1 00:00:02,520 --> 00:00:08,920 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. I'm standing by, of course, 2 00:00:08,960 --> 00:00:13,239 Speaker 1: with Lisa Miguel, who is the USEO of HSBC as 3 00:00:13,280 --> 00:00:15,440 Speaker 1: well as the head of Banking. And it is your 4 00:00:15,480 --> 00:00:18,880 Speaker 1: first interview live since taking the role. You started on 5 00:00:18,920 --> 00:00:21,960 Speaker 1: the first day of January. Yes, you've been moving very 6 00:00:22,040 --> 00:00:25,400 Speaker 1: quickly and have you been met with the craziest markets? 7 00:00:25,440 --> 00:00:27,800 Speaker 1: Could you have expected that this is what you'd be 8 00:00:27,840 --> 00:00:28,480 Speaker 1: walking into. 9 00:00:28,760 --> 00:00:30,920 Speaker 2: Well, thank you so much, Janelli, It's an honor to 10 00:00:30,960 --> 00:00:34,560 Speaker 2: be here. I'm just absolutely thrilled. So look, this is 11 00:00:34,600 --> 00:00:37,400 Speaker 2: a fantastic role as CEO for the US. It is 12 00:00:37,440 --> 00:00:40,599 Speaker 2: a really interesting time to be in the US. The 13 00:00:40,640 --> 00:00:45,360 Speaker 2: market volatility is challenging for clients we have. We're very 14 00:00:45,400 --> 00:00:48,280 Speaker 2: proud of our global connectivity, our global network, the product 15 00:00:48,280 --> 00:00:52,000 Speaker 2: depth that we have, but clients are using this now 16 00:00:52,040 --> 00:00:55,320 Speaker 2: more than ever to help navigate a very difficult environment. 17 00:00:55,400 --> 00:00:57,600 Speaker 1: Yeah, speaking to the environment a little more. The unique 18 00:00:57,640 --> 00:01:01,440 Speaker 1: view you have is HSBC is big global bank and 19 00:01:01,840 --> 00:01:03,800 Speaker 1: for the first time in a long time, you're seeing 20 00:01:03,840 --> 00:01:08,120 Speaker 1: Europe outperform, You're seeing Asia also outperform, and that American 21 00:01:08,160 --> 00:01:11,360 Speaker 1: exceptionalism story come under question. What does that look like 22 00:01:11,400 --> 00:01:13,480 Speaker 1: from your view? And is it sustainable. 23 00:01:13,760 --> 00:01:17,040 Speaker 2: Yes, it's a great question. So we're helping our clients 24 00:01:17,120 --> 00:01:19,319 Speaker 2: navigate the tariffs. Tariffs are nothing new. We have one 25 00:01:19,400 --> 00:01:21,400 Speaker 2: hundred and sixty years of experience, one hundred and fifty 26 00:01:21,440 --> 00:01:24,680 Speaker 2: years in the United States, so we've navigated tariffs before, 27 00:01:25,000 --> 00:01:27,200 Speaker 2: I think. And by the way, we're the number one 28 00:01:27,520 --> 00:01:30,160 Speaker 2: trade bank in the world, did eight hundred and fifty 29 00:01:30,160 --> 00:01:33,320 Speaker 2: seven billion of trade financing last year, So clients need 30 00:01:33,319 --> 00:01:36,880 Speaker 2: our insights now more than ever. I think the challenges 31 00:01:36,959 --> 00:01:41,880 Speaker 2: in the US, Yes, there's uncertainty policy uncertainty. By the way, 32 00:01:41,920 --> 00:01:45,160 Speaker 2: there's still two conflicts on in the world, and so 33 00:01:45,959 --> 00:01:50,320 Speaker 2: leveraging our fifty plus country presence and the expertise that 34 00:01:50,360 --> 00:01:52,840 Speaker 2: we have and the experience that we have developed over 35 00:01:52,840 --> 00:01:57,120 Speaker 2: the years helping clients navigate. You know, I don't think 36 00:01:57,240 --> 00:02:00,000 Speaker 2: that I think clients got a great experience through COVID, 37 00:02:00,120 --> 00:02:02,600 Speaker 2: as much as that sounds, they have the ability to 38 00:02:03,120 --> 00:02:06,440 Speaker 2: navigate a very difficult time and adjust their supply chains. 