HSBC Financial News

bond sale, a document showed, the first high-profile debt issue from the region since last week's Israel-Hamas conflict unsettled regional markets. The Public Investment Fund (PIF) plans to issue a dollar-denominated Islamic bond, and mandated Citi, HSBC, JPMorgan and Standard Chartered Bank to arrange a series of investor calls starting on Monday. It will be the PIF's second international debt issue this year after it raised $5.5 billion from green bonds in February. The plans come as the troubles in Israel have triggered an increase in volatility in the Middle East and North Africa (MENA) region and seen major investment banks such as JPMorgan and Morgan Stanley downgrade their view on the broader region. A European-based investor said markets were closely watching how pricing and demand for the PIF Islamic bond would shape up in days to come, with the issue being seen as a weather vane for sentiment towards fixed income in the Gulf region more widely in the wake of the conflict. The PIF is the chosen vehicle of Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, to drive an economic agenda aimed at cutting reliance on oil. A dual tranche of 5- and 10-year tenor senior sukuk, or Islamic bonds, will follow the investor meetings, the document seen by Reuters showed.

The tagline from Wall Street was that 2023 was the year of the bond. Instead, fund managers are coming to terms with one of the toughest years ever.

"Partnering with a leading education provider like MDI is not only a step-forward for LIBF India but will also act as a transformative opportunity for students and professionals in India. We commit to imparting best practices among students and professionals in the banking and finance domain, preparing them to excel in the ever-evolving global financial landscape" says Sumit Mehta, Director, LIBF India.

HSBC Holdings Plc. “The numbers don’t exactly add up,” economists Frederic Neumann and Justin Feng wrote in a report Friday.

Bank of England has provided a three-and-a-half-year time frame for three domestic clearing houses to work out an inspection framework amenable to UK norms, giving British banks an advantage over their European counterparts when it comes to handling investment flows to India. The European markets regulator in October 2022 de-recognised six domestic clearing houses, creating hurdles for trading and management of billions of dollars' worth of international flows for the continent's banks operating in India. British authorities, which had initially followed suit, have, however, been much quicker at resolving issues pertaining to treatment of Indian clearing houses. «Currently a non-UK CCP (central counterparty) that enters the run-off regime from the TRR (Temporary Recognition Regime) is taken to be recognised for a period of up to three and a half years, determined by the Bank of England, from the day on which the CCP ceases to be taken to be recognised under the TRR,» read a Bank of England document dated September 28. The three Indian clearing houses listed out by the UK central bank are the India International Clearing Corporation Limited, the NSE Clearing Limited, and the NSE IFSC Clearing Corporation Limited.

Amit Sachdeva, India Equity Strategist, HSBC Securities, says “given the stable growth macro and where the world is today, India continues to be a very attractive destination for FIIs and that is not going to go away with one month of small short-term volatility or event. The larger game is set. If you look at the longer picture, what gives you confidence that India should do well? It is seen as a more structural market. But another factor that has worked in India's favour is that when you survive a crisis, the resilience is proven.” What are the triggers that will make FIIs come back to India equities. This is one of the largest selling sprees that we have seen in recent history, consecutive 14 days of sell-off from FIIs. What would have to change on ground for them to come back and would it only be a function of the way the US yield pans out? It is largely that factor, to be honest. If you look at FII flows and put that in the context of bull runs, we are about 0.6% of the market cap. In the last 12 months, every time you look at FII inflows, you have to look at accumulated flow of last 12 months because you may see some incessant flows in the last six months assuming that is the massive inflow that has already come, but it is true because the base is very benign. We are at about 0.6% of market cap which is way below the bull run averages at 1.7% and perhaps 3% of the bull run peak. So, in some sense, the base is extremely benign. We have seen large outflows last year, to be honest, minus 17 billion to be precise.

