Wednesday, March 9, 2011

ENGLAND

Britain's biggest bank, which has been headquartered in the capital for 19 years, warned key investors that last week's disappointing full-year results have made arguments for shifting HSBC's domicile to Hong Kong "overwhelming".

The shareholders have been surprised by the swift gear-change in HSBC's review of its domicile but some have already told the bank that they would support the move.

            The loss of HSBC's headquarters in London, although threatened for months because of the increase in financial regulations, would be a severe blow to the Coalition which, despite some of its 'banker bashing' rhetoric, is relying on a private-sector-led recovery.

            One top institutional investor in HSBC told The Sunday Telegraph: "HSBC has a review of its domicile every three years, normally it's a formality, this time we were told that a move is now more than likely."

Another shareholder added: "Instinctively we were very surprised by the change of tone. But you can't argue with the numbers. Moving to Hong Kong could deliver a 30pc premium [to the share price] overnight."

CANADA

Canada’s economy accelerated more than forecast from October to December on the biggest jump in exports since 2004 and faster consumer spending.  Gross domestic product expanded at a 3.3% annual pace in the fourth quarter following a 1.8% expansion in the previous three months…”