DUBAI/LONDON: HSBC is considering selling its Turkey business amid concerns about the country’s volatile currency and economic outlook, sources familiar with the matter said.
As part of broader cost-cutting measures under interim Chief Executive Noel Quinn, the bank is also seeking to sell or shrink its business in some other markets, the sources said.
These include countries where it has small-scale operations that struggle to compete with local players, including Armenia, Greece and Oman, they said.
A spokeswoman for HSBC declined to comment.
HSBC will seek to sell its banking business in Turkey if it can find a local buyer, the sources said, adding that no final decision has yet been taken.
The bank’s retreat from Turkey, where it has operated since 1990, would be one of the biggest exits from a country it has made in recent years as it shrinks its once globe-spanning empire.
HSBC has already shrunk its presence from some 315 branches and around 6,000 staff in 2013 to around 80 branches and 2,000 staff as of September last year, according to data from the Banks Association of Turkey.
Turkey has been a problem country for HSBC in recent years as volatility in the lira and economic problems have hit its returns, with the bank flagging rising expected loan losses there in its 2018 annual report.
A currency crisis in 2018 cut the lira’s value by nearly 30%, brought on a brief but sharp recession, and prompted Ankara to clamp down on the financial sector with a series of new rules aimed at stabilizing the currency and kick-starting economic growth.
The lender previously attempted to sell its business in Turkey in 2015, Reuters reported at the time, with Dutch lender ING among the interested parties.
But the sale never went through, and the lender instead pursued branch closures and job cuts that saw it swing from a loss in 2014 and 2015 to a profit of 456 million lira ($77.02 million) in the first nine months of 2019.
Despite that improved performance, the risks from currency volatility and the economic situation mean HSBC still wants to exit, the sources said.
Interim CEO Quinn is expected to announce his cost-cutting measures when the bank reports annual results and its new strategy on Feb. 18.
Quinn is auditioning for the full-time CEO role under chairman Mark Tucker. He is tipped by insiders at the bank to get the job, although it could yet go to a surprise external candidate.
The bank is also shedding around 100 roles in its equities business as it scales back in continental Europe, Reuters reported earlier this month.
HSBC considering exit from Turkey — sources
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HSBC considering exit from Turkey — sources
- HSBC will seek to sell its banking business in Turkey if it can find a local buyer
- A currency crisis in 2018 cut the lira’s value by nearly 30%
South Korean President Yoon arrested over failed martial law bid
- Earlier more than 3,000 police officers and anti-corruption investigators had gathered there before dawn, pushing through throngs of Yoon supporters and members of his ruling People Power Party protesting attempts to detain him
SEOUL: South Korean President Yoon Suk Yeol was arrested on Wednesday over his failed martial law bid, after hundreds of anti-graft investigators and police raided his residence to end a weeks-long standoff.
Yoon, who was impeached and charged with insurrection over his short-lived effort to impose martial law last month, is the first sitting president in the nation’s history to be arrested.
Hundreds of police officers and investigators from the Corruption Investigation Office had streamed up the driveway to the presidential residence before dawn on Wednesday, some scaling perimeter walls and hiking up back trails to reach the main building.
It was their second effort to arrest Yoon.
A first attempt on January 3 failed after a tense hours-long standoff with members of Yoon’s official Presidential Security Service (PSS), who refused to budge when investigators tried to execute their warrant.
Yoon’s lawyer announced on Wednesday morning the president had agreed to speak to investigators and that he had decided to leave the residence to prevent a “serious incident.”
“President Yoon has decided to personally appear at the Corruption Investigation Office today,” Seok Dong-hyeon said on Facebook, adding that Yoon would also deliver a speech.
But investigators announced shortly after that Yoon had been arrested.
“The Joint Investigation Headquarters executed an arrest warrant for President Yoon Suk Yeol today (January 15) at 10:33 am (0130 GMT),” they said in a statement.
AFP reporters earlier witnessed brief scuffles at the gate, where Yoon’s die-hard supporters had been camped out to protect him, as authorities first moved on the compound.
Lawmakers from Yoon’s ruling People Power Party also rushed to the area in an apparent bid to defend him, AFP reporters saw.
