Penalty-Hit HSBC Tries a Novel Way to Spot Money Laundering

HSBC Holdings HSBC Holdings first appeared in the trend list this week, followed by the wood and wood industries. The third in the list is another financial company, the private equity group Blackstone Group. As the company is reaching an agreement with Brazil’s Embraer, Boeing is ranked first.

HSBC Holdings (which generates a staggering 8.6% dividend) saw its ratings increase by 40% in the past week.

HSBC’s performance over the past few years has been rather disappointing. Although it is consistent with the entire financial industry, it recently stated that it hopes to use artificial intelligence to fight money laundering. HSBC did not have a group of compliance staff to verify suspicious transactions. Instead, it sought the help of the British startup Quantexa. The company’s software will help screen large amounts of data and compare it with publicly available data to identify transactions.

Using artificial intelligence, the company hopes to save on compliance costs and more effectively find malicious transactions. HSBC Bank was especially affected by suspicious transactions. In the past year, HSBC was fined billions of dollars because it failed to stop money laundering.

The company’s stock price has fallen by nearly 6% since the beginning of the year, despite rising more than 3% in the past five days. HSBC has performed poorly in recent years, and a large part of this is due to penalties for handling transactions related to criminal activities.

The wood and lumber stocks paid for this week’s dividends ranked second, and the ratings increased by 39%, not far from HSBC.

As the economic recovery in the United States and Canada has led to a housing market that has had a major impact on the industry, the wood and lumber industry has performed well in recent years. Norbord (OSB) has always been a leader in the wood industry. In the past 12 months, its sales have increased by 151%. Due to strong housing starts in the United States and the booming business in Europe, its adjusted income in 2017 increased by one year from the previous year. More times. Norbord also paid the second largest dividend, 4.73%, and Enviva Partners (EVA) yielded nearly 9%.

The Blackstone Group (BX)’s traffic in the past week has increased by 36% because readers are attracted by the relatively stable stocks and high dividends of private equity firms. The private equity group manages $430 billion worth of assets. The stock price has fallen by more than 1% in the past five days, and has widened the losses so far this year to more than 3%. However, Blackstone’s annual dividend of up to 11% a year offsets the poor performance of the stock.

As part of the US$40 billion U.S. infrastructure fund that was launched with the Saudi Public Investment Fund, Blackstone’s share price fell as it is trying to raise 20 billion U.S. dollars. According to some media reports, Saudi Arabia has contributed 20 billion U.S. dollars, but Blackstone has been working hard to improve its role. As of the beginning of April, Blackstone Group raised only US$575 million, which is only 3% of the total target.

Due to the establishment of the Investment Committee, investors were hesitant to invest in new funds despite their disagreement with Saudi officials, although Blackstone itself stated that its relationship with Saudi Arabia has never been stronger.

Aerospace equipment maker Boeing (BA) saw its ratings increase by 35% in the past week as the company is about to reach an agreement to acquire Brazil’s Brazilian company Embraer. Boeing, which pays more than 2% a year, has had its stock price up to 83% last year, despite falling nearly 3% in the market turmoil in the past five days.

Boeing and Embraer are considering establishing a joint venture controlled by the former to combine marketing, manufacturing and engineering efforts to save costs. The negotiations between Boeing and the Brazilian government that owns the so-called gold share of Embraer have progressed smoothly, but the final agreement is far from reaching an agreement.

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