have grown bigger since the 2008 financial crisis, and now analysts are downgrading their stocks as recessionary fears rise.

  • Bloomberg

    Beware Banks Dipping Into This Murky Trade

    (Bloomberg Opinion) -- A type of financial engineering that proved to be toxic during the financial crisis is slowly making a comeback as banks try to offset the risk of their borrowers not repaying their loans.Capital relief trades, or synthetic deals, are making a comeback — and Europe is about to refine the rules of the game. Getting those right will be crucial if we are to avoid a repeat of history.The products all have one thing in common: They provide a cosmetic improvement to a lender’s balance sheet. They shunt the risk of a borrower defaulting away from the lender to other players in the financial system — in much the same way that loans were securitized, or sliced up and sold, before the financial crisis.But these aren’t true disposals. Banks are, in effect, only taking out insurance against the risk of future losses by using derivatives. The actual loan remains on the books of the original bank — and the insurance allows the lender to reduce the amount of its own capital it has to set aside to cover the risk that the borrower defaults.The incentives for both buyers and sellers of credit protection are becoming more compelling than ever. On one hand, European banks are still struggling to get their capital buffers to the levels required of them, a goal that is being complicated by the ongoing squeeze negative interest rates are putting on profits.On the other hand, yield-hungry investors — from hedge funds to insurers — are only too keen to pick up some juicy returns in the era of, wait for it, negative interest rates.The deals aren’t cheap. They tend to yield more than Additional Tier 1 bonds, which can be converted into shares if a bank’s capital ratio falls below a certain level.But they do allow lenders to release a fair amount of equity without attracting public scrutiny. That’s just as well: With their valuations near record lows, banks would prefer not to raise fresh funds on the stock market.What is far from clear is the extent to which synthetic transactions actually transfer risk given their complexity. In deals that aren’t funded, or collateralized, the buyer of the protection (the lender) remains exposed to the risk that the counterparty may not be able to make good on the pledge to cover credit losses.Add to the mix a lack of transparency about where the risk is moving to in the financial system — the sellers of the protection tend to be more loosely regulated — and it will come as no surprise that watchdogs in the U.K. and the U.S. discourage these trades.Because most of the deals tend to be private, bilateral agreements between banks and investors, data on the breadth and depth of the market is sketchy. Anecdotally, those active in this pocket of structured finance say that there has been a steady pickup in business over recent years. The market may have seen as much as 25 billion euros ($28 billion) of protection being sold, insuring portfolios of as much as 350 billion euros, according to data compiled by Structured Credit Investor.Banks that have used risk-transfer trades include big lenders like HSBC Holdings Plc, Deutsche Bank AG and Banco Santander SA. But new European Union rules that came into effect this year are also attracting smaller firms to the market: Banca Popolare di Bari SCpA, an Italian lender whose capital is below minimum requirements, struck a deal with a hedge fund in July to provide capital relief on a 3 billion-euro portfolio of loans. The deal improved its common equity Tier 1 ratio by 100 basis points.The new rules allow banks using standardized risk models, as opposed to their own internal risk models, to gain capital relief from synthetic deals. And more regulatory changes are on the way.The European Banking Authority is preparing a consultation this month that could pave the way for synthetic deals to be granted the “simple, transparent and standardized” label that securitizations enjoy. This EU-wide seal of approval is designed to attract more investors willing to fund these deals. The EBA may also decide to apply that label to derivatives that are fully-funded with high quality collateral. That requirement cuts the risk that individual investors are stretching themselves beyond their means and may not be able to deliver on their commitments. The EBA may also push for more transparency, requiring parties to report trades to ESMA, the European securities watchdog.This is all a step in the right direction — but expect some pushback from big finance. Over the last year, insurers in particular have been getting into the market, and they don’t like the idea of posting collateral, much like they don’t when underwriting other risks. No doubt, if done right, synthetic securitizations should be part of the financial industry’s instruments. But regulators will need to ensure participants are exercising due prudence. More stringent rules on funding and transparency would go a long way to ensuring that.To contact the author of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Financial Times

    PPI scandal hits £50bn after claims rise at Lloyds and Barclays

    The cost of the payment protection insurance scandal to British banks hit £50bn on Monday, after Lloyds Banking Group and Barclays revealed billions of pounds of extra charges from a deluge of last-minute compensation claims. Lloyds warned it would have to set aside £1.2bn-£1.8bn to cover its own bill for a mis-selling scandal that dates back to the 1990s and has ensnared every big UK lender. Barclays said it would have to pay an extra £1.2bn-£1.6bn.

