HSBC

(Bloomberg) -- The U.S. Justice Department is in talks about a possible resolution in the legal case against the chief financial officer of Huawei Technologies Co., according to a person familiar with the matter, a simmering dispute that has fueled a clash between the world’s two biggest economies.No deal or terms have been reached in the discussion about the fate of Meng Wanzhou, said the person, asking not to be identified because the matter is private.Justice officials and lawyers have discussed the prospect of a deferred prosecution agreement related to wire and bank fraud charges, which would allow Meng to return home to China from Canada in exchange for admitting wrongdoing in the criminal case, Dow Jones reported earlier, citing people familiar with the matter. She was arrested two years ago in Vancouver and has been confined to the city since then.The Trump administration’s moves against Huawei -- particularly the arrest of Meng, the daughter of founder Ren Zhengfei -- have added to the rising tensions between the U.S. and China. In addition to the legal case, the U.S. government has pressed allies to bar their telecom carriers from using the company’s networking equipment because of alleged security risks.Meng has so far resisted the proposal because she believes she has done nothing wrong, Dow Jones reported. The U.S. claims Meng tricked HSBC Holdings Plc into processing Iran-linked transactions that put the bank at risk of violating American sanctions. A DOJ spokesman and Huawei representatives declined to comment. Meng’s lawyers didn’t immediately respond to requests from Bloomberg News. A spokeswoman for Canada’s Justice Minister David Lametti said, “As the matter remains before the courts, it would be inappropriate to comment further.”An agreement about the Huawei CFO could remove an issue that has damaged the China-Canada relationship and pave the way for the return of two Canadians who were detained in China after Meng’s arrest, Dow Jones said.Negotiators for Meng and the Justice Department will speak again this week in hopes of reaching a deal before Donald Trump leaves office, the news service reported. Huawei officials are also holding out hope that Joe Biden’s administration will be more lenient, the report said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Investors feel the UK's biggest bank's outlook has improved after slumping in September.

(Bloomberg) -- Fear of owning HSBC Holdings Plc shares is turning into a fear of missing out on a major rally.Europe’s biggest lender is up 51% in Hong Kong since touching its 25-year low in September, and is the best-performing stock on the Hang Seng Index this quarter. Just two months ago, investors were fretting over how mounting regulatory and economic pressures would squeeze the firm’s key businesses in Asia. Shares of HSBC rallied 3.7% on Wednesday in Hong Kong, while the Hang Seng fell 0.1%.But a lot has changed since then. British regulators have signaled they would consider softening their stance on a dividend ban imposed on banks in March at the height of the pandemic. Also, HSBC recorded better-than-expected third quarter results on cost savings while investors have piled into financial stocks as part of a sector rotation.“HSBC’s fortunes have improved with a U.S. presidency change likely to ease trade and China-U.S. tensions, as well as increasing cost savings expectations and a likely return to dividends in 2021,” said Jonathan Tyce, an analyst at Bloomberg Intelligence.HSBC’s Hong Kong-listed stock has punched through several major resistance levels and is now trading above its 50-day, 100-day and 200-day moving averages. Its 14-day relative strength index is at 73, a level indicating the stock is in overbought territory.China PlansThe gains come after a testing period for the bank in its crucial China market. HSBC shares in Hong Kong plunged to their weakest since 1995 in September after it was seen as a possible candidate for China’s “unreliable entity list” that aims to punish firms, organizations or individuals that damage national security. Chinese media blasted it over its role in the U.S. investigation of Huawei Technologies Co. HSBC had also faced pressure to publicly endorse China’s new security law in Hong Kong.But there are indications that the standoff with China may be easing. Last month, the Communist Party’s Global Times newspaper highlighted on Twitter comments from HSBC Chairman Mark Tucker about the bank’s China expansion plans. China’s U.K. ambassador Liu Xiaoming quoted the tweet supporting the move.Still, most analysts have yet to soften their stance on the bank’s outlook. Just this week, Deutsche Bank AG and Credit Suisse Group AG analysts reiterated negative ratings on the firm’s shares in London, according to data compiled by Bloomberg. Only six of the 31 analysts tracked by Bloomberg who follow HSBC recommend buying and 13 give it a sell.On the other hand, Citigroup Inc. raised its price target for HSBC by 24% late last month saying that it’s better positioned than other Hong Kong banks going into 2021 on stronger earnings recovery and an expected dividend restart. Goldman Sachs Group Inc. recommended a buy rating.HSBC has some hurdles ahead, with the ongoing pandemic forcing the firm to step up cost-cutting plans to contain debt. The firm also mulled plans to offload its U.S. consumer franchise.Beyond the company’s strengthening outlook, the bank has also been a beneficiary of investors piling into bank stocks in a move widely attributed as sector rotation. Standard Chartered has gained about 41% so far this quarter, while Industrial & Commercial Bank of China Ltd. is up 27% in Hong Kong.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Eric Fisch, Head of Retail and Apparel, Corporate Banking at HSBC Bank USA; Amy Hall, Vice President, Social Consciousness at EILEEN FISHER; and Matt Thurston, Director of Sustainability at REI speak with Tensie Whelan, Clinical Professor, Business & Society and Director, NYU Stern Center for Sustainable Business at the Bloomberg Sustainable Business Summit Global virtual event about driving profits through suistainability. (Source: Bloomberg)

The pandemic slowed the game of musical chairs among Europe’s bank bosses. As 2020 draws to a close, the biggest lenders have abruptly resumed swapping talent at the top.

Bank of Montreal (NYSE: BMO) is set to exit its U.S.

With much of Europe reverting to lockdown measures to curb resurgent Covid-19 outbreaks, Scandinavia will continue to outperform into 2021, according to HSBC.