HSBC's European equity researchers say it's worse than feared
If you speak to an equity researcher at HSBC today, tread carefully. Sources at the bank say they have been receiving the telephone calls revealing their fates and that it's worse than expected.
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Firstly, multiple sources say that HSBC's "developed Europe" research function is being cut back with around 26 jobs going in London. Multiple sources say the bank's entire team of German equity researchers will be cut. There are unconfirmed suggestions that the cuts extend into the sales team too.
Worse, it seems that researchers who have been spared are being asked to change their focus. People who previously covered developed Europe stocks are allegedly being asked to focus on emerging markets. "It's bizarre as you can't just pivot mid-career," says one.
Some of those already looking for new jobs include Jonathan Day, a former director in industrials research at the bank who left this month after joining from Morgan Stanley in 2021.
The cuts to HSBC's equities team come after the bank announced its intention of pulling back from equity capital markets (ECM) and M&A in the US, the UK and Europe. Some have been questioning whether the European equities business can survive in the circumstances.
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