  • Financial Times

    Mortgage wars slash the price of a five-year fix

    this week as lenders unveiled new deals designed to lure borrowers away from rivals and retain the loyalty of existing customers. On Friday, Santander launched the lowest five-year fixed rate remortgage deal currently on the market with an interest rate of 1.55 per cent — a record low for the lender on a deal of this length. It came a day after HSBC announced a new 1.59 per cent five-year mortgage and remortgage deal, up to a maximum loan amount of £5m.

  • Boris Johnson ‘Would Rather Be Dead’ Than Delay Split: Brexit Update
    Bloomberg

    Boris Johnson ‘Would Rather Be Dead’ Than Delay Split: Brexit Update

    (Bloomberg) -- Follow @Brexit, sign up to our Brexit Bulletin, and tell us your Brexit story. Boris Johnson’s six-week-old premiership was thrown into yet more disarray after his brother quit the government in protest at his Brexit strategy. After three days of humiliation, the beleaguered prime minister launched a fightback in a speech in northern England, appealing directly to the public for an election to resolve Britain’s political crisis. He said he would “rather be dead in a ditch” than ask the European Union to delay Brexit again.Key Developments:Minister Jo Johnson resigns, citing tension between “family loyalty and the “national interest”Johnson making appeal for election Prime Minister will try again to persuade MPs to trigger an early general election on MondayHouse of Lords debating bill to block no-deal Brexit until FridaySplits appear in cabinet over Johnson’s tacticsThe pound rose 0.6%U.K. Said to Want to Unpick Deal (6:05 p.m.)Boris Johnson wants to remove several parts of the deal that was struck between the U.K. and EU in November, according to an official briefed on Wednesday’s negotiations in Brussels.David Frost, Johnson’s envoy, told the European Commission the U.K. wants to:Remove many articles of the contentious Irish border “backstop,” leaving only provisions on citizens’ rights, the common travel area and single electricity market on the island of Ireland. He didn’t say what the U.K. wanted in its place.Take out references in the political declaration on the future relationship to the “level playing field” which would keep the U.K. aligned to many of the EU’s standards. The EU says this is necessary for an ambitious free-trade agreementChange the way the agreement would be governed to take out references to the European Court of Justice. The EU said this would affect future police and judicial cooperation.Johnson Doubles Down on Push for Oct. 15 Election (6 p.m.)Boris Johnson pledged to hold a general election on Oct. 15, or even earlier, if opposition Labour Party leader Jeremy Corbyn wants that. The prime minister was responding to a question about whether he can be trusted not to shift the date of an election in order to take the U.K. out of the EU without a deal.“We want an election on October 15 and indeed earlier if he wants: :Let’s crack on with it,” Johnson said. “If he wants to avoid a no-deal Brexit, or if he wants to avoid a hard Brexit then he should believe in himself to go to Brussels on Oct. 17 to that crucial summit and sort it out.”The premier said the current situation is unsustainable. “I really don’t see how you can have a situation in which the British ability to negotiate is absolutely torpedoed by Parliament in this way, with powers of the British people handed over to Brussels so that we can be kept incarcerated in the EU without that actually being put to the people in the form of a vote,” he said.Johnson Glosses Over Split With Brother (5:35 p.m.)Johnson was asked about his brother Jo’s decision to quit the government earlier in the day, citing a conflict between family loyalties and the national interest (see 11:30 a.m.). He glossed over questions about whether he was acting in the national interest and said “people disagree about the EU.”“Jo doesn’t agree with me about the EU because it’s an issue obviously that divides families, that divides everybody,” said Johnson, before noting that his brother supports his wider agenda for the country.The premier also said he’d spoken to his brother earlier in the day, and praised his service as a minister for science and universities.Johnson: ‘Rather be Dead’ Than Delay Brexit (5:30 p.m.)Johnson said he would “rather be dead in a ditch” than ask for a delay in Brexit beyond Oct. 31.Answering questions after a speech in northern England, Johnson said he guaranteed that he wouldn’t ask for an extension from the EU while he is prime minister. But he dodged the question when he was asked if this meant he would resign rather than sign up to another delay.Johnson Makes Plea For Election (5:18 p.m.)Johnson is making a speech at a police academy in the north of England in which he is expected to make a plea for a general election.He will also reassert his pledge to recruit 20,000 police officers and trumpet his commitment to law and order as he gets a head start in the campaign for votes.But on a stage with dozens of police officers, his surroundings may be a gift to opponents who have accused him of staging a “coup” by suspending Parliament -- and to sketch writers likely to suggest he’s taking his commitment to “taking back control” to a new level.Johnson to Meet Varadkar on Monday (4:45 p.m.)Prime Minister Boris Johnson will travel to Dublin early on Monday to meet his Irish counterpart Leo Varadkar. He’ll return to London in time to be in the House