2023-11-20 11:51

HONG KONG, Nov 20 (Reuters) - HSBC (HSBA.L) is on track to meet a target of expanding its China wealth business headcount to 3,000 by 2025, despite the country's current economic headwinds, as it bets on a steadily rising number of the extremely affluent, a senior executive said. The Asia-focused bank has recruited around 1,500 wealth managers in the world's second-largest economy since 2021, Trista Sun, HSBC China head of wealth and personal banking, told Reuters. The expansion of the China wealth advisory team serves HSBC's digital-focused "Pinnacle" strategy, part of a pivot towards Asia with $3.5 billion worth of investments committed to the region in 2021. The growing headcount is in addition to wealth advisory staff in HSBC's Chinese branches, Sun said. Most foreign banks still rely on in-branch wealth planners to serve clients in China. HSBC is pressing ahead with the hiring plan as China's wealth and insurance sector is expanding faster than the country's economy is expected to, she added. The bank estimates that China's household wealth will increase by around 8.5% a year over a five-year period starting 2022, outpacing Beijing's around-5% annual target for 2023 economic growth which many fear will be a struggle to reach. Under Pinnacle, HSBC runs an insurance brokerage unit which in September became the first qualified foreign-owned broker to distribute mutual funds locally. The bank's targeted wealth clientele - adults with a net worth of at least $250,000 - is expected to double to 350 million by 2030 in China, the bank estimates. A weaker Chinese yuan has bolstered demand for offshore investment options, with Sun pointing to the quota-based Qualified Domestic Institutional Investors programme (QDII) and Wealth Management Connect scheme covering China's wealthy Greater Bay Area as investors seek "exposure to the international market". The London-headquartered bank has expanded its QDII offer with the acquisition of Citigroup's (C.N) China consumer wealth management business in October this year, Sun said. (This story has been corrected to change the year to 2021, from 2011, in paragraph 2) https://www.reuters.com/markets/asia/hsbc-track-meet-china-wealth-hiring-target-despite-economic-headwinds-2023-11-20/

2023-11-20 11:40

OPEC+ to consider whether to make more supply cuts -sources Crude prices plunge almost 20% since September Goldman says deeper OPEC cuts should not be ruled out HOUSTON, Nov 20 (Reuters) - Oil prices climbed more than 2% on Monday as further supply cuts in OPEC+ production are expected to be announced following a meeting of member countries early next week. Brent crude futures settled up $1.71, or 2.1%, at $82.32 a barrel. The front-month December West Texas Intermediate crude (WTI) expired at $77.60, up $1.71, or 2.3%. The more active January futures gained $2.39 to $77.83, up 1.8%. Both benchmarks have plunged for four straight weeks, but started to rebound on Friday, settling 4% higher on profit-taking and after three OPEC+ sources told Reuters that the producer group, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, is set to consider whether to make additional supply cuts when it meets on Nov. 26. "The OPEC commentary signalling further cuts came right on cue," said John Kilduff, partner with Again Capital LLC. "I would expect any cut would be modest. The Saudis have cut so much production, I don't know how much more they can do." Goldman Sachs said that based on its statistical model of OPEC decisions, deeper cuts should not be ruled out given the fall in speculative positioning and in timespreads, and higher-than-expected inventories. Oil prices have dropped almost 20% since late September as crude output in the U.S., the world's top producer, held at record highs, while the market was concerned about demand growth, especially from China, the No. 1 importer of oil. Last week, inter-month spreads for Brent and WTI slipped into contango, where prompt barrels are cheaper than those in future months, signalling ample supply. Traders were also watching for signs of demand destruction from a possible U.S. recession in 2024 and also considering last week's warning about possible deflation from Walmart (WMT.N), the largest U.S. retailer. But most of all, traders were waiting for the OPEC+ meeting set for Sunday. Andrew Lipow, president of Lipow Oil Associates, said members will be focused on supply and demand and not using crude as a weapon against the U.S., which is supporting Israel in its seven-week-old war against Hamas. "Some of the countries are concerned about the war spreading to a regional conflict," Lipow said. "They want to see their oil continue to flow." https://www.reuters.com/business/energy/oil-extends-gains-opec-mull-deeper-cuts-2023-11-20/

2023-11-20 11:37

Nov 20 (Reuters) - Canadian miner First Quantum Minerals (FM.TO) on Monday said it has further reduced ore processing at its mine in Panama, as blockades at a local port have disrupted shipments of supplies needed to power operations. Without shipments arriving at the mine’s Punta Rincon port, the company expects to run out of supplies for the on-site power plant this week. The port blockade is part of ongoing protests which began after the Panamanian government and First Quantum signed a new contract on Oct. 20 for Cobre Panama, a major copper mine operated by the company's local unit Minera Panama (MPSA). The demonstrators say the new terms are too generous to First Quantum and allege corrupt practices in the approval of the contract. The company has denied the allegations. If the "illegal actions" continue to prevent the delivery of supplies necessary to operate the power plant, MPSA will ramp down the remaining processing train this week and temporarily halt production, the company said in a statement. https://www.reuters.com/markets/commodities/canadas-first-quantum-further-slows-operations-panama-mine-2023-11-20/

