Breakingviews: HSBC's getting fitter on that treadmill
Monday, November 04, 2013 - 04:23
Nov. 4 - A lack of fines, few bad debts and lower costs help HSBC to lift pretax profit. Its fate will depend on interest rates and GDP growth, but expect steady dividends in the meantime, says Breakingviews.
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On today's breaking news it an underlying pretax profit rising 10%. HSBC stuck on a treadmill but looking fit sat. And I Alcatel -- picked a good time to raise seem well here to talk about this is Chris -- Which is breaking views and Lisa thanks so much for joining us crescent HSBC. Results spoke -- Do you think that this means now that -- all of us in ways vindication is it's getting in on the right track heading in the right direction. Was sort of. Heading in note to her picture right now is not really going anywhere because that's than -- -- the income line. It's pretty flat spot. And nevertheless. -- -- action is actually paying off a little ones they even though the even though they come on the spot. Actually that generate more profit that's keypad that is thanks for management action that fly. To -- intensive. The cost cutting program it seems to be. This sort of continuous ability to take cost out of HSBC. And big lead -- -- -- organization. Not surprising that it's possible that the that'll lead to wonder how much more there is to play for. If that cost cutting story is thought since kind of run out of run out of -- then you're really left where is. You know keeping the group operates to pick I can for normalization of the the the interest rate cycle. That's where in if you species -- future. Prosperity. Lies. Maybe some whale for how the kind of -- sustained recovery but in the meantime is pretty sell the friendly. Company put decent. Dividends full -- -- back. Pistols -- -- says that have responded well to that. And most of the UK and Hong Kong are responsible for more than half the group's profits said I guess picking up from what you just said it. And the economies and those two cases pickup then things will look out for HSBC. Yeah although they should be seen as such. They explore laying it business unit where do you look -- -- always won -- of the business geographically that's that's doing badly in another pot that's been while an -- In in this latest results you see there is some offsets in your perfectly on this -- by -- book is by no means is that consistent picture hands of the site. -- -- -- -- -- OK so about Alcatel Lucent now announcing any capital increase this morning sheriff signed by the still down what do you make of this. Well it's. It's not surprising in a way because. The sense of don't really really well on the new C Michael Holmes. That is clear this is opportunistic it's as strong so lawless as good secondary market. Back to place things lately. The so assessments do this -- sees opportunity. When who says. Risen place and that to the and the kid and strengthen the -- The separate traction is pretty savage thing now. Hard to read but it may just be that the market is going was resolute it's going to be a lot of news. -- to digest. Into the competed with a little bit it indigestion in the market. But import it it makes sense for companies to the -- exports hit some Shepperd straight. Resnick because then it would be a theme of the force satellite. In this process but the group has got a lot of re -- to do if it's not support thirty. -- some pretty tough conditions and and telecoms equipment making. -- -- But one thing to do that put yourself from us for a financial fortunes of the animals in the force when your commitment Brussels. I don't -- keep an eye on this is them Alcatel Lucent's think senate sent Chris that was that Chris Hughes from breaking these. The knowledge and assessing apparently inside what are US breaking each and every day. At 12:30 eastern seventeen that he GMT I'm imagining a home base is what is.
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