HSBC Holdings (HSBA) is plotting an overhaul that could see up to 10,000 jobs axed. Noel Quinn, the lender’s interim boss who is vying to win the role on a full-time basis, will unveil the shake-up in February as he seeks to cut costs across the sprawling global bank. In the firing line will be parts of HSBC’s US division, its retail banking operations in France and about 10,000 jobs. In the US, it is understood that HSBC is considering offloading its west coast branches. Based in cities such as Los Angeles, Seattle and San Francisco, this arm of HSBC serves a large community of ex-pats from countries such as China and Mexico. But it is less tightly focused and performs more poorly than the lender’s east coast branches, which date back to HSBC’s acquisitions of Marine Midland and Republic in the 1980s and late 1990s respectively. The east coast operations, thanks to Republic, include a strong private wealth division which HSBC thinks will remain useful.
The boss of Smiths Group (SMIN) is poised to leave the company after it spins off its £2billion medical arm, it has been claimed. Andy Reynolds Smith, 53, could stand down from his role after the deal is completed in the first half of next year. The de-merger would be a ‘natural moment’ for Smith, who has been chief executive for four years, to stand aside, a source told the Sunday Times.
Almost £4billion has flowed back into UK equity funds after Boris Johnson’s election triumph, according to new data. The cash boost comes after analysts said certainty around Brexit had been restored following the decisive Conservative victory earlier this month. During the campaign and the week afterwards, £3.8billion of investment was ploughed into London-listed stocks, EPFR Global said. It was the strongest wave of investment since the second half of 2015, before the EU referendum.
MIDAS SHARE TIPS: Computer gamer leads the winners in our 2019 tips. Midas verdict: Team17 (TM17) shares have had a great run, reflecting business success and a growing City fan club. At £3.82, investors may wish to sell a chunk of stock and bank some profits, but they should hold at least half their shares, as Bestwick is a shrewd operator in a fast-growing industry. Midas verdict: Shares in 3i Group (III) have done well but the private equity environment is tough. Competition for new deals is fierce and global economic prospects are uncertain. At £11.03 the stock seems fully valued, so investors should reduce their holdings. Midas verdict: This has been a sorry tale. Shareholders have every right to feel aggrieved. Iclaprim may finally gain approval but Motif Bio (MTFB) will need a new owner with deep pockets. At 0.4p the shares are going nowhere. I am very sorry for having recommended them.
Britain’s economy is set to grow by less than 2% next year and house price rises could take up to six months to kick in, analysis by The Mail on Sunday shows. Economists said that while Britain may well be free to make its own trade deals after January 31, there is no cutting loose from a world economy facing multiple sources of instability. The experts said the US-China trade war and the potentially fraught negotiations over the UK-European Union agreement on market access would act as barriers to growth in 2020. They warned that the talks between London and Brussels would be conducted against the backdrop of an ‘overdue recession’ for advanced economies. Forecasts for UK GDP growth ranged from a pessimistic 0.5% – suggested by the financial information group IHS Markit – to the more upbeat 2% offered by Liverpool Macro Research. The International Monetary Fund prediction for the UK was 1.4% in 2020 – below the 1.7% expected for the US but on a par with the 1.4% forecast for the eurozone.