Amit Sachdeva, India Equity Strategist, HSBC Securities, says “there are two vulnerabilities for India; one is obviously a geopolitical crisis. If it spirals out of control, then it might weigh on India's investment case. But US bond yields have also risen quite sharply. That has seen some outflow as well. But if you look at the overall picture for India's Goldilocks scenario, I would hazard a guess that India is in a decisive bull run and we are in the middle of it right now.” What is your take on the Israel-Palestine war? The way both local and global markets have been resilient, it looks like markets are saying this is not Russia and Ukraine. This is very localized and is unlikely to have a financial disruption. Geopolitical situations are always interesting and also hard to predict. One thing can lead to another. I am not going to call that out, to be honest. But the market obviously has taken a view that the situation will be contained. It would not spiral out of control, et cetera. So at least the market has taken that view. My sense is that could probably be the fair view as well. But more importantly, India's context is very interesting because India has been an outperforming region three years in a row. That makes many people wonder whether these rallies can continue. But I think we need to drill down into the entire Goldilocks scenario of India.

By Iain Withers

Investing.com -- U.S. stock futures slump after fresh violence over the weekend between Israel and Hamas. The conflict's geopolitical ramifications spark a jump in oil prices, adding to concerns over inflationary pressures as crucial U.S. consumer price data looms later in the week. Elsewhere, activist investor Nelson Peltz reportedly plans a push for board seats at Walt Disney (NYSE:DIS), while Citigroup (NYSE:C) agrees to sell its mainland Chinese consumer wealth unit to HSBC Holdings (LON:HSBA).

LONDON — The U.K.'s Metro Bank will likely struggle to raise fresh capital to shore up its balance sheet, according to analysts, who outlined bleak prospects for the beleaguered bank.

This would add to the potential equity and debt raising that is being targeted by the bank in order to refinance a £350m MREL debt due next year.

The selloff in government bonds in recent days is being called the “one of the most violent recalibrations” of the bond market in recent years, and the shock waves are being felt around the world.

A sell-off in global bond markets gathered pace, driving yields to the highest level in more than a decade as traders brace for an extended period of tight monetary policy.

Morgan Stanley’s Michael Wilson, an unwavering equity bear, says the correlation between real rates and equity returns has fallen deeper into negative territory — a sign that interest rates have once again become a determinant of stock performance. At Bank of America Corp., however, Savita Subramanian thinks equity markets can still thrive if rates remain elevated.

Also Read: Stock market holiday: BSE, NSE to remain closed today for Mahatma Gandhi Jayanti JSW Infrastructure IPO will be the second after RR Kabel IPO that will list in the T+2 timeline. JSW Infra IPO was opened from September 25 to September 27. The IPO share allotment was finalised on September 28.

Air India on Friday said it has completed the acquisition of its first A350-900 aircraft by way of a finance lease transaction with HSBC through the GIFT City. This is also the first wide body aircraft to be leased through the GIFT City, the country's first International Financial Services Centre (IFSC).

JPMorgan’s debt capital bankers were expected to price a $US850 million ($1.3 billion) high-yield bond deal for Chris Ellison’s Mineral Resources overnight, after running a multi-country roadshow earlier this week.

Citigroup Inc. is in talks to sell its China onshore retail wealth business to HSBC Holdings Plc, as the latter continues to build out its presence in the mainland, according to people familiar with the matter.

By Selena Li

Protean eGov Technologies (formerly NSDL e-Governance Infrastructure) is planning to make an initial public offering of around Rs 1,200-1,300 crore by the end of October, people privy to the development said. “The company will submit its updated draft red herring prospectus before markets regulator Securities and Exchange Board of India this week … It aims to launch the IPO to the public by the third or fourth week of October,” one of the people said.

Also read: Chinese President Xi Jinping's housing crisis efforts jeopardized as Evergrande face trouble “The real estate sector will continue to be under mounting pressure" despite recent government efforts to support property, said analysts at Poseidon Partner, a Hong Kong-based investment firm. “We expect to see players who racked up debt in the past to continue to suffer." The economist survey coincides with new research from Bloomberg Economics that suggests the “around 5%" growth goal is still possible, though not a sure bet. They estimate the probability of an undershoot at 18%.