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HSBC to exit M&A and capital markets businesses in UK, Europe and the U.S.

1. HSBC to wind down M&A and equity capital markets in Europe and U.S. 2. The move aims to simplify operations and focus on Asia and the Middle East. 3. CEO Georges Elhedery is leading a cost-cutting overhaul at HSBC. 4. HSBC's London shares fell 0.36% following the announcement. 5. New geographic setup will consolidate into four business units.

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FAQ

Why Bearish?

Winding down critical operations may reduce revenue sources, impacting share prices negatively.

How important is it?

The decision to cut investment banking operations significantly impacts HSBC's strategic direction and revenue.

Why Long Term?

The restructuring could lead to prolonged uncertainty about future earnings and growth potential.

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