39 00:02:06,680 --> 00:02:09,040 Speaker 2: So some of those learnings are actually coming into handy. 40 00:02:09,400 --> 00:02:11,720 Speaker 1: Yeah, what does that look like now with that kind 41 00:02:11,760 --> 00:02:15,240 Speaker 1: of experience in the world of trade, trade finance, does 42 00:02:15,480 --> 00:02:18,800 Speaker 1: this set of tariff pressures coming from the United States 43 00:02:18,800 --> 00:02:24,000 Speaker 1: and even reciprocally. Is it jarring to your clients. Is 44 00:02:24,040 --> 00:02:26,640 Speaker 1: it something that is stopping activity in a way that 45 00:02:26,760 --> 00:02:28,040 Speaker 1: is going to be difficult to bring back. 46 00:02:28,120 --> 00:02:31,440 Speaker 2: Yeah, it's a great question. I think it is difficult 47 00:02:31,520 --> 00:02:35,720 Speaker 2: to make long term strategic decisions today. Now we're going 48 00:02:35,720 --> 00:02:37,959 Speaker 2: to know more about the tariffs and what exactly is 49 00:02:38,000 --> 00:02:42,160 Speaker 2: happening April second, so we're standing by on that. However, 50 00:02:42,440 --> 00:02:45,360 Speaker 2: trade needs to happen every day and their flows that 51 00:02:45,400 --> 00:02:49,120 Speaker 2: are important to continue to support. I think clients are 52 00:02:49,400 --> 00:02:53,519 Speaker 2: hesitating a bit on the long term decisions. However, most 53 00:02:53,600 --> 00:02:56,400 Speaker 2: of them are fairly diversified in their supply chains, so 54 00:02:56,440 --> 00:03:01,600 Speaker 2: they can work really well despite the noise. I think 55 00:03:01,680 --> 00:03:04,639 Speaker 2: the other thing about the US is that, yes, there 56 00:03:04,680 --> 00:03:07,360 Speaker 2: might be some weakness in the stock market, Yes GDP 57 00:03:07,520 --> 00:03:10,480 Speaker 2: might moderate, Yes there may be inflation. But we're also 58 00:03:10,560 --> 00:03:13,760 Speaker 2: helping clients do business all around the world, and there 59 00:03:13,800 --> 00:03:17,920 Speaker 2: are growth corridors in areas where we can support what 60 00:03:18,000 --> 00:03:18,680 Speaker 2: they need to do. 61 00:03:19,160 --> 00:03:21,680 Speaker 1: What are those growth corridors, Because back to the question 62 00:03:21,720 --> 00:03:26,079 Speaker 1: about US investors looking to put money abroad, Yes, how 63 00:03:26,240 --> 00:03:28,440 Speaker 1: much are they doing so? How much are they coming 64 00:03:28,480 --> 00:03:30,120 Speaker 1: to you? And said we want to invest our dollars 65 00:03:30,160 --> 00:03:32,560 Speaker 1: outside of the US terra for no terrifs. 66 00:03:32,680 --> 00:03:35,520 Speaker 2: Yes, So it gets to a bit about the importance 67 00:03:35,560 --> 00:03:39,000 Speaker 2: of the US as a deep capital market with you know, 68 00:03:39,560 --> 00:03:43,240 Speaker 2: investors that have significant capital to put to work globally, 69 00:03:43,600 --> 00:03:46,600 Speaker 2: so they are looking to US. I would say there 70 00:03:46,600 --> 00:03:48,760 Speaker 2: are a couple of exciting corridors that we look at. 71 00:03:48,760 --> 00:03:51,280 Speaker 2: One is probably India. You know, six and a half 72 00:03:51,280 --> 00:03:54,160 Speaker 2: percent GDP growth, a billion and a half population, that 73 00:03:54,440 --> 00:03:57,119 Speaker 2: made an India trend. You know, we have a significant 74 00:03:57,120 --> 00:04:00,480 Speaker 2: presence in India, so our history there that's been wonderful, 75 00:04:00,520 --> 00:04:02,760 