HSBC CEO’s Sudden Departure Signals Deteriorating Outlook
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HSBC Holdings Plc’s second-quarter results look solid but the unexpected departure of its chief executive would seem to indicate the bank is preparing itself to contend with a much weaker outlook, JPMorgan Chase & Co. says.
Keefe, Bruyette & Woods says the bank needs to find a replacement for outgoing CEO John Flint who will take a “more dynamic” approach to fixing underperforming parts of the business because the outlook indicates life is going to get tougher. Low rates and geopolitical risks, the latter demonstrated by developments inHong Kong and in U.S.-China relations, will make the operating environment tougher going forward, analysts say.