HSBC to wind down parts of investment banking units in UK, Europe and US
HSBC is to shut down parts of its investment banking operations in the UK, Europe and the Americas as bosses continue their overhaul of the banking giant.
Georges Elhedery has overseen a significant shake-up of the London-based firm since taking over as chief executive last September.
The company told staff in a memo on Tuesday morning that it will wind down its mergers and acquisitions (M&A) advisory and equity capital markets services outside of Asia and the Middle East.
It has not disclosed how many workers will be affected by the changes.
As part of our ongoing efforts to simplify HSBC and increase leadership in our areas of strength, we are finalising a review of our investment banking business.
HSBC spokesman
The lender said it will start holding talks with clients in the coming days about shutting down these operations and will finish current deals.
In the memo, the company added that its 'intention is to move to a more competitive, scalable, financing-led model'.
The bank will maintain its other operations in western markets.
Its latest financial results showed that its global investment banking operations represented 6% of total revenues for the latest half-year.
An HSBC spokesman said: 'As part of our ongoing efforts to simplify HSBC and increase leadership in our areas of strength, we are finalising a review of our investment banking business.
'We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East and will begin to wind down our M&A and equity capital markets activities in the UK, Europe, and the US, subject to local legal requirements.'
It comes days after HSBC confirmed plans to shut down its global payments app Zing a year after launch, putting hundreds of jobs at risk.
Zing was launched in the UK in January 2024 for people to hold funds in different currencies, send money internationally, or spend in the UK and abroad through an app and a multi-currency debit card.
The closure is understood to be putting up to about 400 jobs at risk, including a significant number of non-HSBC staff contracted for customer support roles.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
17 minutes ago
- Reuters
Aluminium producers in the US win from Trump's tariffs
LONDON, June 9 (Reuters) - Century Aluminum, the largest primary aluminium producer in the U.S., and top recycler Matalco will be among the big winners from President Donald Trump's higher tariffs on imports of the metal as domestic prices surge, four industry sources said. However, some sector players are worried that Trump's move from June 4 to hike the tariffs to 50%, from 25%, could push prices so high that demand starts to weaken. Higher revenues for U.S. aluminium producers and recyclers are expected mainly due to the way the market prices the metal key for construction, power and packaging industries. The companies typically charge customers the London Metal Exchange aluminium price plus a physical market premium to cover other costs including freight and taxes. The so-called Midwest premium hit a record 62.5 U.S. cents a lb, or $1,377 a metric ton, on Friday. Since Trump was elected for his second term in November, it has surged nearly 190%. Consultancy Harbor Aluminum said the premium would have to rise to 70 cents a lb, or $1,543 a ton, to fully reflect the 50% tariff. Century (CENX.O), opens new tab, in which London-listed miner Glencore (GLEN.L), opens new tab is the top shareholder with a stake of more than 40%, declined to comment beyond a statement it issued last week, in which it welcomed the 50% tariff. Century produced 690,000 metric tons of aluminium last year. Miner Rio Tinto (RIO.L), opens new tab, ( opens new tab, which owns a 50% stake in Matalco, declined to comment, speaking on behalf of the U.S. company, which produced 528,000 tons of recycled or secondary aluminium last year. U.S. imports of scrap aluminium remain free of tariffs, but aluminium recycling needs primary metal to maintain properties of alloys used to make industrial goods. Alcoa (AA.N), opens new tab, one of the world's largest aluminium producers, said its U.S. smelters would also benefit from the tariffs, and that its active production capacity in the United States totalled 291,000 tons. Alcoa's global aluminium output was 2.215 million tons last year. Constellium, which has a capacity to recycle 360,000 tons of aluminium annually in the United States, said it supported the original 25% tariff because it helped address unfair trading practices by non-market economies. "However, we are concerned that increasing the tariff beyond this level could have unintended consequences - potentially disrupting the aluminum supply chain and impacting demand," it added. Higher aluminium costs are likely to be passed on to consumers, which analysts expect will eventually hit demand. With its local primary aluminium industry in decline for years, the U.S. relies on imports of large amounts of unwrought aluminium and alloys - more than 3.9 million tons last year, according to U.S. government data. The U.S. produced more than four million tons of aluminium last year, most of it recycled material, according U.S. Geological Survey. Industry sources expect U.S. scrap aluminium imports to climb as recycling companies take advantage of high premiums to ramp up production. Already U.S. scrap aluminium imports have started to rise. Data from information provider Trade Data Monitor shows U.S. scrap aluminium imports rose more than 30% to 201,968 tons in the first quarter of this year from the same period in 2024. Traders said the high Midwest premium would allow recyclers to bid more for scrap than buyers outside the United States, as they can sell aluminium locally at a higher price. LME aluminium is trading around $2,500 a ton, while the duty-paid premium in Europe has dropped more than 50% to $170 a ton since January on expectations some global producers will divert primary metal to Europe to avoid U.S. tariffs.
