HSBC to slash investment bank, 35,000 jobs in strategy overhaul
UNTV News • February 18, 2020 • 760
HSBC Holdings PLC said on Tuesday (February 18) it would shed $100 billion in assets, shrink its investment bank and revamp its U.S. and European businesses in a drastic overhaul that will mean 35,000 jobs cut over three years.
The bank, which has struggled to keep pace with leaner and more focused rivals, is seeking to become more competitive as it grapples with slowing growth in its major markets, the coronavirus epidemic, Britain’s European Union exit and lower central bank interest rates.
The virus has killed almost 1,900 people, overwhelmingly in mainland China, and infected more than 70,000, while its economic impact is spreading across the globe.
In the latest in a series of overhauls since the 2008 financial crisis, HSBC said it would merge its private banking and wealth businesses, axe European stock trading and cut U.S. retail branches as it seeks to remove $4.5 billion in costs.
Noel Quinn, interim chief executive, told Reuters HSBC’s headcount would likely go from 235,000 to closer to 200,000 over the next three years.
The restructuring, one of the largest undertaken by a blue chip lender for more than a decade, will be partly managed through natural attrition as people leave the bank, he said. (Reuters)
President Donald Trump urged Americans on Monday (March 16) to halt most social activities for 15 days and not congregate in groups larger than 10 people in a newly aggressive effort to reduce the spread of the coronavirus in the United States.
Announcing new guidelines from his coronavirus task force, the president said people should avoid discretionary travel and not go to bars, restaurants, food courts or gyms.
As stocks tumbled, Trump warned that a recession was possible, a development that could affect his chances of re-election in November. The Republican president said he was focused on addressing the health crisis and that the economy would get better once that was in line.
The task force implored young people to follow the new guidelines even though they were at lesser risk of suffering if they contract the virus. Older people, especially those with underlying health problems, are at the greatest risk if they develop the respiratory disease.
Reporters staggered their seating, sitting in every other seat in the White House briefing room, to follow social distancing measures.
Trump said the worst of the virus could be over by July, August or later. He called it an invisible enemy.
The president has taken criticism for playing down the seriousness of the virus in the early days of its U.S. spread. On Monday, when asked, he gave himself a good grade for his response.
“I’d rate it a 10. I think we’ve done a great job,” he said.
Trump said a nationwide curfew was not under consideration at this point.
Normally a cheerleader for the U.S. economy, he acknowledged the possibility of a recession while brushing off another dramatic decline on stock markets as investors worried about the virus.
“We’re not thinking in terms of recession, we’re thinking in terms of the virus. Once we stop, I think there’s a tremendous pent up demand, both in terms of the stock market and in terms of the economy,” Trump said. The president has long considered soaring stock markets to be a sign of his administration’s success.
Trump said the administration had talked regularly about domestic travel restrictions but hoped not to have to put such measures in place.
He said he thought it would still be possible for G7 leaders to meet at the Camp David retreat in Maryland in June. Trump upset European countries, which make up a large part of the G7, by instituting travel restrictions from European countries without consulting with them first. (Reuters)
A handful of people were seen on the streets of Milan on Wednesday morning (March 12) following stringent measures imposed to contain the coronavirus.
Shops and restaurants closed, hundreds of flights were cancelled and streets emptied across Italy on Tuesday (March 10), the first day of an unprecedented, nationwide lockdown imposed to slow Europe’s worst outbreak of coronavirus.
Just hours after the dramatic new restrictions came into force, health authorities announced the death toll had jumped by 168 to 631, the largest rise in absolute numbers since the contagion came to light on Feb. 21.
The total number of confirmed cases rose at a much slower rate than recently seen, hitting 10,149 against a previous 9,172, but officials warned that the region at the epicentre, Lombardy, had provided incomplete data.
The government has told all Italians to stay at home and avoid non-essential travel until April 3, radically widening steps already taken in much of the wealthy north, which is the epicentre of the spreading contagion. (Reuters)
The Russian lower house of parliament on Wednesday (March 11) gave its definitive approval to constitutional changes that allow Vladimir Putin to run for president again in 2024, something the current constitution forbids.
The 450-seat State Duma, the lower house of parliament, voted in favour of the changes in a third and final reading by 383 votes.
Nobody voted against, but 43 lawmakers abstained. Twenty-four lawmakers were absent.
Putin told parliament in televised comments on Tuesday he believed a constitutional amendment that would allow him to run for president again could be adopted if Russia’s Constitutional Court did not object.
Putin is required by the constitution to step down in 2024 when his second sequential presidential term ends. (Reuters)
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