His supporters were heard chanting “illegal warrant!” while waving glow sticks and South Korean and American flags. Some laid on the ground outside the residential compound’s main gate.
Police and CIO officers began forcibly removing them from the entrance to the residence while around 30 lawmakers from Yoon’s ruling People Power Party also blocked investigators, Yonhap News TV reported.
Yoon’s guards had installed barbed wire and barricades at the residence, turning it into what the opposition called a “fortress.”
Due to the tense situation, police decided not to carry firearms but only to wear bulletproof vests for the new attempt Wednesday, in case they were met by armed guards, local media reported.
Following his arrest, Yoon can be held for up to 48 hours on the existing warrant. Investigators would need to apply for another arrest warrant to keep him in custody.
Yoon’s legal team had repeatedly decried the warrant as illegal.
In a parallel probe, Yoon’s impeachment trial began Tuesday with a brief hearing after he declined to attend.
Although his failure to attend — which his team has blamed on purported safety concerns — forced a procedural adjournment, the hearings will continue without Yoon, with the next set for Thursday.
A look at the terms — and tensions — in the Israel-Hamas draft ceasefire deal
- In the first week, troops would withdraw from the main north-south coastal road — Rasheed Street — which would open one route for Palestinians returning. By the 22nd day of the ceasefire, Israeli troops are to leave the entire corridor
- During the first phase, Hamas is to release 33 hostages in exchange for the freeing of hundreds of Palestinians imprisoned by Israel
CAIRO: If the Israel-Hamas ceasefire deal goes according to the current draft, then fighting will stop in Gaza for 42 days, and dozens of Israeli hostages and hundreds of Palestinian prisoners will be freed. In this first phase Israeli troops will pull back to the edges of Gaza, and many Palestinians will be able to return to what remains of their homes as stepped-up aid flows in.
The question is if the ceasefire will survive beyond that first phase.
That will depend on even more negotiations meant to begin within weeks. In those talks, Israel, Hamas, and the U.S, Egyptian and Qatari mediators will have to tackle the tough issue of how Gaza will be governed, with Israel demanding the elimination of Hamas.
Without a deal within those 42 days to begin the second phase, Israel could resume its campaign in Gaza to destroy Hamas – even as dozens of hostages remain in the militants’ hands.
Hamas has agreed to a draft of the ceasefire deal, two officials confirmed, but Israeli officials say details are still being worked out, meaning some terms could change, or the whole deal could even fall through. Here is a look at the plan and potential pitfalls in the draft seen by the Associated Press.
Swapping hostages for imprisoned Palestinians
During the first phase, Hamas is to release 33 hostages in exchange for the freeing of hundreds of Palestinians imprisoned by Israel. By the end of the phase, all living women, children and older people held by the militants should be freed.
Some 100 hostages remain captive inside Gaza, a mix of civilians and soldiers, and the military believes at least a third them are dead.
On the first official day of the ceasefire, Hamas is to free three hostages, then another four on the seventh day. After that, it will make weekly releases.
Which hostages and how many Palestinians will be released is complicated. The 33 will include women, children and those over 50 — almost all civilians, but the deal also commits Hamas to free all living female soldiers. Hamas will release living hostages first, but if the living don’t complete the 33 number, bodies will be handed over. Not all hostages are held by Hamas, so getting other militant groups to hand them over could be an issue.
In exchange, Israel will free 30 Palestinian women, children or elderly for each living civilian hostage freed. For each female soldier freed, Israel will release 50 Palestinian prisoners, including 30 serving life sentences. In exchange for bodies handed over by Hamas, Israel will free all women and children it has detained from Gaza since the war began on Oct. 7, 2023.
Dozens of men, including soldiers, will remain captive in Gaza, pending the second phase.
Israeli pullbacks and the return of Palestinians
During the proposed deal’s first phase, Israeli troops are to pull back into a buffer zone about a kilometer (0.6 miles) wide inside Gaza along its borders with Israel.
That will allow displaced Palestinians to return to their homes, including in Gaza City and northern Gaza. With most of Gaza’s population driven into massive, squalid tent camps, Palestinians are desperate to get back to their homes, even though many were destroyed or heavily damaged by Israel’s campaign.
