Feb 23, 2021
HSBC is pushing even harder into Asia and wants to bring back its dividend
This news has been received from: CNN
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Hong Kong (CNN Business)HSBC is pushing even harder into Asia as the bank seeks to shore up its business in the wake of the coronavirus pandemic and ongoing tensions between the United Kingdom and China. It's also bringing back its dividend, a sign that it's optimistic about its ability to navigate the year ahead.The bank — which is still headquartered in London even though it makes most of its money in Asia — told investors on Tuesday that it is planning to "step up" its investments in the region by about $6 billion. It's also shifting more resources there, including relocating some key personnel.HSBC shares fall to 25-year low as fears for China business growHSBC (HSBC) has outlined greater China, southeast Asia, and India as the "key drivers" of its future growth. It specifically wants to build up its presence in mainland China, defend its leading position in Hong Kong and establish Singapore as a wealth management hub.
News Source: CNN
Neither COVID-19, Trump or Facebook have beaten Apple’s earnings – Latest News, Breaking News, Top News Headlines
An analysis by Bloomberg suggests that Cook’s handling of these types of challenges has been to counterattack with the issue of privacy as his weapon, and although it is expected that the talks will continue around the regulation of big techs, and the demand With more manufacturing work within the United States, the arrival of Joe Biden could create a closer relationship.
And although one of Apple’s great allies, Foxconn, continues to build factories in China, the logistics management that the technology company has had, even with the pandemic, has not prevented it from generating income. In addition to maintaining a production of Macs in the United States, which in terms of political diplomacy has earned Cook points.
Apple’s power over suppliers grew after the launch of the iPhone, which was made by Foxconn and which sold four million units in its first 200 days.Dependence on China
For 2009, an iPhone supply manager told Bloomberg: “Apple increasingly took a brute force approach to dealing with suppliers in Asia and just started hitting its suppliers when it came to lead-time negotiations,” he says. the news medium.
In addition, Cook took a more “close” position with Trump. Trump told the Wall Street Journal in mid-2017 that Cook personally promised to build “three great plants, beautiful plants” in the United States, news that Apple did not correct at the time and only a few months later formally inaugurated the Austin factory.
At this plant, Apple intended to start building its iconic iPhones, however they struggled to establish a good supply line for this purpose. According to a former Apple supply chain worker, large quantities of certain components had to be imported from Asia, causing a ripple effect of delays and costs. If a shipment with defective parts arrived, for example, the Texas factory had to wait for the next air cargo delivery; at the Shenzhen factories, supply replacements were a short drive away.
Faced with this problem, Apple preferred to focus its efforts on the manufacture of other equipment, such as Mac, in addition to the fact that the plant served as a source of exemption from tariffs, by the US government, which helped the technology company reduce costs of production.
Cook’s strategy in recent years was also not overshadowed by the factory closures caused by COVID-19, because although commercial flights in and out of China were suspended, Apple hired private jets to carry hundreds of employees into the country to oversee production and testing of the equipment, ensuring that the new models will arrive before the critical holiday season, a person familiar with Apple logistics told Bloomberg.
A longtime Apple operations manager also pointed out to Bloomberg that Foxconn could still produce the first versions of the 2020 iPhone, even at the height of the pandemic. “There is no way you can just walk away from China, especially with Apple volumes,” says this person.