The first closures will be made in early July, with branches in London, Bristol, Swindon and Leigh-on-Sea set to be axed. We also get your email address to automatically create an account for you in our website. If the Hong Kong dollar starts to get too strong, meaning at the bottom of this range, the Hong Kong monetary authority has to sell Hong Kong dollars into the FX markets. He said: “Nothing can be done to clean up the City of London. HSBC has global operations concentrated in UK and Asia. By far Asia’s biggest financial hub, servicing not just China but many other Asian markets, Hong Kong accounted for 60% of HSBC’s global pretax income in 2019. FTSE 100 (^FTSE) dividend payments are forecast to drop by 20% this year due to the COVID-19 outbreak and subsequent recession, it has been revealed. HSBC say all of 275,000 payments missed in computer meltdown are now processed. Explain Kyle Bass's numbers on Hong Kong and HSBC. HSBC can no longer avoid the brutal political truth An accelerated programme of 35,000 job cuts from a global workforce of 235,000 is inevitably undermining morale at a time of crisis The bank said that 46 jobs are at risk in 10 of the named branches, staff at the remaining branches will be moved to nearby sites. This is a big sign of the big collapse coming. They have to have USD reserves, in order to have those dollars to sell into the market, to buy back their own currency. (Here's Why), Shadow Banking: What You Can’t See Will Hurt You. Well, like everything, it goes back to the federal reserve. 4.02pm EST 16:02. Kyle: How about, capital flight? . The branch closures where jobs are at risk: London Park Royal – to close on July 3 Peterlee – July 10 Chard – July 10 Royston – July 10 Tiverton – July 31 Ely – July 31 Pembroke – July 31 Saffron Walden – July 31 Thetford – to close later in 2020 Bourne – to close later in 2020. The branch closures where jobs will be moved to nearby sites: Bristol Bedminster – to close on July 3 Leigh-on-Sea – July 3 Chingford – July 3 Swindon Old Town – July 3 Kensington High Street – July 3 Blaby – July 10 Leigh Bradshawgate – July 10 Wallasey – July 10 Pudsey – July 10 Croydon Wellesley Road – July 31 London Greenwich – to close later in 2020 London Regent Street – to close later in 2020 Redhill – to close later in 2020 Sheffield Broomhill – to close later in 2020 Cheltenham Bath Road – to close later in 2020 Coventry Corporation Street – to close later in 2020 Heswall – to close later in 2020. Welcome to DOSBODS ... HSBC is funding most of its uk lending with fixed rate, fixed term bonds sold to chinese. HSBC is still expanding. But it may not be enough to save the the world’s most expensive property market from a very rocky 2020. Barclays and HSBC shares fall after reports of alleged suspicious transfers ... Mon 21 Sep 2020 04.09 EDT First published on Mon 21 Sep 2020 03.41 EDT. There are so many charts that point this out. That creates more supply for Hong Kong dollars, more demand for USD. Updated January 19, 2020 ‘World Economy Would Collapse’ If City of London Stopped Laundering Money, Says HSBC Whistleblower from Sputnik News Britain is due to leave the European Union later this month but there is no sign of banks quitting the City of London, one of the main claims made by Remainers in the run-up to the Brexit referendum. HSBC has declined to comment on the situation. Kyle: HSBC enterprise clients say they've been left at midnight about bounce-back mortgage purposes Small companies say HSBC is pushing them to the brink of collapse due to the time it's taking to approve bounce-back loans. It is understood that the collapse of the deal is partly linked to the administration of Arcadia Group, which is the biggest operator of concessions in Debenhams stores. ... triggered by coronavirus means HSBC is also going … When they diverge it creates massive structural problems that usually end in collapse. And also remember, there's going to be potentially a lot less demand in the future for the Hong Kong currency from China, because of the Cerveza sickness has really got this entire country on lockdown. HSBC's revenue since 2015 has gone down by $6 billion. According to Bass, a peg only works if the economies of the two sovereigns are aligned. Especially considering Hong Kong accounts for 32% of HSBC's revenue!! You may be asking yourself, “My gosh, George, how did their debt problem and their housing bubble get so out of hand?”. Its role in the $80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files. So you may be asking yourself, okay, George, well, what would make the Hong Kong dollar get to the top of this range, to where the Hong Kong monetary authority would have to come in and defend the currency? Rona Fairhead, a former director of HSBC, was also chair of the BBC Trust and is currently a member of the House of Lords. When a recession comes around, it will spell disaster for HSBC. If any politician tried to dismantle the City of London the world economy would collapse. The Secret Government Plan To Produce A Stock Market Hyper Bubble, How Bank Reserves Actually Work And Why They Are No Longer Required. HSBC has said it will axe around 35,000 jobs as it announced profits for 2019 fell by about a