But there are complications. During the past year of negotiations, Israel has insisted it must control the movement of Palestinians to the north to ensure Hamas does not take weapons back into those areas.
Throughout the war, the Israeli military has severed the north from the rest of Gaza by holding the so-called Netzarim Corridor, a belt across the strip where troops cleared out the Palestinian population and set up bases. That allowed them to search people fleeing from the north into central Gaza and bar anyone trying to return.
The draft seen by the AP specifies that Israel is to leave the corridor. In the first week, troops would withdraw from the main north-south coastal road — Rasheed Street — which would open one route for Palestinians returning. By the 22nd day of the ceasefire, Israeli troops are to leave the entire corridor.
Still, as talks continued Tuesday, an Israeli official insisted the military will keep control of Netzarim and that Palestinians returning north would have to pass inspections there, though he declined to provide details. The official spoke on condition of anonymity to discuss closed negotiations.
Working out those contradictions could bring frictions.
Throughout the first phase, Israel will retain control of the Philadelphi Corridor, the strip of territory along Gaza’s border with Egypt, including the Rafah Crossing. Hamas dropped demands that Israel pull out of this area.
Humanitarian aid
In the first phase, aid entry to Gaza is to be ramped up to hundreds of trucks a day of food, medicine, supplies and fuel to alleviate the humanitarian crisis. That is far more than Israel has allowed in throughout the war.
For months, aid groups have struggled to distribute to Palestinians even the trickle of aid entering Gaza because of Israeli military restrictions and rampant robberies of aid trucks by gangs. An end to fighting should alleviate that.
The need is great. Malnutrition and diseases are rampant among Palestinians, crammed into tents and short on food and clean water. Hospitals have been damaged and short of supplies. The draft deal specifies that equipment will be allowed in to build shelters for tens of thousands whose homes were destroyed and to rebuild infrastructure like electricity, sewage, communications and road systems.
But here, too, implementation could bring problems.
Even before the war, Israel has restricted entry of some equipment, arguing it could be used for military purposes by Hamas. Another Israeli official said arrangements are still being worked out over aid distribution and cleanup, but the plan is to prevent Hamas from having any role.
Further complicating matters, Israel’s government is still committed to its plan to ban UNRWA from operating and to cut all ties between the agency and the Israeli government. The UN agency is the major distributor of aid in Gaza and provides education, health and other basic services to millions of Palestinian refugees across the region, including in the Israeli-occupied West Bank.
The second phase
If all of that works out, the sides must still tackle the second phase. Negotiations over it are to begin on Day 16 of the ceasefire.
Phase two’s broad outlines are laid out in the draft: All remaining hostages are to be released in return for a complete Israeli withdrawal from Gaza and a “sustainable calm.”
But that seemingly basic exchange opens up much bigger issues.
Israel has said it will not agree to a complete withdrawal until Hamas’ military and political capabilities are eliminated and it cannot rearm — ensuring Hamas no longer runs Gaza. Hamas says it will not hand over the last hostages until Israel removes all troops from everywhere in Gaza.
So the negotiations will have to get both sides to agree to an alternative for governing Gaza. Effectively, Hamas has to agree to its own removal from power — something it has said it is willing to do, but it may seek to keep a hand in any future government, which Israel has vehemently rejected.
The draft agreement says a deal on the second phase must be worked out by the end of the first.
Pressure will be on both sides to reach a deal, but what happens if they don’t? It could go in many directions.
Hamas had wanted written guarantees that a ceasefire would continue as long as needed to agree on phase two. It has settled for verbal guarantees from the United States, Egypt and Qatar.
Israel, however, has given no assurances. So Israel could threaten new military action to pressure Hamas in the negotiations or could outright resume its military campaign, as Prime Minister Benjamin Netanyahu has threatened.
Hamas and the mediators are betting the momentum from the first phase will make it difficult for him to do that. Relaunching the assault would risk losing the remaining hostages — infuriating many against Netanyahu — though stopping short of destroying Hamas will also anger key political partners.
The third phase is likely to be less contentious: The bodies of remaining hostages would be returned in exchange for a 3- to 5-year reconstruction plan to be carried out in Gaza under international supervision.
