Hsbc, John Flint, Hong Kong discussed on Biz 1190 Overnight featuring Bloomberg Radio
Goldman Sachs saying that the key focus is going to be on revenue. It's going to be on cost progression. You've got Morgan Stanley. They're looking again. I mean, they're overweight from this particular company agreeing that good operating leverage will be key to HSBC's positive Charles guidance. Some other lines coming through here just to keep everybody in the loop. You've got the adjusted expected credit for the third quarter at five hundred seven million dollars. We know have commentary as well. From Mr. Flint from HSBC says it's encouraging the numbers are encouraging they demonstrate revenue potential. It also comes down Stephen to the high board live or spread that's been especially in domestic markets in the UK and Hong Kong. Yeah. That's right. Given the rising rate environment. Here is they follow the fed that there would be a boost to the net interest margins here, we did talk to Fitch Ratings senior analysts though earlier this morning saying though, the competitive environment here in Hong Kong will not necessarily translate higher to higher net interest margins because of the higher high board that we have seen, but that could be if we're in a long tightening cycle that could be a long term growth for the bag. But right now, still not according to Fitch Ratings a going to be a big boost. I'm just looking at these numbers we can kind of give it a percentage rise that third quarter just a pretext prophet as I said beating the estimates by sixteen percent. So it's a fairly healthy arise over the estimates. The adjusted revenue increase that they mentioned just a few minutes ago, a thirteen point eight four billion that is a nine percent rise as well. So a fairly good numbers. But again, John Flint the CEO who took over earlier this year. His emphasis really is going to be on Asia. They get about seventy seven percent in the first half of justed pretax profit from Asia. He wants to continue that trend. He wants to go into China. He said he wants to raise his hand. It'd be one of the first banks to be a London based banks to list in the new Shanghai. London stock connect that could happen as early up and running as early as December. We'll we'll have to wait and see until this afternoon. Three thirty time that we're going to get the conference call from these executives at HSBC. Yes. Even I was just about to ask John, of course, about eight months into the job. So not that new. But then again, he's had time now to really rush forward on some of his strategy. What are you going to be looking out for on the conference call, and what do you think investors are going to be watching for? Yeah. They're going to want an explanation on the negative jaws. Definitely and win that will likely turned around because they have been kind of telegraphing that they're going to get this turned around. So what knocked it back down. But also again, the Asian expansion. There is such a high reliance on Hong Kong. I mean, forty nine percent of their pre-tax profits comes from this market alone. And this is a market where the stock market is down seventeen percent. They are feeling the effects of the trade war between China and the United States where else can you find growth and keep in mind eighteen percent of their pretext profit comes from the UK market. You have that thing called Brexit as well. I think I've heard of that. Yes. It's continue the Bank earnings theme. Devise largest lender. Emirates NBD posted a sixteen percent increase for the third quarter profit this week top analysts estimates use of in tracing got more on that. And the other regional corporate news with our Middle East. Equities markets reporter, Philly Pacheco. The numbers are just out. And we see that it was better than analysts were expecting. This is stoking two boys. One of the stuck is doing the best in this market. So far this year. There's a story behind the name that we are watching closely and anyone looking at banks in the region right now having might which is the fact that they approved the increase in foreign ownership. Limit earlier this year it will go from five percent up to twenty percent. But the thing is nobody knows exactly when this is going to be implemented. We knew that the numbers are good. The people are bullish on the day. And we probably should a reaction in the market during trading session today. But if we have any kind of DT or clarity about win. This lemon dish will happen. We should even higher jump for joining a higher jump Felipe eight let's turn over to Saudi Arabia. Because of course, we've had so much headline risk there over the past couple of weeks. HSBC CEO John Flint said yesterday that he thought. The drama over the shock of fare wasn't going to actually impact investor appetite there. What are you hearing from people on the ground? Tracy. That's a very good point. Because right now, we it seems like people are getting back to what they were looking before the whole has showed. She's saga started last week. We do know that foreign outflows were huge last week by foreigners and by retail institutional investors continue to buy and basically to support the market in Riyadh. But right now, we still hear a lot of people bullish banks numbers are coming out and most analysts are still quite bullish. Especially on those names that will be added to the end footsie list next year, and we hear a lot of pessimism towards consumer names and anything related to retail consumption, because that's also as we know a very big topic in Saudi right now, how many people were living the country because of Saudi ization, and how is that impacting the the number in the performance off those consumption names? So it seems like things are coming back to normal volatility. Look a lot has a faded a lot. It was extremely high two weeks ago. And now it's back to levels that we saw earlier this month in a close to September levels. So it seems like things are coming now a little bit. We're almost at the halfway point. Now in terms of earnings fifty eight companies on one hundred and seventy one on the Saudis, Adele have reported so far what are some of the other names that you're looking at for the next forty eight hours. Interesting named that that started the earnings story in Saudi is Zane say, for example, it's the local subsidiary of saying, you know, it's from Kuwait and the performing quite well yesterday in Riyadh up almost seven percent. We maybe we should see a rally continuing today because it's the first time it's the first quarter that they present a positive result in in four. So the I think people were lacking. And they're looking for the good stories in the Saudi market right now. Especially after the punish the market wasn't the best two.