HSBC Up Around 10% After Latest Announcement and ArcelorMittal Gets Rid of Its U.S. Arm
On Monday, HSBC’s London-listed shares jumped around 10% after China’s Ping An insurance raised its stake in the company. Ping An now has an 8% stake in Europe’s largest bank, up from 7.95%.
HSBC’s stock has taken a beating this year as it struggles to make a profit in this low-interest rate environment. The stock is down a total of 50% since January of this year. Maybe this surge of interest from a big company like Ping An will slowly turn things around for the company.
ArcelorMittal is looking to get rid of its U.S. arm for approximately $1.4 billion to Cleveland Cliffs Inc. The company also announced that it will begin a new share buyback program starting on Monday.
For ArcelorMittal, this could mean an improved capital structure and risk profile by eliminating hundreds of millions of dollars of liabilities off their balance sheet. The deal is not yet closed and is expected to be finalized within the fourth quarter of this year, subject to regulatory approvals and customary closing conditions.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.