Latest news with #AegonAssetManagement
Bloomberg
3 days ago
- Business
- Bloomberg
Bloomberg Daybreak Asia: Trump Tariff Deadline Rattles APAC Markets
Asian shares edged lower at the Wednesday open after President Donald Trump said he won't delay the July 9 deadline for imposing higher levies on trading partners, ratcheting up trade tensions yet again. Back in June, China and the US reaffirmed their May trade truce, sustaining a rebound in trade flows and propelling China's economic momentum. Bloomberg Economics says consumption also showed signs of revival, but the trend is unlikely to last without continuous policy efforts that promote domestic demand. We take a look at the state of the Chinese economy with Shehzad Qazi, Chief Operating Officer and Managing Director at China Beige Book International. Plus - US job openings hit the highest since November, largely fueled by leisure and hospitality, and layoffs declined. Federal Reserve policymakers have consistently characterized labor-market conditions as strong in recent weeks. Fed Chair Jerome Powell repeated that the US central bank probably would have cut rates further this year absent Trump's expanded use of tariffs, although he didn't rule out easing at its meeting later this month. We get market insights from Jeff Grills, Head of EM Debt at Aegon Asset Management.
Bloomberg
02-04-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: Tariff Clock Counts Down
President Donald Trump's deliberations over his plans to impose reciprocal tariffs are coming down to the wire, with his team said to be still finalizing the size and scope of the new levies he is slated to unveil on Wednesday afternoon. Asian stocks edged lower as traders grapple with how to position themselves ahead of the planned 4pm Eastern time White House announcement. We speak with David Finnerty, Bloomberg FX and Rates Strategist in Singapore. Plus - how those new tariffs may stand to affect the risk landscape in emerging markets. We get some perspective from Jeff Grills, Head of EM Debt at Aegon Asset Management.
Zawya
17-02-2025
- Business
- Zawya
HSBC investors back CEO's investment banking retrenchment
LONDON/HONG KONG: Investors in HSBC are backing management attempts to shutter parts of its investment bank, even as U.S. President Donald Trump's deregulatory agenda fuels hopes for a boom in capital markets activity. Four shareholders, including two of the 20 largest, said last month's decision to axe HSBC's mergers and equity capital markets teams in the Americas and Europe made sense as the bank focuses on its strongest franchises in its core Asian markets. Once a sprawling behemoth spanning more than 100 countries, HSBC has spent the last decade slowly shrinking its global footprint and exiting low-return businesses. As U.S. tariffs threaten to crimp the earnings power of major trade finance providers like HSBC, pressure is mounting on CEO George Elhedery to shift group capital into Asian economies with healthy regional trading prospects that may be less vulnerable to global trade snags, the investors said. "Geopolitics are making life more difficult for lots of businesses that operate globally," said Alex Potter, investment director for European equities at HSBC shareholder abrdn , a top-30 investor. "Even with multiple purchases over decades, almost no foreign banks have achieved meaningful market share in U.S. equity investment banking," he added. Elhedery is set to unveil further details of his vision for HSBC when it reports full-year results on February 21, including cost savings from his restructuring, one bank insider said. Unconfirmed media reports put those savings at between 1.2 billion and 3 billion pounds ($1.5-$3.8 billion), partly achieved through further cuts to management roles and units close to those already scrapped, a second bank insider said. HSBC declined to comment. The bank's London-listed shares are up 11.5% year-to-date, after rising by a fifth in 2024. Sajeer Ahmed, global equities portfolio manager at HSBC investor Aegon Asset Management, said he felt bosses were meticulously analysing each business, with a view to delivering a sustainable return on tangible equity (ROTE) of around 16%. "Many U.S. banks with a similar return profile are trading at a significantly higher price-to-book multiple," he told Reuters. For example, HSBC, with a 19.3% ROTE in the first 9 months of 2024, traded at a