2023-11-20 11:35

LONDON, Nov 20 (Reuters) - British Prime Minister Rishi Sunak will announce a new science initiative to bring together work on developing climate-resilient crops as his government hosts a Global Food Security Summit in London on Monday. The summit, a joint initiative between Britain, Somalia, the UAE, the Children’s Investment Fund Foundation and the Bill and Melinda Gates Foundation, is due to be attended by representatives from more than 20 countries. "We must take action to address the underlying, and often unseen, causes of global food insecurity," Sunak said. "From the impact of Russia’s war in Ukraine, to the effect of major natural disasters on food production ... alongside our partners, the UK is playing a leading role in finding solutions to some of the greatest global challenges of our time." Britain said the new virtual science hub would be led CGIAR, a global research partnership which unites international organisations working on food security, and would link UK scientists with research initiatives to develop crops that can withstand the impacts of climate change and are more disease resistant. The British government will also publish details of a new international development policy document, or White Paper, on food insecurity setting out plans to work in partnership with countries to tackle extreme poverty and climate change rather than just providing aid money. Priorities will include mobilising international finance and harnessing innovation, Britain's Foreign Office said. Britain also said it was providing up to 100 million pounds ($125 million) in humanitarian funding to countries worst hit by food insecurity including Ethiopia, Sudan, South Sudan and Afghanistan, and to countries impacted by climate-related cyclones and drought like Malawi. ($1 = 0.8025 pounds) https://www.reuters.com/world/uk/uk-says-new-science-initiative-work-climate-resilient-crops-2023-11-20/

2023-11-20 11:19

Nov 20 (Reuters) - A spate of filings for spot bitcoin and ether exchange-traded funds (ETFs), including from traditional finance heavyweights, has revived the crypto market that had been crushed by a series of meltdowns last year. A spot crypto ETF would track the market price of the underlying crypto asset, giving investors exposure to the token without having to buy the currency. The SEC has previously denied all spot bitcoin ETF applications citing potential for fraud, but that could soon change after it lost a legal battle in August. Here is a pipeline of filings for spot bitcoin ETFs awaiting approval: Here is a pipeline of spot ether ETFs awaiting approval: Here are some ether futures-tied ETFs that have been approved recently: Sources: filings, media reports, company statements https://www.reuters.com/markets/how-close-are-crypto-markets-first-spot-bitcoin-ether-etfs-2023-11-20/

2023-11-20 11:14

Nov 20 (Reuters) - U.S. Securities and Exchange Commission (SEC) officials have told lobbyists and corporate executives in recent days that the agency's long-anticipated climate rules may scale back some of the most demanding greenhouse gas emissions disclosure requirements that it had proposed. At issue are so-called Scope 3 emissions that account for greenhouse gases released in the atmosphere from a company's supply chain and the consumption of its products by customers, according to people familiar with the conversations. In March 2022, the SEC proposed requiring publicly listed companies to disclose climate risks, including their Scope 3 emissions when they are "material" and when companies have set reduction targets for them. The agency said such information is important for investors' due diligence. Companies pushed back, arguing the data would be hard to produce and legally contentious. Walking back the Scope 3 requirement would represent a win for those in the corporate world that lobbied against the changes and would deviate from European Union rules which would make Scope 3 disclosures mandatory for large companies starting in 2024. In private meetings with representatives of companies and other stakeholders, some SEC officials have said that mandating Scope 3 disclosures could make the rule more vulnerable to legal challenges which, if successful, could tie the agency's hands when writing other rules, according to the sources. Those concerns were fueled by last year's Supreme Court decision curbing the Environmental Protection Agency's power to regulate greenhouse gas emissions. This raised doubts over whether SEC rules would survive a court challenge. Some corporate groups and Republican lawmakers have argued that tackling climate change-related issues exceeds the SEC's authority, and that the rules would be unduly burdensome for companies and cloud truly material information for investors. The sources, who requested anonymity to talk about private conversations, said SEC officials did not indicate that a final decision has been made regarding the emission disclosure rules. Nevertheless, the deliberations indicate that the agency's top brass, led by Chair Gary Gensler, are inclined to back off from the proposal to make Scope 3 emission disclosures mandatory, the sources added. The agency could still pursue a compromise, including requiring only companies that already report Scope 3 emissions for other legal jurisdictions to make disclosures, or letting companies provide the information separate from regulatory filings which would reduce legal liability, according to other industry participants tracking the rule. An SEC spokesperson declined to comment on Scope 3 emissions and when the climate disclosure rules will be finalized. "Based on the public feedback, the staff and the Commission consider possible adjustments to the proposals and whether it's appropriate to move forward to a final adoption. The Commission moves to adopt rules only when the staff and the Commission think they are ready to be considered," the spokesperson said. CALIFORNIA RULES Softening emission disclosures would be a blow for President Joe Biden's agenda to tackle climate change through federal agencies. Biden, a Democrat, has been under pressure from many lawmakers in his party to do more and at a faster pace. Even some advocates of climate action have expressed concerns about the logistical challenges of accurately calculating Scope 3 emissions. Even if the SEC stripped Scope 3 emissions from the rules, companies would be required to disclose emissions they are more directly responsible for, dubbed Scope 1 and Scope 2. For many businesses, however, Scope 3 emissions represent more than 70% of their carbon footprint, according to consulting firm Deloitte. Gensler, a Democrat, must win the backing of the agency's two other Democratic commissioners to pass the rule with a 3-2 majority. Both Republican SEC commissioners are expected to vote against it. One has vocally opposed the proposal. Gensler has raised doubts over whether Scope 3 disclosures are sufficiently "well-developed." This year, California adopted a law that will require companies active in the state to disclose Scope 3 emissions come 2027. Gensler told lawmakers in September this could make the SEC's rule less costly, since many companies would already be producing the information. Corporate lobbyists said companies would still be reluctant to include Scope 3 emissions in SEC filings, because of the risk of shareholder lawsuits. Some voluntary initiatives such as the International Sustainability Standards Board already specify that it is best practice to disclose Scope 3 emissions. Gensler told an event held by the U.S. Chamber of Commerce last month that he hoped the emissions disclosure rules, which received some 16,000 public comments, will survive any legal challenges once they are finalized and adopted. https://www.reuters.com/business/environment/us-securities-regulator-signals-it-may-curb-climate-rule-ambitions-2023-11-20/