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HSBC: Climate tech investment is currently lower than last year
  + stars: | 2023-04-05 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHSBC: Climate tech investment is currently lower than last yearMartin Richards, global head of sustainable finance at HSBC Global Commercial Banking and president of HSBC Ventures, discusses climate innovation and the planned energy transition.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMalaysia and Indonesia can benefit from higher energy prices, says HSBCJames Cheo of HSBC Global Private Banking and Wealth says it'll be a different situation for energy importers like Singapore.
London CNN —One of the main jobs of central banks is to keep prices under control, allowing households and businesses to plan for the future with some certainty on what things will cost. Tolga Akmen/EPA-EFE/ShutterstockPolicymakers face difficult questions about exactly when to pause interest rate hikes. The European Central Bank’s main rate is 2%, while the Bank of England’s is 3.5%. Still, investors are becoming increasingly confident that major central banks will change course soon. “Central banks are relatively close to the end,” Sels said.
Brutally high oil and gas prices were the talk of the town and one of the largest contributing factors to sky-high inflation. That was bad news for drivers, but ended up being great for the energy industry as oil prices and energy stocks are closely interlinked. As markets fell under the pressures of economic uncertainty, geopolitical chaos, elevated inflation and a hawkish Fed, the energy sector thrived. The S&P ended 2022 down nearly 20%, while the energy sector grew by about 60%. But analysts say US oil companies can’t keep winning for much longer.
London CNN —Natural gas prices in Europe and the United States have tumbled to levels last seen before Russia sparked a global energy crisis by invading Ukraine. Even so, European gas prices are still historically high, and could rise again this year if demand from China picks up or supplies are disrupted. Wholesale prices were already shooting up in the months before the war as economies reopened from pandemic lockdowns. “It will take a bit [of time] for the fall in the wholesale prices of natural gas to [feed into] into the retail prices,” he said. That will keep Europe at a competitive disadvantage to the United States, where gas prices are about five times lower.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. inflation is peaking, but it isn't out of the woods, HSBC saysJames Cheo of HSBC Global Private Banking and Wealth says inflation in the services sector is "still quite sticky."
Wall Street tumbles as Fed sparks recession fears
  + stars: | 2022-12-15 | by ( Chuck Mikolajczak | ) www.reuters.com   time to read: +4 min
The Fed projected continued rate hikes to above 5% in 2023, a level not seen since a steep economic downturn in 2007. "What the market is saying is if you continue this way, a recession is basically a done deal." Money market participants expect at least two 25 bps rate hikes next year and borrowing costs to peak at about 4.9% by midyear, before falling to around 4.4% by year-end. All the 11 major S&P 500 sectors were in the red, with communication services (.SPLRCL) and technology stocks (.SPLRCT) falling about 4% as the worst performing on the session. The S&P 500 posted one new 52-week high and seven new lows; the Nasdaq Composite recorded 51 new highs and 289 new lows.
The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won. The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December due to mixed economic data and worrying corporate forecasts. Tesla Inc (TSLA.O) fell 2.9% after CEO Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.
The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% in the first half, before falling to around 4.4% by the year end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts. Investors also digested economic data on Thursday that showed a steeper-than-expected decline in retail sales in November and the number of Americans filing for unemployment benefits falling last week, indicating a tight labor market. The S&P index recorded no new 52-week highs and four new lows, while the Nasdaq recorded 24 new highs and 120 new lows.
There will be winners and losers at this year's FIFA World Cup — both in the stadium and stock market. Aviation fuel provider Qatar Fuel and hotel operator EMAAR Properties also made the bank's list of beneficiaries. But risks remain for investors, highlighted by the Qatari government's last-minute ban on sales of all beer at and around World Cup stadiums. Qatar Fuel, the exclusive jet fuel supplier in Qatar, will likely benefit from the World Cup almost immediately. The World Cup won't just benefit consumer companies in Qatar and the surrounding region, but the world over.
Many operate in areas like filtration and desalination, testing and analytics or smart water networks that can help use water more efficiently. It also invests in water solutions companies like Danaher even if the share of their revenue from water-related businesses is below the 30% threshold the fund typically requires. Water metering also is important for conservation efforts, and companies in this space include Xylem , Badger Meter and Roper . As a pure-play water company, he expects it to take advantage of several industry trends. In the water quality space, Evoqua Water Technologies is a name RBC likes.
We prefer Southeast Asia assets to North Asia ones, says HSBC
  + stars: | 2022-10-27 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe prefer Southeast Asia assets to North Asia ones, says HSBCJames Cheo of HSBC Global Private Banking and Wealth says there are "pockets of opportunity" in Asia, such as resilient domestic consumption in Indonesia and parts of Thailand.
FILE PHOTO: Pedestrians wearing face masks following the coronavirus disease (COVID-19) outbreak, walk past a HSBC bank branch in Hong Kong, China February 22, 2022. HSBC sees robust demand for wealth management in Chengdu, capital of the western province of Sichuan with more than 21 million people. The bank has already launched private bank services in Beijing, Shanghai, Guangzhou and Shenzhen. “As a new class of HNW and ultra HNW individuals emerges from the vigorous development of Hangzhou’s digital economy, demand for international wealth management has also grown significantly,” Jackie Mau, head of global private banking at HSBC China, said in a statement. Beijing launched in late 2020 a crackdown that effectively halted Ant’s initial public offering that could have created more millionaires keen for wealth services.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're neutral about most of Southeast Asia but we like Thailand, says HSBCJames Cheo of HSBC Global Private Banking and Wealth says that's because of the country's reopening and tourism industry.
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