multiple of 1.04 on Friday, less than half the 2.16 for Morgan Stanley which returned 18.8% last year. "The sharp switch to profitability from empire building is Elhedery's attempt to tackle that valuation differential over time," Ahmed said. A forecast complied by the bank shows analysts expect full-year profit of $31.6 billion, little changed after a 78% jump to $30.3 billion in 2023. INTERNAL STRIFE There are reasons for Elhedery to move quickly. The optics of ousting rainmakers and IPO advisors could be harder to manage as 2025 unfolds, with Amrit Shahani, a partner at consulting firm BCG Expand, saying such teams are expected to enjoy double-digit growth on the back of Trump-fuelled deregulation and consolidation this year. Staff in affected businesses are concerned about their jobs, while those in related divisions fear they may be next, denting morale, two more sources at the bank said. "I don't think this is about having to make a difficult choice between serving China versus serving the West," said Alex Marshall, managing partner at strategic growth consultancy CIL. "Asian capital is a significant growth story. This is a huge prize, and HSBC has done well out of it. Europe's share of global capital flows by contrast is pretty limp." (1 British pound = $1.2555)
Yahoo
16-02-2025
- Business
- Yahoo
HSBC investors back CEO's investment banking retrenchment
By Sinead Cruise, Lawrence White and Selena Li LONDON/HONG KONG (Reuters) - Investors in HSBC are backing management attempts to shutter parts of its investment bank, even as U.S. President Donald Trump's deregulatory agenda fuels hopes for a boom in capital markets activity. Four shareholders, including two of the 20 largest, said last month's decision to axe HSBC's mergers and equity capital markets teams in the Americas and Europe made sense as the bank focuses on its strongest franchises in its core Asian markets. Once a sprawling behemoth spanning more than 100 countries, HSBC has spent the last decade slowly shrinking its global footprint and exiting low-return businesses. As U.S. tariffs threaten to crimp the earnings power of major trade finance providers like HSBC, pressure is mounting on CEO George Elhedery to shift group capital into Asian economies with healthy regional trading prospects that may be less vulnerable to global trade snags, the investors said. "Geopolitics are making life more difficult for lots of businesses that operate globally," said Alex Potter, investment director for European equities at HSBC shareholder abrdn, a top-30 investor. "Even with multiple purchases over decades, almost no foreign banks have achieved meaningful market share in U.S. equity investment banking," he added. Elhedery is set to unveil further details of his vision for HSBC when it reports full-year results on February 21, including cost savings from his restructuring, one bank insider said. Unconfirmed media reports put those savings at between 1.2 billion and 3 billion pounds ($1.5-$3.8 billion), partly achieved through further cuts to management roles and units close to those already scrapped, a second bank insider said. HSBC declined to comment. The bank's London-listed shares are up 11.5% year-to-date, after rising by a fifth in 2024. Sajeer Ahmed, global equities portfolio manager at HSBC investor Aegon Asset Management, said he felt bosses were meticulously analysing each business, with a view to delivering a sustainable return on tangible equity (ROTE) of around 16%. "Many U.S. banks with a similar return profile are trading at a significantly higher price-to-book multiple," he told Reuters. For example, HSBC, with a 19.3% ROTE in the first 9 months of 2024, traded at a multiple of 1.04 on Friday, less than half the 2.16 for Morgan Stanley which returned 18.8% last year. "The sharp switch to profitability from empire building is Elhedery's attempt to tackle that valuation differential over time," Ahmed said. A forecast complied by the bank shows analysts expect full-year profit of $31.6 billion, little changed after a 78% jump to $30.3 billion in 2023. INTERNAL STRIFE There are reasons for Elhedery to move quickly. The optics of ousting rainmakers and IPO advisors could be harder to manage as 2025 unfolds, with Amrit Shahani, a partner at consulting firm BCG Expand, saying such teams are expected to enjoy double-digit growth on the back of Trump-fuelled deregulation and consolidation