of Commons for the key vote on a general election in the evening, his spokeswoman, Alison Donnelly, told reporters.U.K. Offers Banks $1.6b to Guarantee Brexit Loans (3:45 p.m.)Business Secretary Andrea Leadsom and other senior ministers met with lenders including HSBC, Lloyds and Barclays on Thursday to encourage them to support small and medium-sized companies through Brexit.The state-backed British Business Bank has 1.3 billion pounds ($1.6 billion) available to help banks lend money to businesses that need it, the Business Department said in an emailed statement. “Lenders must empower their SME customers to seize the huge variety of opportunities that lie ahead as we leave the EU on October 3,” Leadsom said.Leadsom was joined in the meeting by Michael Gove, the cabinet minister in charge of no-deal Brexit preparations, Economic Secretary to the Treasury John Glen and Small Business Minister Kelly Tolhurst. Other lenders included Bibby Financial Services, Virgin Money, Metro Bank, RBS, Santander and TSB.Johnson Calls Corbyn ‘Chlorinated Chicken’ Again (1:15 p.m.)Boris Johnson met U.S. Vice President Mike Pence in Downing Street, and used the opportunity -- while talking about a future free-trade deal -- to make the same joke as Wednesday when he called opposition Labour leader Jeremy Corbyn a chicken because he didn’t vote for an early general election .“We will make sure we do everything we can to increase free trade,’’ Johnson told Pence. “The National Health Service is not on the table as far as our negotiations go -- we’re not too keen on that chlorinated chicken either. We have a gigantic chlorinated chicken already here on the opposition bench.”Pence said the U.S. is “ready, willing and able” to offer the U.K. a trade deal.No-Deal Bill to Get Rapid Royal Assent (1:15 p.m.)Leader of the House of Commons Jacob Rees-Mogg said that the bill passed by MPs last night blocking a no-deal Brexit will get royal assent -- come into law -- “speedily” once it is debated for the final time in the Commons on Monday. The bill is currently in the House of Lords, and is due to return to the Commons, potentially with amendments, by Friday evening.Gove Sees Johnson Resignation as Unlikely (1:05 p.m.)Michael Gove, the Cabinet minister in charge of no-deal planning, is still speaking to the House of Commons committee on Brexit. Asked whether Boris Johnson would resign rather than ask for another delay, he said: “I don’t think the prime minister has any intention of resigning.”Under legislation working its way through Parliament, Johnson would be compelled to seek a delay to Brexit if by Oct. 19 he’s failed to secure a new Brexit deal or persuade MPs to back a departure without a deal. The premier said in reaction: “I refuse to do this.” Instead, he wants a general election before then -- but MPs refused to vote for one.That means if Johnson fails to secure an election, on Oct. 19 he’d be faced with the conundrum of either writing the letter or disobeying the law.Berger: Not Clear Where She’ll Stand for Lib Dems (1 p.m.)Luciana Berger, who joined the Liberal Democrats as an MP Thursday, said it was not yet clear if she will stand in the district of Liverpool Wavertree at the next election because of the party’s localized decision-making structure. It’s “not a decision for me,’’ she told Sky News. “I’d like to remain making a contribution to public life.’’Berger quit the Labour Party in February citing anti-Semitic bullying. She has remained as an independent candidate until today. The Liverpool Wavertree district has a strong Labour history and the Liberal Democrats have already selected a candidate for the area.MPs Will Vote Again on Early Election (12:50 p.m.)Leader of the House of Commons Jacob Rees-Mogg laid out a list of motions that will be debated in the House of Commons on Monday, culminating in a “motion relating to an early parliamentary general election.”It will be a second attempt by the government to force an early general election -- the next one currently isn’t due until 2022. Late on Wednesday, Johnson tried and failed to secure the 434 votes he needs -- two thirds of the House of Commons -- to call a ballot.Opposition parties declined to approve of an election because they want a bill to pass into law that would stave off a no-deal Brexit on Oct. 31. By Monday, that bill is likely to have passed into law, and the government’s calculation is that opposition parties may then swing behind his demand for a fresh election.Rees-Mogg also said that all bills needed for the U.K. to leave the European Union are in place.Gove Says New Brexit Deal Can Be Secured (12:35 p.m.)Cabinet Office Minister Michael Gove, who’s in charge of no-deal Brexit preparations, said the changes to the Brexit agreement being sought by Johnson are “eminently achievable.’’He said that while he would support former Prime Minister Theresa May’s deal if it came back to the house of Commons for another vote, the changes Johnson is seeking would mark a “material improvement” in the deal. They are to strip out the Irish backstop, and alter the political declaration to make clear Britain would be outside the customs union and single market. He also said the U.K. wants a free-trade agreement with the bloc.Gove was giving evidence to the House of Commons Exiting the European Union Committee. He earlier said that the Operation Yellowhammer document spelling out the potential impact of a no-deal exit that was leaked to the Sunday Times last month represented a “reasonable worst-case scenario,” and not a base-case prediction. He said there was no evidence to suggest former Chancellor of the Exchequer Philip Hammond could have been behind the leak.Business Secretary to Meet With Banks (11:40 a.m.)Business Secretary Andrea Leadsom will meet later Thursday with executives from the country’s main banks to discuss their support for small and medium-sized companies through Brexit, Prime Minister Boris Johnson’s spokesman, James Slack, told reporters in London.Johnson Wants Election Before Oct. 17 EU Council (11:35 a.m.)Prime Minister Boris Johnson will say in a speech this afternoon that he wants an election before the EU council meeting on Oct. 17, his spokesman James Slack said.