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HSBC CEO Says Bankers Generating 20% of London Revenue May Move

idpickering
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HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24018

Postby idpickering » January 18th, 2017, 7:21 am

"HSBC Holdings Plc Chief Executive Officer Stuart Gulliver said trading operations that generate about 20 percent of revenue for the lender’s investment bank in London may move to Paris, quantifying some of the aftershocks for the U.K. after Brexit.

“Activities specifically covered by EU legislation will move, and looking at our own numbers, that’s about 20 percent of revenue,” Gulliver said in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland, with John Micklethwait. The bank confirmed that he was referring to the lender’s global banking and markets operations in the U.K. capital."

https://www.bloomberg.com/news/articles ... e-may-move

disc - I hold.


grimer
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24307

Postby grimer » January 18th, 2017, 11:33 pm

This is clearly just an extension of project fear. All the bigwigs have got together in Davos and are releasing coordinated announcements to feed the media scare stories about Brexit. They never seem to learn that their agenda (hidden behind lies/fake news) isn't desired by the majority of people. Not only that, people are numb to these relentless propaganda campaigns - the predictions of which (always doom, unless we tow the(ir) line) never come true - e.g. We're doomed unless we join the ERM. We're doomed unless we join the Euro. We're doomed unless we reject Brexit. We're doomed unless we stay in the single market. We're doomed unless we stay in the customs union.

Perhaps if they presented a factual and balanced argument people might listen, but they seem perplexed that their relentless, unanimous, negative propaganda doesn't have any effect. Rather than changing tack, they simply continue with the same narrative and expect public opinion to suddenly shift in their favour.

/rant

Moderator Message:
Moving to the banking board from HYP Practical more apt board. Raptor.

PeterGray
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24371

Postby PeterGray » January 19th, 2017, 10:03 am

This is clearly just an extension of project fear

Of course, anyone who suggests that everything in Brexitland may not be rosy is a fear monger, while people who promise absurd sums of money pouring into the NHS, having cake and eating it etc after Brexit mustn't be challenged.

Yes, you always need to look at people's motivations for saying what they do, on both sides. But why would the CEO of a major bank not be thinking seriously about moving "Activities specifically covered by EU legislation" so it stays in the EU. I'd think many shareholders would take a pretty dim view if he didn't.

Peter

dspp
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24402

Postby dspp » January 19th, 2017, 11:32 am

Moderator Message:
Please, I appreciate this has been moved from HYP Practical to Banking Sector. If this is turns towards a banking sector investment-related discussion then it can stay here. If it is a Brexitfest then it will be moved along again down in to Polite Discussions. Thank you for understanding & co-operating. regards, dspp

dspp
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24405

Postby dspp » January 19th, 2017, 11:43 am

Right, having said the below let's try taking this as an investment matter. Let's assume HSBC and UBS et al are not bluffing (I'm assuming we are well beyond that stage now) and are going to move some staff out of London to - in those cases - Paris & Frankfurt. Does this affect the valuation of either of those two companies ? Which banks etc will be advantaged and/or disadvantaged as a result of this. Thinking it through HSBC has the old CCdF operation which acts as an easy enabling platform, and they are well placed to absorb the costs. I would have thought UBS are equally well placed. Am I right in thinking that smaller banks who want to be in the EU but who are at present only London-based will be relatively disadvantaged ? If so who are they ? Am I right in thinking that they may find that their path of least resistance is to pick up a continental acquisition ? If so who are they ?

Currently I hold HSBC and StanChart for what its worth and this is not an area of focus for me. I'm just keen to avoid unnecessary pain inside my portfolio hence my personal thought-line on this. So far for me this doesn't look a reason to change approach. Does anyone think I am mis-reading this at a banking company/sector level ?

regards, dspp

OZYU
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24452

Postby OZYU » January 19th, 2017, 2:39 pm

I hold HSBC, now slightly overweight due to sp action in the last year or so, and my thinking is in line with the PeterGray and dspp posts.

Lets concentrate on the investment angle and not over react (as did Grimer imho) to these, to my mind, inevitable moves by the financials.

We are likely to see a lot more of this in years to come imho.

As for the smaller players with only UK based operations trying to acquire other players based in the EU, I agree it is on the cards, but I think they will likely get massive resistance from EU regulators when they try.

Ozyu

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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#24468

Postby Raptor » January 19th, 2017, 3:41 pm

I hold HSBC and I cannot decide if this would be a good thing for the dividends/share price or not. However, until it happens, and there is no real evidence it will happen, I will sit and watch.

I remember when they were Hong Kong and Shanghai bank Corp, they were one of my customers in the City (as was Midland Bank). Many times the discussion moved around where they would have their HQ and its effects. Nothing ever happened, OK some jobs moved around along with personnel, but that happened in most companies at that time (reason I ended up 3 years in France and 6 months in the US).

Raptor.

youfoolishboy
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Re: HSBC CEO Says Bankers Generating 20% of London Revenue May Move

#25675

Postby youfoolishboy » January 24th, 2017, 12:40 pm

There is always profit in chaos and there will be a lot of that with Brexit regardless of what side of the fence you are on and who will make the profits? I suggest banks will. Moving a few people and opening a branch in Euroland is not going to effect profits that much but companies having to move manufacturing bases or new trade deals happening are going to create a lot of money movement.


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