Times
24 minutes ago
- Times
Business live: Starmer pledges extra £1bn to boost UK tech power
Sir Keir Starmer said this morning that the government would invest an extra £1 billion worth of funding to scale up the UK's computing power by a factor of twenty. Opening London Tech Week, the prime minister said: 'We are determined to be the best state partner for tech entrepreneurs anywhere in the world.' In January, the government set out its plan for AI, committing to 'set out, within six months, a long-term plan for the UK's AI infrastructure needs'. Tech companies are hoping for more news in Rachel Reeves's spending review this week, including on so-called AI growth zones, which would speed up planning approval and clean energy for data centres. Jensen Huang, the chief executive of Nvidia, has called Britain's AI sector 'the envy of the world' but said it is missing one 'surprising' thing: AI infrastructure (Katie Prescott reports). Speaking to Sir Keir Starmer and Baroness Gustafsson, the minister for investment, at the opening of London Tech Week this morning, Huang said: 'If you're in the world of AI, you do machine-learning. You can't do machine-learning without a machine and so the ability to build these AI supercomputers here in the UK will naturally attract more start-ups.' China and Britain should maintain sustained, stable and healthy development of economic relations, the Chinese vice-premier He Lifeng has told the chancellor Rachel Reeves in London, according to a report on the state-run broadcaster China Central Television (CCTV). He is meeting the chancellor while he is in London for a second round of trade talks with top US officials. The talks come as the Chinese owner of British Steel is in an entrenched stand-off with UK ministers over a compensation claim for more than £1 billion. Jingye, owner of the Victorian steelworks in Scunthorpe, is said to want a nine-figure payout from British taxpayers. A majority stake in the British skincare brand Medik8 has been sold to L'Oréal, the French cosmetics giant. The deal bolsters the French company's position in the fast-growing dermatological skincare market. The stake is being sold by the UK-based private equity firm Inflexion. No financial details were disclosed. L'Oréal said: 'This acquisition further strengthens L'Oréal's luxe portfolio, adding a premium science-backed skincare brand with a proven track record of success, with strong potential for global growth.' Medik8 was founded in 2009 by the British scientist Elliot Isaacs. Trade talks in London today between the US and China are expected to attempt to revive a preliminary trade agreement reached in Geneva last month, which broke down after President Trump accused China violating the agreement and threatened to impose triple-digit tariffs on Chinese goods. Beijing's leverage is its near-stranglehold on rare earth minerals that are critical to many high-tech sectors. Kevin Hassett, head of the National Economic Council at the White House, said on CBS's Face the Nation on Sunday: 'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April and we don't want any technical details slowing that down.' The UK has retained its lead as Europe's most attractive destination for foreign direct investment (FDI) into financial services, despite a 32 per cent drop in activity. EY's latest Attractiveness Survey for financial services shows the country recorded 73 projects in 2024. Germany was second with 32 projects, down 16 per cent year-on-year, while France was third with 30 projects, down 23 per cent over the year. Total financial services FDI projects across Europe fell from 329 in 2023 to 293 in 2024, a year-on-year decrease of 11 per cent. Shares in the advertising giant WPP are down after news that Mark Read is to step down as chief executive. The chipmaker Alphawave, which is not in the FTSE 100, has jumped 20 per cent after agreeing to a takeover by Qualcomm. Here are the main risers and fallers on the FTSE 100. The FTSE 100 has opened largely flat — up just 10 points, or 0.1 per cent, at 8,849.42. The more UK-focused FTSE 250 is unchanged at 21,157.77. The pound is at $1.3566 against the dollar and €1.1876 against the euro. The ten-year gilt yield is down slightly at 4.62 per cent. A weaker dollar has lifted the price of gold to $3,323.78 an ounce, up 0.4 per cent. Revolution Beauty has said that the billionaire retail entrepreneur Mike Ashley's Frasers Group was among several parties conducting due diligence for a potential takeover. The struggling British company, which sells make-up and cosmetics online and through concessions in stores, put itself up for sale last month. Boohoo, the online retailer which has renamed itself Debenhams, has a 27 per cent stake, according to FactSet. Frasers also has a stake in Boohoo. Revolution Beauty said: 'There can be no certainty that Frasers' interest will result in a firm offer.' The London-listed chip designer Alphaware is recommending that shareholders accept a $2.4 billion takeover bid from the US chipmaker Qualcomm. Alphawave investors will receive 183p per share under the deal, a more than 90 per cent premium to its closing price before Qualcomm disclosed its interest in the company. Arm Holdings, the US-listed, Cambridge-based chip designer, was also said to have been interested in Alphawave. Mark Read is to step down as chief executive of WPP at the end of the year. In a brief stock exchange statement the advertising giant said that a search for a successor is under way. 