Speaker 2: the US to India corridor. The other is the Middle 76 00:04:02,800 --> 00:04:05,800 Speaker 2: East with UAE and Saudi the Kingdom of Saudi Arabia, 77 00:04:06,000 --> 00:04:07,880 Speaker 2: where we've been for one hundred and thirty years. We 78 00:04:07,920 --> 00:04:11,080 Speaker 2: have six thousand people, we're three times biggest and bigger 79 00:04:11,080 --> 00:04:15,320 Speaker 2: than the next competitor. And then probably Southeast Asia, Vietnam, 80 00:04:15,360 --> 00:04:19,080 Speaker 2: Indonesia and Thailand. Again, these are areas where I think 81 00:04:19,120 --> 00:04:22,560 Speaker 2: we've got five thousand trade specialists in over fifty countries, 82 00:04:22,600 --> 00:04:25,280 Speaker 2: so we've got the ability to help clients navigate today. 83 00:04:25,360 --> 00:04:26,960 Speaker 1: What about the other way around, how do you talk 84 00:04:27,000 --> 00:04:29,960 Speaker 1: to your counterparts across HSBC in terms of the interest 85 00:04:30,000 --> 00:04:33,320 Speaker 1: coming into the United States. Yes, are people putting dollars 86 00:04:33,320 --> 00:04:36,360 Speaker 1: to work right now on that US exceptionalism story. Are 87 00:04:36,360 --> 00:04:38,719 Speaker 1: they holding off the way you see the public market 88 00:04:38,720 --> 00:04:40,119 Speaker 1: investors doing so now? 89 00:04:40,360 --> 00:04:44,120 Speaker 2: Yes, so I am. I am seeing still investment commitment 90 00:04:44,160 --> 00:04:47,640 Speaker 2: in the United States. And we were just with Governor 91 00:04:47,680 --> 00:04:51,440 Speaker 2: Kathy Hochel and talking through this last week. So there 92 00:04:51,600 --> 00:04:54,840 Speaker 2: is there are new plants, there are commitments. I think 93 00:04:54,880 --> 00:05:00,200 Speaker 2: the PIF made a significant commitment to the President. We 94 00:05:00,279 --> 00:05:03,960 Speaker 2: are still seeing that commitment and you know, the plants 95 00:05:03,960 --> 00:05:07,719 Speaker 2: and the investments in infrastructure. If you think about the CHIPSAC, 96 00:05:07,800 --> 00:05:10,880 Speaker 2: the Inflation Reduction Act, the size and scale of the 97 00:05:10,920 --> 00:05:14,760 Speaker 2: population we are, what do we do twenty nine trillion 98 00:05:14,760 --> 00:05:18,120 Speaker 2: of GDP last year, It's a quarter of the global GDP. 99 00:05:18,480 --> 00:05:21,720 Speaker 2: It's a big consumer market. So you know, the depth, 100 00:05:22,200 --> 00:05:26,440 Speaker 2: scale and ability to grow your business in the US 101 00:05:26,520 --> 00:05:30,400 Speaker 2: is really unparalleled. So we're helping on the inbound side 102 00:05:30,440 --> 00:05:32,760 Speaker 2: as well as the outbound side. But I also think 103 00:05:32,839 --> 00:05:36,000 Speaker 2: that you know, helping clients navigate where should they invest 104 00:05:36,360 --> 00:05:39,760 Speaker 2: where should they build? Are two different things, but we're 105 00:05:39,880 --> 00:05:41,040 Speaker 2: uniquely qualified to do that. 106 00:05:41,120 --> 00:05:45,039 Speaker 1: They're helping clients manage large strategic decisions at a time 107 00:05:45,040 --> 00:05:49,320 Speaker 1: where HSBC is making massive strategic decisions of its own. 108 00:05:49,680 --> 00:05:53,400 Speaker 1: Your CEO, George L. Heathery, had taken over back in September. 