HSBC Slows Hiring, Cuts Costs As Europe's Largest Bank Prepares For New CEO
Portfolio Pulse from Shivani Kumaresan
HSBC Holdings Plc (NYSE:HSBC) is implementing cost-cutting measures, including slowing hiring and reducing travel and entertainment expenses for investment bankers, as it prepares for a new CEO. The bank is also managing costs in anticipation of potential interest rate cuts by central banks. HSBC's stock has gained over 9% in the last 12 months, and investors can gain exposure through ETFs like Dimensional International Value ETF (NYSE:DFIV) and Trust For Professional Managers ActivePassive International Equity ETF (NYSE:APIE).
July 02, 2024 | 2:41 pm
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NEUTRAL IMPACT
Trust For Professional Managers ActivePassive International Equity ETF (NYSE:APIE) includes exposure to HSBC, which is cutting costs and preparing for a new CEO. The ETF's performance may be affected by HSBC's strategic decisions.
APIE's exposure to HSBC means its performance could be influenced by HSBC's cost-cutting measures and strategic changes. However, the overall impact on the ETF is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Dimensional International Value ETF (NYSE:DFIV) provides exposure to HSBC, which is implementing cost-cutting measures and preparing for a new CEO. The ETF's performance may be influenced by HSBC's strategic changes.
DFIV's exposure to HSBC means its performance could be influenced by HSBC's cost-cutting measures and strategic changes. However, the overall impact on the ETF is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
HSBC is slowing hiring and cutting costs in preparation for a new CEO and potential interest rate cuts. The bank is also managing expenses in its investment banking division, which has seen a downturn in dealmaking and capital markets activity.
HSBC's cost-cutting measures and preparation for a new CEO indicate a strategic shift to stabilize finances. However, the immediate impact on stock price is neutral as the market has already factored in these changes.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100