'After seven years in the role, and with the foundations in place for WPP's continued success, I feel it is the right time to hand over the leadership of this amazing company,' Read said. • WPP boss to leave amid industry turmoil created by AI His departure follows the appointment of Philip Jansen as chairman of WPP at the start of the year. WPP shares have fallen 32 per cent since the start of the year and are down 56 per cent since Read's appointment in September 2018. The FTSE 100 has risen 18 per cent over the period. Markets have been buoyed by optimism that the United States and China will ease trade tensions when representatives of both nations meet in London on Monday. Shares on Asian stock markets bounced, with Tokyo's Nikkei 225 index and Hong Kong's Hang Seng both gaining 1 per cent. Markets in Europe are expected to be more subdued. Scott Bessent, the US Treasury secretary, and other top Trump aides are expected to meet their Chinese counterparts at an undisclosed venue in London for talks to resolve the trade war between the nations. It comes as data from China showed export growth slowed to a three-month low in May, hit by US tariffs, and amid protests in Los Angeles over President Trump's immigration policies. • The government will deliver just over half of the 1.5 million new homes it has promised to build by 2029, according to Savills, the property agent, and there are fears the spending review this week could exacerbate the housing crisis.• The pharmaceutical industry has rejected a government offer to cut the cost of a contentious NHS drug pricing scheme as 'falling significantly short'• Nvidia has unveiled a slew of UK partnerships to boost artificial intelligence capabilities as concern increases that Britain is falling behind in the race to develop the technology. The $3.5 trillion multinational chip producer said it would work with the government to help businesses make use of AI.• Economic data released this week is expected to show wage growth moderated and that joblessness rose in the spring while the economy contracted.
The Independent
28 minutes ago
- The Independent
Matalan to revamp store chain with new openings in £25 million investment
Matalan has unveiled plans to open new stores and refurbish shops across the UK as part of a £25 million investment into the fashion and homeware chain. The value retailer said physical shops remained 'at the centre' of its transformation programme. It is set to open 10 new and relocated stores this year, expanding in regions including London, Essex, Hampshire, and Northern Ireland. The investment will also go towards upgrading 30 existing shops across the country. The refurbishments mean customers will see changes such as more defined departments, services like fitting rooms and tills relocated to a single area, and modernised checkout areas in some shops with faster self-service tills. Matalan also revealed it would be launching a new app for shopping and loyalty rewards. Newly-revamped stores in locations including Croydon, Bristol, and Dumfries have benefited from a stronger-than-expected jump in sales, the company said. Matalan has about 265 shops across the UK and overseas. It came under new ownership at the start of 2023 after a group of lenders took control from founder John Hargreaves, who set up the company in 1985. The group, led by Invesco, Man GLG, Napier Park and Tresidor, took the reins of the fashion business after it had launched a sales process. Matalan said it secured £25 million from its investors last month which it was using to fund the revamp of its store estate. James Dorling, Matalan's property director, said: 'Matalan storefronts have been a fixture of UK communities for 40 years, so it is only right that bricks-and-mortar retail remains at the centre of our transformation programme. 'With 10 exciting new store openings and extensive refurbishments across our estate, this investment marks a step-change in our strategy – creating a better, more seamless shopping experience for our loyal existing customers, while also introducing the Matalan brand to new consumers.'