109 00:05:53,720 --> 00:05:56,760 Speaker 1: Took over just in January of the US division. He 110 00:05:56,839 --> 00:05:59,760 Speaker 1: said in February that the company is finalizing a review 111 00:05:59,760 --> 00:06:02,839 Speaker 1: of the investment banking divisions. You've scaled back in a 112 00:06:02,880 --> 00:06:05,240 Speaker 1: big way in the United States, So what does your 113 00:06:05,320 --> 00:06:08,200 Speaker 1: business look like today? Where are you not and where 114 00:06:08,240 --> 00:06:09,360 Speaker 1: are you going to operate? 115 00:06:09,640 --> 00:06:12,000 Speaker 2: It's a great question. First of all, I'm thrilled you 116 00:06:12,040 --> 00:06:15,359 Speaker 2: know that George is taking these decisions, because when you 117 00:06:15,520 --> 00:06:18,240 Speaker 2: run a one hundred and sixty year old financial institution, 118 00:06:18,800 --> 00:06:21,400 Speaker 2: you have to be really clear about where you're deploying 119 00:06:21,400 --> 00:06:24,919 Speaker 2: your resources. So that'll be capital, talent investments, and you 120 00:06:24,960 --> 00:06:27,960 Speaker 2: want to invest in technology and AI and continue to grow. 121 00:06:28,480 --> 00:06:32,040 Speaker 2: So he's taken some very bold decisions. He's aligned our 122 00:06:32,080 --> 00:06:35,960 Speaker 2: company into you know, the UK Hub, the Hong Kong Hub, 123 00:06:36,279 --> 00:06:40,920 Speaker 2: the Corporate and Institutional bank, and international wealth and Premiere Banking. 124 00:06:41,480 --> 00:06:46,440 Speaker 2: That's fantastic. It's simplified, it's agile, it's more client focused. 125 00:06:46,800 --> 00:06:49,560 Speaker 2: I think we had an opportunity to do that, and 126 00:06:49,600 --> 00:06:53,560 Speaker 2: he's moving at pace. So here in the US, the 127 00:06:53,640 --> 00:06:57,200 Speaker 2: US contributes significantly over five billion last year to Asia 128 00:06:57,200 --> 00:07:01,680 Speaker 2: in the Middle East through trade immense FX and our 129 00:07:02,200 --> 00:07:05,680 Speaker 2: broader markets business as well as financing. So we're a 130 00:07:05,720 --> 00:07:09,360 Speaker 2: three trillion dollar bank. We are significant, so we can 131 00:07:09,360 --> 00:07:11,960 Speaker 2: support clients in financing. That'll be deck capital markets and 132 00:07:12,040 --> 00:07:15,960 Speaker 2: leverage finance. In the global transaction banking, it'll be as 133 00:07:16,000 --> 00:07:18,720 Speaker 2: I said, the payments business where we processed five hundred 134 00:07:18,760 --> 00:07:21,560 Speaker 2: trillion last year, we do one hundred and eighty eight 135 00:07:21,840 --> 00:07:26,160 Speaker 2: trades a second. And then we also have FAX where 136 00:07:26,160 --> 00:07:29,680 Speaker 2: we're trading at one hundred and thirty currencies as well 137 00:07:29,680 --> 00:07:31,840 Speaker 2: as the trade I referred to. So these are really 138 00:07:32,520 --> 00:07:35,760 Speaker 2: amazing sort of jewel of the crown type of businesses 139 00:07:36,320 --> 00:07:39,080 Speaker 2: and the ability to help clients navigate. So in the US, 140 00:07:39,160 --> 00:07:41,200 Speaker 2: that's where we're going to be focused on the global 141 00:07:41,200 --> 00:07:45,400 Speaker 2: transaction banking and the financing. You know, M and A inequities, 142 00:07:45,800 --> 00:07:49,160 Speaker 2: we were less competitive, so I think, you know, making 143 00:07:49,200 --> 00:07:53,320 Speaker 2: sure that where we have strengths is where we focus. 144 00:07:53,480 --> 00:07:55,480 Speaker 1: How do you explain the commitment that you have to 145 00:07:55,560 --> 00:07:58,520 Speaker 1: the existing investment banking businesses because m and A for 146 00:07:58,560 --> 00:08:00,160 Speaker 1: a lot of other banks had been kind of the 147 00:08:00,200 --> 00:08:02,840 Speaker 1: core of the operation. But you're making debt capital markets. 