—— HSBC Considers Combining Commercial and Investment Bank; Roche Experimental Obesity Drugs Show Side Effects; Bank of America Hires Investment Bank Software Veteran; KKR Bullish on Digital Infrastructuce; Amazon to Hire Narrators to Train Audible AI; Apple Unveils iPhone 16; Crypto Fraud Jumps 45% in 2023
1. HSBC Considers Combining Commercial and Investment Bank
HSBC Holdings Plc is considering merging its commercial and investment banking divisions as part of a cost-cutting and efficiency initiative under new CEO Georges Elhedery. This potential restructuring would combine HSBC’s global banking and markets business—which serves large, multinational corporations and encompasses trading and investment banking—with its commercial banking arm.
The merged division would become HSBC’s largest revenue source, contributing approximately $40 billion annually and surpassing the bank’s wealth and personal banking business in terms of revenue. It would also consolidate a workforce of over 90,000 employees, aimed at expanding business with companies of all sizes.
No final decisions have been made yet, and the specifics of any restructuring could still change. HSBC has not commented on the matter.
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2. Roche Experimental Obesity Drugs Show Side Effects
Shares of Roche Holding AG declined after a poster at the European Association for the Study of Diabetes annual meeting revealed side effects associated with the company’s experimental obesity drug, CT-388. The poster, from an early-stage study, highlighted side effects such as nausea, vomiting, and diarrhea, leading to a 4.5% drop in Roche’s stock in Zurich on Monday.
Bloomberg Intelligence analysts noted that the gastrointestinal issues reported with CT-388 might have impacted Roche’s stock performance. They pointed out that the trial poster indicated higher rates of diarrhea and that the severity of adverse events would need further examination.
Roche, which has been investing heavily in the obesity drug market following setbacks in cancer and Alzheimer’s disease research, acquired CT-388 and an experimental obesity pill through its $3.1 billion purchase of Carmot Therapeutics Inc.
The company stated that the safety profile of CT-388 is consistent with other therapies in its class and typically improves with gradual dosage increases, adding that there were no treatment-related study discontinuations or unexpected losses in efficacy.
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3. Bank of America Hires Investment Bank Software Veteran
Bank of America Corp. has appointed Tim Carpenter from JPMorgan Chase & Co. to co-lead its software investment banking practice. Carpenter, who is based in Boston, will join Bank of America as a managing director in December after a leave period. He will work alongside Edward Liu, the bank’s other software co-head.
Carpenter, who was previously co-head of enterprise technology and cloud investment banking at JPMorgan, joined the bank in 2015 from Deutsche Bank AG. Both Bank of America and JPMorgan, as well as Carpenter, have declined to comment on the move.
Earlier this summer, Bank of America also hired Kempton Dunn to focus on software and appointed Kevin Brunner as head of global technology, media, and telecommunications investment banking.
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4. KKR Bullish on Digital Infrastructuce
KKR & Co.’s global infrastructure head, Raj Agrawal, identified industrial assets, such as storage facilities and logistics, as the “next big thing” in infrastructure investment. Speaking at the Barclays Global Financial Services Conference, Agrawal noted that Fortune 500 companies often need these assets for production but may not need to own them. This creates opportunities for selling such assets to improve balance sheets.
Agrawal highlighted that data centers and logistics are already significant areas for alternative asset managers due to trends in high-speed internet adoption and the shift from fossil fuels to renewable energy. KKR estimates a $100 trillion infrastructure investment requirement through 2040.
In the past year, KKR has invested approximately $8 billion in infrastructure, focusing on digital infrastructure, including fiber connectivity and data centers, as well as energy transition.
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5. Amazon to Hire Narrators to Train Audible AI
Amazon’s Audible is starting a new initiative to enhance its audiobook offerings by using artificial intelligence to replicate the voices of select audiobook narrators. The program, which begins this week, will involve US-based narrators training AI to produce audiobook recordings using their voice clones. This move aims to increase the volume of audiobooks available on Audible in a cost-effective and efficient manner while integrating professional narrators into the automation process.
Previously, Amazon offered a “virtual voice” option for self-published authors using generic synthetic voices. Since May, this technology has been used for over 40,000 books on Audible.
The new initiative will expand beyond generic voices by including professional narrators, allowing them to contribute to the evolving audiobook market through AI.
Source: Bloomberg – Audible to Start Generating AI Voice Replicas of Select Audiobook Narrators
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6. Apple Unveils iPhone 16
Apple has unveiled the iPhone 16 and 16 Plus, with a focus on integrating artificial intelligence throughout the device. Key features include:
- Customizable Action Button: This feature, previously exclusive to higher-end models, allows users to personalize quick actions.
- New Camera Control Button: Provides enhanced control for capturing photos and accessing camera functions.
- More Powerful Chip: The iPhone 16 series will include a more advanced chip to improve performance.
The iPhone 16 Pro models will offer:
- Larger Displays and Thinner Borders: Slightly increased screen size and reduced bezel thickness.
- A18 Pro Processor: Equipped with an upgraded neural engine for better AI processing.
- Enhanced Camera Components: Improved resolution and video features, including more cinematic slow-motion capabilities.
These updates reflect Apple’s commitment to integrating AI technology into their flagship products, enhancing both performance and user experience.
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7. Crypto Fraud Jumps 45% in 2023
The FBI reported a significant rise in cryptocurrency-related fraud, with consumers losing over $5.6 billion in 2023, marking a 45% increase from the previous year. Key points include:
- Complaints and Losses: Nearly 69,500 complaints were filed, with cryptocurrency-related cases accounting for about 10% of total financial fraud complaints but almost 50% of the financial losses.
- Market Impact: The resurgence in cryptocurrency values, notably Bitcoin, which more than doubled last year and has risen around 35% in 2024, contributed to increased criminal activity.
- Growing Concern: Michael Nordwall of the FBI highlighted that as cryptocurrency use expands, so does its exploitation by criminals.
The report underscores the ongoing challenges in safeguarding against fraud in the rapidly evolving cryptocurrency sector.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。