“The prime minister believes we should have the election before the EU council and asks MPs to reflect on the sustainability of their position,’’ Slack told reporters. “Having chosen to introduce a bill that destroys our negotiating position,’’ he said, politicians “ must take responsibility for their actions.”Johnson’s Brother Quits Over Strategy (11:30 a.m.)Boris Johnson’s own brother, Jo Johnson, said he’s quitting the government and his seat in Parliament because of differences with the prime minister.“In recent weeks I’ve been torn between family loyalty and the national interest,” Jo Johnson said on Twitter. “It’s an unresolvable tension & time for others to take on my roles as MP & Minister. overandout.”The departure is a severe blow to the prime minister at a time when he’s alienated the moderate wing of his party by expelling 21 MPs on Tuesday because they voted against the government in order to stave off the risk of a no-deal Brexit on Oct. 31.Jo Johnson is a longstanding pro-European -- and had quit as a minister under former Prime Minister Theresa May because he believed the country needed a second referendum on Brexit. It raised eyebrows when he agreed to serve in his brother’s government -- because the premier was the figurehead of the Leave campaign in the 2016 referendum.Former Labour MP Berger Joins Liberal Democrats (11 a.m.)While Johnson has been expelling MPs from his party, Parliament’s fourth party, the Liberal Democrats keep growing. Luciana Berger, who quit Labour earlier in the year, said on Thursday she’s joined the Liberal Democrats.It’s the party’s second addition of the week, after Philip Lee’s defection from the Conservatives on Tuesday deprived Johnson of his majority. They now have 16 MPs.Javid Hopes Rebels Can Return (9:30 a.m.)Chancellor of the Exchequer Sajid Javid said he wants the 21 rebels expelled from the Conservative Party on Tuesday to be reinstated, though he also added Johnson had “no choice” but to fire them.Javid’s comments follow reports of an argument in cabinet this week in which a group of senior ministers, led by no-deal Brexit minister Michael Gove, demanded that Johnson should give the rebels a way back into the party. The prime minister refused.“I would like to see those colleagues come back at some point,” Javid told LBC radio. “They are not just my colleagues; these are my friends, they are good Conservatives.”Javid said it was right for Johnson to make Tuesday’s vote -- allowing Parliament to seize the legislative timetable in order to block a no-deal Brexit -- a matter of confidence in the government. Those who voted against it knew the “consequences,” he said.Swinson Wants Extension Before Election (9 a.m.)Liberal Democrat Leader Jo Swinson said she wants a general election only after an extension to Brexit has been agreed with Brussels.She said she believes Johnson wants an election before his exit deadline of Oct. 31 so he can take the U.K. out of the EU without a deal and blame Brussels for the failure to get an agreement.“He’s frightened of being found out,” she told Sky News. “He’s got an opportunity to go and get that great deal he said he could get and get it past Parliament, but he’s frightened to do that.”Caroline Nokes, one of the MPs expelled from the Tory Party on Tuesday, also said Johnson shouldn’t rush a national vote. “It’s really cynical to try to force through an election,” she said. “The tool we need in Parliament is time.”Labour ‘Consulting’ on Election Timing (Earlier)Labour Treasury Spokesman John McDonnell said the party is consulting with its own MPs and other parties over the best timing for a general election.While some want a national vote once a law against a no-deal Brexit is enacted, others want to wait until after a further delay to Jan. 31 has been secured before going to the country. None of the opposition parties have any confidence that Johnson will keep to his word, he said in media interviews on Thursday morning.“We have to be the adults in the room,” McDonnell said, after comparing Johnson to a toddler having a tantrum. Labour wants to keep “as much control as we possibly over the date of that election,” he told Sky News.Earlier:Johnson Boxed In Over Brexit as Bill Is Pushed Through LordsPound Rally Stalls After Lawmakers Reject Johnson’s Brexit PlansBrussels Edition: No Deal for Boris\--With assistance from Justin Sink, Ian Wishart and Thomas Penny.To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Kitty Donaldson in London at kdonaldson1@bloomberg.net;Jessica Shankleman in Wakefield at jshankleman@bloomberg.netTo contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Stuart Biggs, Mark WilliamsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Saverin-Backed Health Startup Seeks Funds at $250 Million Value
    Bloomberg

