2/24/2020 - HSBC to Cut 35,000 Jobs and $100 Billion of Assets

LONDON— HSBC Holdings PLC said it would shed 35,000 jobs and cut business lines and customer relationships across the U.S. and Europe, the latest phase in a decade long retreat from global ambitions to focus on its Asian heartland.

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The planned overhaul of the U.K.-based bank, one of the world’s largest by assets, marks a significant step in a reorganization that started in the wake of the global financial crisis. Founded in Hong Kong in 1865, HSBC operates in 64 countries and territories but makes half of its revenue in Asia.

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HSBC said the scaling back will help free up $100 billion in risk-weighted assets to reinvest into the faster-growing Asia and Middle East regions.

wsj.com/articles/hsbc-holdings-2019-net-profit-plunged-53-11582001092

HSBC shifting focus from US/Europe to go to Asia

Cutting a plethora of jobs and investments in the process

Apple shares went up 60% within 6 months (200->320) but now because of the factories that are shut down and with Apple moving manufacturing to vietnam, it went back down a bit under 300.
With the CV scare in China, the economy isn't doing so well the government gave over 3k certificates to companies that are worth a total of $38B USD which is just more of the same. Their government has been financing everything for a while to try to stop or at least delay their incoming recession.

Just post in the stock and crypto thread dumbass

I'm not gonna pay to read that article but I'm curious to know where exactly they plan to invest in Asia.

Asia has growing markets but also stagnating ones that are gonna face more difficult times soon enough. India and Vietnam both have a lot of potential if that's what they mean though.

Stocks fall under economics but not all economics is related to stocks dumbass

My bad didn’t realize there was a paywall, I was surprised cause WSJ usually has one but didn’t for this article, maybe I was logged in without realizing

But yeah, they address corona virus concerns a little bit in the article:

Chairman Mark Tucker said HSBC has reduced its expectations for Asian economic growth in 2020 as a result of the coronavirus outbreak.

Also that there may be no evident benefits noted until 2023:

The benefits of the restructuring will be evident largely from 2023 onward, said Citigroup a***yst Ronit Ghose, who recommended that investors sell HSBC shares.

They do plan to expand in the Middle East as well

They also noted 12.5 billion of their pre tax profit came from Hong Kong, North America barely 1 billion, and actually experienced a 5 billion loss in Europe

So they are just following the money trail it seems lol

Did you know economists have predicted nine out of the last five recessions?

If y'all wanted it to be the economic thread it should've been named so, If you think stock and crypto are the only 2 variables then I understand why your post looks so stupid

Thanks fam.

Looks interesting but I expect a very big slowdown in China that will last longer than that but I also expect their country to be the most affected by the CV which is only implying their ongoing issues. With China being hurt you'll see the average of Asia going way down since they account for a big chunk of it.

Manufacturers that are going to relocated will benefit the most. Those who think the cost isn't worth it will struggle for a while and they might just sell.

Following the money trail is indeed the way to go but that's not the whole answer. Asia is too vague imo and they should try to find out why they're struggling in Europe and America because obviously they're not lacking potential customers from there.

Can't wait to be 2021 and see the immediate damages of the CV and then the following damages for the next 24-36 months

You’re literally posting about a single f***ing bank and it’s cost cutting plan which doesn’t even really matter in any macro sense lmfao

• This is an ECONOMICS thread and this topic relates to ECONOMICS

• There is a whole article in the WSJ related to it

• 35000 jobs cut, including 100 billion is assets, so it’s news like it or not

• The macro-implications have yet to be realized yet, and you don’t know that it doesn’t matter. It is a large retail bank significantly reducing its influence in major markets, and could be a sign of future complications in the regional and global economy

Not sure what you are arguing here lol

Lol I forgot how smug and ed Econ majors are

Have fun with this then instead of trying to have an active community discussing this stuff! Bye

This would be more discussed in the Stock Market Thread since you're dealing with an equity business and its implications

Again I don't know how you don't see that, unless of course you want to be the OP of your own thread so bad

I agree. I am surprised at such a big cut in America/Europe, and the confidence in Asia seems poorly timed due to recent events

We’ll see what the future brings. This was also mentioned in the article:

Interesting things going on over there, I wonder if this will be in a future documentary 10-15 years down the road about this decades recession lol

wow there is a whole article in the wall street journal about financial news guys this is BIG

ur boomer showin for this post

I’m not either though, I’m just not stupid

This 35 Years Dude .. Big Ballers Gonna Need Independence .

Books are Awesome .