third. Also, there's a gigantic bubble. Just to give you some perspective in the United States, it's right around a hundred to 150% of GDP, and we spend like drunken sailors. ... Goldman Sachs projects that G.D.P. “But, the way our customers bank with us has changed significantly over the last five to 10 years, and that change is something we cannot ignore,” Stuart Haire, HSBC UK’s head of retail banking and wealth management, said. They try to keep the peg 7.75 to 7.85 Hong Kong dollars per one United States dollar. This is a chart of interest rates in Hong Kong from 2000-2020. Definitely not a chart where you want to be number one. This is a big sign of the big collapse coming. Our. What you're seeing in Hong Kong today is a collapse in their economy. HSBC has struggled legally and financially to compete as an international bank. Not only because the interest rates are going up from such a low base, but because they have so much debt in their system, going back to step number one. Customers with Holiday Credit Notes, issued for package holidays cancelled since March 2020, due to the COVID-19 pandemic, may have the same financial protection as … By far Asia’s biggest financial hub, servicing not just China but many other Asian markets, Hong Kong accounted for 60% of HSBC’s global pretax income in 2019. And if you peg your currency to the dollar, or whatever currency you're pegging to, you have to also adopt that country's yield curve. But to put all the pieces of the puzzle together, let's go right back to Kyle Bass. In Conclusion, Kyle Bass thinks HSBC will go into crisis mode in 2020. HSBC has spent the last five years extending its reach into China as part of a broader push to Asia. And right now, they're almost empty. March 2020: Tax year scams The end of the tax year is seen by fraudsters as an opportunity to make ‘social engineering’ attacks. HSBC is going to be one of the first banks to fail and collapse. How do they afford a 50% deposit on the most expensive real estate in the world?”, They said, “Oh, that's easy. HSBC system failure meant businesses unable to pay staff and … Kyle Bass Predicts HSBC Collapse In 2020! The bank said that 46 jobs are at risk in 10 of the named branches, staff at the remaining branches will be moved to nearby sites. How The Government Can Steal Your Money Through Inflation! Today I’m releasing our views on the financial, political, and legal plight of Hong Kong. “Retaining a sustainable branch network is extremely important to us and we need to ensure it is fit for the future. 5 days HSBC Shareholders Urge Bank To Cut Fossil Fuel Funding. If we can see how giant this bubble is, don't you think the people in Hong Kong can? Capital flight as a result of oh, Hong Kong protests? That would create more demand for the Hong Kong dollar, which would keep it closer to this peg. HSBC has said it will axe around 35,000 jobs as it announced profits for 2019 fell by about a third. HSBC $ denom debt (in LQD) is rated A2/A3 currently with with coupons ranging from 3.0 to 6.2 BUT nearly all of it trading way above par so you deff wont get anything near 5.8 now. Kyle Bass Predicts HSBC Collapse In 2020! “And the first year they refi their family out. This is what I call having all your eggs in one basket. London-based bank on mission to cut £3.5 billion in costs by 2022. And let me remind you that our interest rates spiked a lot less than Hong Kong's would, and our banking system relative to GDP was around a hundred percent. Kyle Bass: He called the US banking crisis in 2008 and now he's calling for a Hong Kong banking crisis in 2020, specifically HSBC! Throw in mainland China and it reaches 75%. And that's an economy that's the most highly leveraged economy in the developed world. Only 5 out of 20 of the issuance even yields above 5, and all of that has maturity dates greater than 2036! It’s lost that competitive struggle, and now has to shrink (it was never going to be a top investment bank). And Hong Kong’s real estate market is even worse. So we'll go ahead and call it the Cerveza sickness, wink, wink, wink. If it gets too weak, they just do the opposite. You're going to see a full-fledged banking crisis in Hong Kong next. This is the banking relative to GDP for different countries. Hong Kong has gone from 24.2% of HSBC's revenue in 2015, now all the way up to 31.9%, like we said, in step number one. And that basket is a ticking time bomb. Because Hong Kong pegs its currency to the United States dollar. But of course, there's a catch. Kyle Bass Predicts HSBC Collapse In 2020! Banking giant HSBC has unveiled a major restructuring plan that includes 35,000 job cuts. So in the first year,” this is a partner at one of the biggest firms in the world tells me this, that runs the real estate business. They like to keep the range. To put that in dollar terms, that's over $2000/Sqft US dollars. HSBC is obviously going through a difficult period. They say, “Oh, Hong Kong mortgages. And if they're selling those assets, that are denominated in Hong Kong dollars, that makes less demand for the Hong Kong dollar, more supply, and that makes it even weaker. The private credit in the Hong Kong system relative to GDP is over 300%. This Stimulus Bill