    Saverin-Backed Health Startup Seeks Funds at $250 Million Value

    (Bloomberg) -- CXA Group, a Singapore-based health service backed by Facebook co-founder Eduardo Saverin, is again hitting up investors. Founder Rosaline Chow Koo said her startup intends to start a new round of funding to try and raise at least $50 million at a $250 million valuation.The goal is still for CXA to achieve profitability mid- to late next year and unicorn status -- or a valuation of $1 billion or more -- within three years, Koo told Bloomberg’s Sooner Than You Think conference in Singapore. The company is seeking funding in the wake of securing long-term contracts with insurers and other customers, she added.“We have to go for another funding round,” she told the conference on Thursday. “We’re going back out only because we’ve signed very long-term contracts to actually be white-labeled by these firms globally.”CXA is the brainchild of Koo, a female entrepreneur who grew up poor in Los Angeles and started the business in 2013 as a personalized employee health and wellness benefits platform. The company now serves more than 600 companies and more than 400,000 employees in 20 countries.Revenue increased 65% in 2018 and is expected to double in 2019, Koo has said previously. In March, CXA raised $25 million by selling convertible debt to investors including HSBC Holdings Plc, Singtel Innov8 and Telkom Indonesia MDI Ventures. Prior to that, the startup had raised $33 million from two previous financing rounds.People in Asia are getting hit with chronic diseases earlier than in the West so they need flexibility in how they manage health-care costs, Koo has said. Her company allows employees to shift their traditional insurance money -- typically used for illness, injuries or death -- to combat these chronic diseases or to get mentally or physically healthier.CXA then tailors benefits to each individual’s life stage by using machine learning technology. The employees can use their e-wallet in the mobile app to select service providers and spend their allowance instead of getting one-size-fits-all benefits.Read more: First-Time Female Founder Nabs $25 Million to Expand Health Site(Updates with Koo’s comments from the third paragraph.)To contact the reporters on this story: Yongchang Chin in Singapore at ychin22@bloomberg.net;Yoolim Lee in Singapore at yoolim@bloomberg.net;Derek Wallbank in Singapore at dwallbank@bloomberg.netTo contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    HSBC Mexico, S.A. -- Moody's rates A3 and Aaa.mx HSBC México's certificados bursátiles; negative outlook