Australia summons Russian ambassador over reports captured soldier killed
- Foreign Minister Penny Wong said Australia had been maintaining “a very difficult relationship for many years” with Russia under different governments
SYDNEY: Australia summoned the Russian ambassador over reports a Melbourne man had been killed after being captured by Russia while fighting for Ukraine, Prime Minister Anthony Albanese said on Wednesday.
The Australian government had asked Russian authorities to immediately confirm the status of Oscar Jenkins and remained “gravely concerned” over reports that he had been killed, Albanese said during a media conference.
“We’ll await the facts to come out. But if there has been any harm caused to Oscar Jenkins, that’s absolutely reprehensible and the Australian government will take the strongest action possible,” Albanese said.
When asked by a reporter if Australia would expel the Russian ambassador or recall its envoy in Moscow, Albanese said his government would determine its response after verifying all reports.
Foreign Minister Penny Wong said Australia had been maintaining “a very difficult relationship for many years” with Russia under different governments.
“We will look at the facts when they have been ascertained but I want to be clear all options are on the table,” Wong told ABC Radio on Wednesday. She said the Russian ambassador was summoned by the foreign ministry earlier this week.
Jenkins, a teacher from Melbourne, was serving alongside Ukraine’s military when he was captured by Russia last year as a prisoner of war, Australian media reported. A video taken at the time showed him, dressed in combat uniform, being asked if he was a mercenary, reports said.
Australia is one of the largest non-NATO contributors to the West’s support for Ukraine and has been supplying aid, ammunition and defense equipment.
It has banned exports of alumina and aluminum ores, including bauxite, to Russia, and has sanctioned about 1,000 Russian individuals and entities.
UN Libya mission alarmed by reported torture footage in detention facility
- The UN mission said the footage was consistent with what it described as “documented patterns of human rights violations in detention facilities across Libya”
CAIRO: The UN Libya mission expressed on Tuesday its alarm over what it said was footage circulating on social media featuring “brutal torture and ill-treatment” of detainees at the Gernada detention facility in eastern Libya.
Reuters was not able to independently verify the location nor date of the footage, however architectural details seen on the videos, including the type of tiles on the floor, the wall painting and cell bars are consistent with file imagery of the prison from corroborating reports.
“As UNSMIL continues to verify the circumstances of the circulated footage, it strongly condemns these acts that constitute serious violations of international human rights law,” it said.
The UN mission said the footage was consistent with what it described as “documented patterns of human rights violations in detention facilities across Libya.”
It also called for an immediate investigation into the accusations, adding that it is coordinating with the General Command of Libyan National Army for “unrestricted access to UNSMIL’s human rights officers and other independent monitors to the Gernada facility as well as other detention centers under their control.”
There was no immediate comment from Libyan authorities regarding the videos or the UN report.
The North African country has plunged into chaos and lawlessness after the toppling of the regime of former dictator Muammar Qaddafi in NATO-backed uprising in 2011.
World Economic Forum adds Aramco facility to its Global Lighthouse Network
- The network recognizes industrial sites that use advanced technologies to boost performance, operations and sustainability
- North Ghawar Oil Producing Complex is the 5th Aramco facility to earn a place in the network
LONDON: The World Economic Forum has added Aramco’s North Ghawar Oil Producing Complex to its prestigious Global Lighthouse Network.
It is the fifth Aramco facility to earn a place in the network. The company said the addition honors its efforts to enhance operational and environmental performance.
Nasir K. Al-Naimi, the company’s upstream president, described the achievement as testament to the company’s focus on innovation and operational excellence.
“It validates our journey towards a truly digital and lower-carbon-emissions future, where technology empowers us to optimize our processes, reduce our environmental impact, and deliver exceptional value to our customers and shareholders.”
The Global Lighthouse Network, established by the forum in 2018 in collaboration with management consultancy McKinsey & Company, recognizes industrial facilities worldwide that have leveraged Fourth Industrial Revolution technologies to achieve measurable improvements in financial performance, operations and sustainability, and reduce environmental impacts.
The Aramco facility was one of 17 industrial sites worldwide added to the network on Tuesday. It now comprises 189 facilities worldwide, and Aramco is the only energy company represented by more than three facilities. The North Ghawar site is located in Al-Ahsa Governorate in the Eastern Province.