148 00:08:02,840 --> 00:08:04,160 Speaker 1: It seems like the. 149 00:08:04,160 --> 00:08:06,880 Speaker 2: Core and leverage finance well, because we have the balance 150 00:08:06,920 --> 00:08:09,800 Speaker 2: sheet and we have the ability to support clients in 151 00:08:09,840 --> 00:08:13,680 Speaker 2: our lending multiple lending products, which is highly correlated to 152 00:08:13,920 --> 00:08:16,960 Speaker 2: the capital markets, and so allowing them to access the 153 00:08:17,000 --> 00:08:21,520 Speaker 2: debt capital markets wherever they want to issue is really 154 00:08:21,520 --> 00:08:26,680 Speaker 2: important on the leverage finance side as well. Our financing, 155 00:08:26,840 --> 00:08:30,040 Speaker 2: our powerhouse, our ability to help clients grow and build 156 00:08:30,600 --> 00:08:35,400 Speaker 2: is really unparalleled. So those are our power alleys and 157 00:08:35,520 --> 00:08:38,400 Speaker 2: can help us on the international side to navigate and 158 00:08:38,440 --> 00:08:40,440 Speaker 2: help clients navigate as they grow the business. 159 00:08:40,600 --> 00:08:42,720 Speaker 1: So if you think about the global scale of HSBC 160 00:08:42,920 --> 00:08:46,040 Speaker 1: and the transformation that the bank is enduring, where do 161 00:08:46,120 --> 00:08:48,920 Speaker 1: you say the US is in that transformation story? 162 00:08:49,200 --> 00:08:52,320 Speaker 2: So the US is on a fantastic path and we 163 00:08:52,320 --> 00:08:55,120 Speaker 2: were ahead. I mean, I think we talked about I 164 00:08:55,160 --> 00:08:57,360 Speaker 2: packed my bags and I was here in a few 165 00:08:57,440 --> 00:09:00,679 Speaker 2: days to start, and so we're moving it and I 166 00:09:00,720 --> 00:09:04,400 Speaker 2: haven't seen an organization move this fast in banking. But 167 00:09:04,640 --> 00:09:08,080 Speaker 2: the US is again, you know, the core of the 168 00:09:08,120 --> 00:09:10,760 Speaker 2: business we have in a market share perspective. If you 169 00:09:10,800 --> 00:09:13,880 Speaker 2: think about where HSBC is strongest, we're the number one 170 00:09:13,880 --> 00:09:16,520 Speaker 2: in market share in every product that we care about, 171 00:09:16,920 --> 00:09:19,840 Speaker 2: so you know, payments trade effects a couple of markets again, 172 00:09:19,960 --> 00:09:24,040 Speaker 2: so that is amazing. The other thing to think about 173 00:09:24,160 --> 00:09:27,359 Speaker 2: is that we can bank clients from an innovation banking perspective. 174 00:09:27,400 --> 00:09:30,280 Speaker 2: We have one hundred bankers that are focused on you know, 175 00:09:30,640 --> 00:09:35,760 Speaker 2: healthcare and technology and you know just venture venture stage companies, 176 00:09:36,559 --> 00:09:39,200 Speaker 2: like over a thousand of them. And you know that 177 00:09:39,280 --> 00:09:42,160 Speaker 2: team that we we were able to get from SVB, 178 00:09:42,600 --> 00:09:45,079 Speaker 2: amazing team run by Dave Sabao who's based in the 179 00:09:45,160 --> 00:09:49,160 Speaker 2: United States. As those clients grow and build, we can 180 00:09:49,200 --> 00:09:51,479 Speaker 2: support them as they expand overseas. 181 00:09:51,760 --> 00:09:56,319 Speaker 1: Really an amazing transformation story. Lisa miguel Us, CEO of HSBC, 182 00:09:56,440 --> 00:09:59,239 Speaker 1: we thank you for sharing the story of the transformation 183 00:09:59,280 --> 00:10:01,360 Speaker 1: of the bank and of course for clients are looking 184 00:10:01,400 --> 00:10:02,520 Speaker 1: to invest today.