    In the first and second paragraph of the press release, the ticker for the fourth issuance of Certificados Bursátiles Bancarios was corrected to HSBC 19-2D. In the List of Affected Ratings, the ticker for the fourth issuance of Certificados Bursátiles Bancarios was corrected to HSBC 19-2D. Mexico, August 29, 2019 -- Moody's de México ("Moody's") assigned A3 and Aaa.mx long-term global and Mexican National Scale senior unsecured debt ratings to HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC's (HSBC México) proposed third (HSBC 19-2) and fourth (HSBC 19-2D) issuances of Certificados Bursátiles Bancarios.

  • Benzinga

    HSBC Leverages Voltron Trade Finance Platform To Further Joint BNP Paribas, Standard Chartered Blockchain Efforts

    HSBC completed its first yuan-denominated blockchain letter of credit transaction, according to a Sept. 2 Reuters report, taking a step forward in its use of the Voltron platform, developed jointly with other large financial institutions. “The exchange of the electronic documents was completed in 24 hours, compared to the typical five to 10 days for conventional document exchange,” an HSBC representative told Reuters. “We are hoping that we will have something by end of the year, maybe the first quarter of next year," said Ajay Sharma, HSBC regional head of global trade and receivables finance in the Asia-Pacific.

  • Big Bank Headcounts Aren’t Budging Despite Dramatic Job Cuts
    Bloomberg

    Big Bank Headcounts Aren’t Budging Despite Dramatic Job Cuts

    (Bloomberg) -- Pockets of job growth are offsetting some of the dramatic cuts at the world’s largest lenders.Bank of America Corp., Wells Fargo & Co., HSBC Holdings Plc and Credit Suisse Group AG added some 12,000 jobs in the first half of the year, according to data compiled by Bloomberg, meaning aggregate staff levels at 16 of the largest U.S. and European lenders haven’t budged even amid the high-profile slashing.Headcount is holding steady as firms including JPMorgan Chase & Co. and Charlotte, North Carolina-based Bank of America open hundreds of branches in new cities and states across the U.S., reversing a decade-long stretch of reductions. Meanwhile, the battle for technology talent continues to create demand for new positions. And even those firms that are cutting also have to beef up in areas such as compliance.Bank stocks have trailed broader markets across Europe and the U.S. amid concerns about declining and even negative interest rates and sluggish capital markets. That’s led executives even at firms that are boosting profits to strike an austere tone in an effort to show investors that they’re reining in costs. In contrast to many industries, banks are making cuts loudly and hiring with little fanfare.Barclays Plc said it eliminated 3,000 jobs in the second quarter, yet its total headcount is down by only 1,500 this year. The British bank has been ditching retail units around the world while focusing more on investment banking, where it has said it’s hiring.After reducing staff by a total of 800,000 people following the 2008 crisis, some of the largest banks resumed hiring in recent years as business stabilized and they seized market share from rivals. Still, the mix has shifted toward lower-paid staff while traders and investment bankers have seen their ranks -- and their pay -- shrink in the past decade.And the pain at some firms is just getting started. The job-cut announcements in the past few months have come mostly from European banks, some of which have yet to finish restructuring.Deutsche Bank AG, which has pledged to eliminate 18,000 positions in the next three years, has cut only about 900 so far this year. The German bank, which is notoriously slow in realizing its job-cutting targets, is just 11% below its peak staff level in 2010, while some rivals have cut theirs by more than half.HSBC’s staff rose by 2,500 in the first half of the year as it added in areas including information technology, wealth management and retail and digital banking. The firm said last month it would ax more than 4,000 positions, with a focus on senior executives.“We’re not cutting costs, but managing costs, so they grow slower than the growth in revenues,” HSBC spokesman Robert Sherman said.To contact the reporter on this story: Yalman Onaran in New York at yonaran@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    HSBC processes first blockchain letter of credit using Chinese yuan