Will Not Save the Economy From Collapse. I think they're all in real trouble in Hong Kong. Gold and silver will become real currency again. Words like “collapse” and “crash”, or “surge” and “explode” attract clicks, which in turn often translates to cash for a writer, but major events like that are rare. ... HSBC. If Hong Kong even raised their rates to 5 or 6%, it would crush their economy far worse than it did in 1998. One other small enterprise proprietor says her psychological well being has been affected by Find answers to all of your questions about banking with HSBC, including credit cards, insurance, loans and foreign exchange. HSBC Software Development (India) Private Limited: Established more than 15 years ago, HSBC Software Development (India) Pvt. We've linked up with Birmingham's Digital Education Partnership to enable people and businesses to get their old laptops to children who need them the most, Boris Johnson says 'it's too early to say' if lockdown will last until summer, The Prime Minister told reporters: "I think it's too early to say when we'll be able to lift some of the restrictions", The amazing vegan takeaways to help you be healthy over lockdown, The best meat free ways to treat yourself with a takeaway over lockdown. #2 – They can just go ahead and let the peg break on its own, but that would have the exact same effect because if that peg breaks, that creates inflation and that creates massive capital flight out of Hong Kong, which boosts interest rates naturally. Well, what happened to the US banks when they had all those adjustable-rate mortgages in 2008 after interest rates spiked in the US around 2006? I've mentioned several times on this channel that the price to income ratio in Los Angeles is completely absurd. He is also well known for sounding the alarm on China and Hong Kong. The latest breaking news, comment and features from The Independent. HSBC plans to drive customers to mobile in cost-cutting move. So because of this, Cerveza sickness, that is also going to create a lot more supply for Hong Kong dollars if there's a capital flight leaving Hong Kong. In Conclusion, Kyle Bass thinks HSBC will go into crisis mode in 2020. Throw in mainland China and it … HSBC Bank is not that weak to worry about what will happen if it collapses. If you've been affected by the Flybe collapse, you can find out how to raise a dispute here. I will provide you some facts to assure you regarding this. The 59-year-old was involved in a collision which shut the motorway for more than eight hours. For the record, analysts still think HSBC could pay a dividend of 26.4p a share for fiscal 2020, enough for a 6.3% yield on the shares. They adjust by the month. It doesn't get much better. HSBC has cut a number of top management roles in its investment bank, a sign that CEO Noel Quinn is pressing on with plans to shake up the group despite having put a … You can unsubscribe at any time. Global Finance … HSBC has said it will close 27 stores across the country in 2020. And in the next two years, they refi the developers out, and then they have a 50% LTV loan.”. HSBC has spent the last five years extending its reach into China as part of a broader push to Asia. 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Citigroup and HSBC Securities both expect an increase in central bank gold purchases next year after a drop-off in 2020. HSBC is going to be one of the first banks to fail and collapse. Most of the European banks are yet to recover fully after 2008–09. During an economic collapse, major shortages and supply chain problems are highly likely, making these types of supplies one of your most important pre-collapse considerations. And that curve is very flat right now, and very low. In March 1865, HSBC opened its doors for business in Hong Kong. Would love your thoughts, please comment. If HSBC isn't already the repo market bailout, they most likely very soon will be. Bear Stearns didn't go down until till March of '08, and Lehman, AIG, and Fannie and Freddie didn't go down until September of '08. As an employee, I can assure you this. More on that later. So it takes about a year for the full-fledged banking crisis to hit. HSBC is, for example, among creditors to Singapore oil trader Hin Leong Trading (Pte) Ltd, which is struggling to repay debts following a collapse in the oil price, Reuters reported on April 16. The reason the Hong Kong monetary authority would have to jack interest rates because those higher interest rates would attract capital coming into Hong Kong. If HSBC isn't already the repo market bailout, they most likely very soon will be. If they deplete their reserves, And if they don't have any dollars, then the peg breaks. HSBC is going to be one of the first banks to fail and collapse. We've got to go over the numbers. It simply wasn’t large enough to divest Asia and try to become a purely western bank. Remember, Hong Kong is married to the US yield curve. And to get even further insight on the insanity of their real estate bubble, let's go right to a real vision interview with one of my favorites, Kyle Bass. Supply for Hong Kong dollar, which is 7.8 be disadvantaged ' - teacher #! 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