Feb 24

1. #finance Morgan Stanley decided to diversify its business (Finimize)

What’s going on?

The company announced one $13B step of buying the online brokerage E*TRADE.

What does this mean?

• After the 2008 crisis, some of the riskier aspects of IB lost their lusters, lots of banks have diversified their businesses in search of stable revenues. Goldman Sachs- consumer banks, JP Morgan – payment and now Morgan Stanley – wealth management
• There is more for E*TRADE than just an eye-catching wealth management service: (1) It will reach 4,000 corporate customers from a business that Morgan Stanley’s already owned and (2) The deal will put E*TRADE’ investors in relief after the last turmoil. 

2. #banking HSBC is downsizing (Finimize)

What’s going on?

The global bank announced its plan to cut off 15% of its workforce (35,000 employees) in one of its biggest overhauls since the financial crisis.

Why should I know?

• HSBC is struggling. Its performance in Europe and America was poor, so this step will free the bank up to focus more on its Asia business (>50% revenue). However, it will need to confront with the ongoing protest and Coronavirus in this continent.
• So do other European banks. They are facing weak economic growth lately, not to mention ultra-low interest rates that have reduced their loan income. Some slashed jobs like HSBC, others go through mergers to curb their costs.

3. #tech How TikTok conquered Indian social media (Quartz)

What is it?

Three reasons why TikTok thrived in the  country that hosts the world’s second largest and fastest-growing internet user base: Great timing, great product and great image building strategy.

Zooming out?

• Great  timing. TikTok entered India in 2017, at the same time as Jio telecom company, who put “data charge” down aggressively, making it accessible for every Indian to go online.
• Great product. TikTok’s user interface is simple with (mostly) images and videos . It cleared the language barrier that other players like Facebook and Twitter have.
• Great image building strategy: (1) Run campaigns promoting education & equality, (2) Support public services and (3) Promote its commitment on data privacy.