    HSBC completed the first yuan-denominated blockchain-based letter of credit transaction, the bank said on Tuesday. HSBC, like many of its competitors, has been looking to use digital ledger technology, or blockchain, to streamline the traditionally paper-based and bureaucratic business of financing trade. As the first such transaction to use the Chinese currency, this deal marks a step forward in the use of the Voltron trade finance platform, developed by eight banks including BNP Paribas, and Standard Chartered as well as HSBC.

  • Cantonese opera features on new HK$100 banknotes launched by HSBC, Standard Chartered and Bank of China (Hong Kong) on Tuesday
    South China Morning Post

    Cantonese opera features on new HK$100 banknotes launched by HSBC, Standard Chartered and Bank of China (Hong Kong) on Tuesday

    The time-honoured traditions of Cantonese opera form the backdrop of a brand new set of HK$100 notes to be launched in Hong Kong on Tuesday.The city's note-issuing banks, HSBC, Standard Chartered and Bank of China (Hong Kong), have come up with their own designs to capture the spirit of the hugely popular ancient art form on the new-look banknotes.The notes, available at bank branches from Tuesday, bear characters and scenes evoking the celebrated musical stage shows, including a princess in a Chinese wedding gown and young lovers in a garden.Bank of China (Hong Kong)'s design features a single beautiful young lady in traditional opera costume. Photo: K. Y. Cheng alt=Bank of China (Hong Kong)'s design features a single beautiful young lady in traditional opera costume. Photo: K. Y. Cheng"Among the current series of banknote designs, I particularly like the HK$100 banknote because it features the Cantonese opera, which is a very traditional Hong Kong culture and popular performing art," said Norman Chan Tak-lam, chief executive of the Hong Kong Monetary Authority.In Hong Kong, it is the de facto central bank that decides security features of paper currency, but the three note-issuing banks came up with the designs.Chan hosted a launch ceremony for the new HK$100 banknotes, attended by the chief executives of the three lenders, at the Xiqu Centre in West Kowloon Centre. It featured a 20-minute live performance of Cantonese opera by local young artists.Romance featured heavily in the designs of the new banknotes.HSBC's note shows a couple of young lovers meeting in a Chinese garden, while Standard Chartered opted for a princess in a Chinese wedding gown with her new husband. BOCHK kept it simple, with a single beautiful young lady in traditional opera costume."Love stories are an important theme of many Cantonese operas, which is why we chose the young lovers as our theme," said Diana Cesar, chief executive of the Hong Kong office of HSBC, at the ceremony. Dispelling 5 common misconceptions about Cantonese opera"Cantonese opera continues to thrive in Hong Kong, attracting young people to learn and appreciate the art. This theme, beautifully captured in watercolour before being converted into engravings, expresses HSBC's connection with the Hong Kong community and our shared heritage."Standard Chartered's princess and husband are based on two young Hong Kong artists, according to Mary Huen Wai-yi, the bank's local chief executive."We want to show the spirit of the young artists. The show must go on, and we need young artists to continue the show," said Huen.BOCHK chose to focus on a single young lady as it wanted to show her beauty, said Yu Xin, senior art director of China Banknote Printing & Minting Corporation, who designed many of the bank's themed notes.The designer said the current banknotes have more security features than the ones in 2010.To celebrate its new HK$100 note, HSBC is launching an augmented reality filter in which the user's "selfie" photo taken on a smartphone is turned into a Cantonese Opera character.Cantonese opera was listed as an intangible cultural heritage of humanity by Unesco in 2009."This year marks the 10th anniversary of the Unesco inscription of Cantonese opera, making the launch of this banknote all the more meaningful," said Gao Yingxin, vice-chairman and chief executive of BOCHK.Forthcoming themes in the banknote series include butterflies which will adorn the HK$50 note and yam-cha " the tea and dim sum culture " that will appear on the HK$20. Both are due to be launched in early 2020.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.