HSBC Holdings PLC - HSBC STOCK NEWS

HSBC's Global Entrepreneurial Wealth Report 2024 reveals that 94% of U.S. high-net-worth and ultra-high-net-worth entrepreneurs are optimistic about future business prospects, with 88% expecting wealth growth in the next 12 months. The study surveyed 1,798 business owners across ten markets with at least $2 million in investable assets. Key findings show that 41% of U.S. entrepreneurs actively contribute to charitable causes, while 44% plan business succession. Despite 74% feeling government support, inflation remains a major concern for 43% of respondents. Notable trends include 36% owning multiple businesses and 20% planning exits within five years.

HSBC Bank USA and its affiliates have announced a reduction in their prime and reference rate from 8.00% to 7.75%. The rate change will take effect the following day. This adjustment represents a 0.25 percentage point decrease in the bank's key lending rate.

HSBC Innovation Banking and The Linus Group have published 'Health 2035: A Bold Path Through the Uncharted Future of Health', a report exploring the future of healthcare. The study, based on responses from over 1,000 young physicians aged 21-35, highlights key factors for meaningful change in healthcare:

1. Strengthening trust between physicians and patients
2. Reinventing in-person interactions
3. Implementing innovations to resolve silos and reimagine incentives

The report predicts that Artificial Intelligence will play a significant role in diagnoses (32%) and therapeutic decisions (31%), while only impacting 8% of patient interactions. Top barriers in delivering quality healthcare include administrative burden (45%) and physician reimbursement (39%). The study also emphasizes the importance of preventative care, early diagnosis, and addressing health inequalities in future care delivery.

HSBC Bank USA, N.A. and its affiliates have announced a reduction in their prime and reference rate. The rate will decrease from 8.50% to 8.00%, with the change taking effect tomorrow. This adjustment is significant for borrowers and investors, as it may impact various financial products tied to these rates.

The prime rate is a key benchmark used by banks to set interest rates for a range of consumer and commercial loans, including credit cards, mortgages, and business loans. A reduction in the prime rate typically leads to lower borrowing costs for customers. This move by HSBC aligns with broader economic trends and may reflect changes in the Federal Reserve's monetary policy.

HSBC's Seizing Uncertainty study reveals decision paralysis among US business leaders and individuals. Key findings include:

- 51% of US business leaders find future planning harder
- 47% of Americans feel ill-equipped to make decisions
- 33% regret decisions they've made
- 43% of American women experienced feelings of detachment over the last five years vs. 26% of men
- 79% of business leaders see opportunities in uncertainty, but 28% are paralyzed by it

To address this, HSBC has created a Decision-Making Guide with Professor David Tuckett to help people navigate uncertainty and make more confident decisions.

HSBC Global Private Banking's Q4 2024 investment outlook, 'An Optimist's Guide to a Shifting Landscape', presents a positive view of the global economic situation. Despite a slowing U.S. economy, the bank does not anticipate an imminent recession. The outlook highlights four key investment priorities:

1. Targeting earnings endurance: Focus on companies delivering strong earnings despite moderate global growth.
2. Putting cash to work: Recommends locking in bond yields and using multi-asset strategies.
3. Bridging uncertainty: Suggests volatility strategies and hedge funds to protect against potential market uncertainties.
4. Diversifying in Asia: Emphasizes attractive prospects in Asian markets, particularly Japan, India, and South Korea.

HSBC's Global CIO, Willem Sels, expresses optimism for diversified portfolios, while Jose Rasco, CIO for the Americas, highlights the early stages of a technology revolution as a reason to stay invested.

HSBC has unveiled enhanced benefits for its Premier and Elite credit cards, focusing on increased travel and lifestyle rewards. The HSBC Premier credit card, with a $95 annual fee, now offers a 50,000-point welcome bonus worth over $1,200 in first-year benefits. The HSBC Elite credit card, with a $495 annual fee, provides a 60,000-point welcome bonus valued at over $2,900 in first-year benefits.

Key updates include 3X points on gas and groceries for Premier, 5X points on travel for Elite, and various statement credits for both cards. The Premier card now uses 100% recycled plastic, while both cards feature a notch design to assist visually impaired users. These enhancements aim to reward cardholders for everyday purchases and travel experiences, catering to HSBC's globally connected clientele.

HSBC's Venture Healthcare Report: Shake It Off? analyzes the venture healthcare market in 2024, highlighting both challenges and opportunities. The report reveals:

1. Biopharma saw increased investment, with 51 $100M+ financings in 1H 2024.

2. Healthtech experienced a surge in earlier-stage deals after a decline in 2023.

3. Medical Devices maintained stable investment with a surge in first-financing deals.

4. DX/Tools faced challenges but saw growth investors participating in high-value financings.

The report emphasizes the need for companies to secure new lead investors or consider consolidation/shutdown if relying on dwindling insider-round cash. HSBC Innovation Banking's global teams continue to support the life science and healthcare ecosystem with specialized expertise.

HSBC U.S. Wealth and Personal Banking Head Racquel Oden announced the appointment of Carly Doshi as the new Head of Wealth Planning and International Connectivity. Carly will lead a team providing specialist advice on income and estate guidance, wealth transfer, pre-immigration, philanthropy, family governance, family office advisory, and comprehensive financial planning for both U.S. and international clients.

The addition follows recent appointments of Didi Nicholas and Clark Pingree as Regional Market Heads for North and West markets, respectively. These hires are part of Racquel Oden's growth strategy to support international and high net-worth clients. Carly returns from JP Morgan, where she was Managing Director of Wealth Management and East Division lead. She will report to Mark Pittsey, Americas Head of Global Private Banking and U.S. Wealth.