this year. Staff in affected businesses are concerned about their jobs, while those in related divisions fear they may be next, denting morale, two more sources at the bank said. "I don't think this is about having to make a difficult choice between serving China versus serving the West," said Alex Marshall, managing partner at strategic growth consultancy CIL. "Asian capital is a significant growth story. This is a huge prize, and HSBC has done well out of it. Europe's share of global capital flows by contrast is pretty limp." (1 British pound = $1.2555) (Additional reporting by Lananh Nyguyen in New York and Amy Jo Crowley in London; Editing by Kirsten Donovan) Sign in to access your portfolio
Reuters
16-02-2025
- Business
- Reuters
HSBC investors back CEO's investment banking retrenchment
LONDON/HONG KONG, Feb 17 (Reuters) - Investors in HSBC (HSBA.L), opens new tab are backing management attempts to shutter parts of its investment bank, even as U.S. President Donald Trump's deregulatory agenda fuels hopes for a boom in capital markets activity. Four shareholders, including two of the 20 largest, said last month's decision to axe HSBC's mergers and equity capital markets teams in the Americas and Europe made sense as the bank focuses on its strongest franchises in its core Asian markets. Once a sprawling behemoth spanning more than 100 countries, HSBC has spent the last decade slowly shrinking its global footprint and exiting low-return businesses. As U.S. tariffs threaten to crimp the earnings power of major trade finance providers like HSBC, pressure is mounting on CEO George Elhedery to shift group capital into Asian economies with healthy regional trading prospects that may be less vulnerable to global trade snags, the investors said. "Geopolitics are making life more difficult for lots of businesses that operate globally," said Alex Potter, investment director for European equities at HSBC shareholder abrdn , a top-30 investor. "Even with multiple purchases over decades, almost no foreign banks have achieved meaningful market share in U.S. equity investment banking," he added. Elhedery is set to unveil further details of his vision for HSBC when it reports full-year results on February 21, including cost savings from his restructuring, one bank insider said. Unconfirmed media reports put those savings at between 1.2 billion and 3 billion pounds ($1.5-$3.8 billion), partly achieved through further cuts to management roles and units close to those already scrapped, a second bank insider said. HSBC declined to comment. The bank's London-listed shares are up 11.5% year-to-date, after rising by a fifth in 2024. Sajeer Ahmed, global equities portfolio manager at HSBC investor Aegon Asset Management, said he felt bosses were meticulously analysing each business, with a view to delivering a sustainable return on tangible equity (ROTE) of around 16%. "Many U.S. banks with a similar return profile are trading at a significantly higher price-to-book multiple," he told Reuters. For example, HSBC, with a 19.3% ROTE in the first 9 months of 2024, traded at a multiple of 1.04 on Friday, less than half the 2.16 for Morgan Stanley (MS.N), opens new tab which returned 18.8% last year. "The sharp switch to profitability from empire building is Elhedery's attempt to tackle that valuation differential over time," Ahmed said. A forecast complied by the bank shows analysts expect full-year profit of $31.6 billion, little changed after a 78% jump to $30.3 billion in 2023. INTERNAL STRIFE There are reasons for Elhedery to move quickly. The optics of ousting rainmakers and IPO advisors could be harder to manage as 2025 unfolds, with Amrit Shahani, a partner at consulting firm BCG Expand, saying such teams are expected to enjoy double-digit growth on the back of Trump-fuelled deregulation and consolidation this year. Staff in affected businesses are concerned about their jobs, while those in related divisions fear they may be next, denting morale, two more sources at the bank said. "I don't think this is about having to make a difficult choice between serving China versus serving the West," said Alex Marshall, managing partner at strategic growth consultancy CIL. "Asian capital is a significant growth story. This is a huge prize, and HSBC has done well out of it. Europe's share of global capital flows by contrast is pretty limp." (1 British pound = $1.2555) here.
