Croatia’s prime minister, Andrej Plenković, hinted at move to ensure level playing field
The EU will be unashamedly “political” and block the City of London’s access to European markets if Boris Johnson tries to exempt the UK from its laws.
Croatia’s prime minister, Andrej Plenković, whose country is taking over the presidency of the EU, made the bloc’s intentions clear after the prime minister insisted the UK would not be aligned to the bloc’s regulations.
Continue reading...Like the big banks, big tech uses its lobbying muscle to avoid regulation, and thinks it should play by different rules. And like the banks, it could be about to wreak financial havoc on us all. By Rana Foroohar
‘In every major economic downturn in US history, the ‘villains’ have been the ‘heroes’ during the preceding boom,” said the late, great management guru Peter Drucker. I cannot help but wonder if that might be the case over the next few years, as the United States (and possibly the world) heads toward its next big slowdown. Downturns historically come about once every decade, and it has been more than that since the 2008 financial crisis. Back then, banks were the “too-big-to-fail” institutions responsible for our falling stock portfolios, home prices and salaries. Technology companies, by contrast, have led the market upswing over the past decade. But this time around, it is the big tech firms that could play the spoiler role.
You wouldn’t think it could be so when you look at the biggest and richest tech firms today. Take Apple. Warren Buffett says he wished he owned even more Apple stock. (His Berkshire Hathaway has a 5% stake in the company.) Goldman Sachs is launching a new credit card with the tech titan, which became the world’s first $1tn market-cap company in 2018. But hidden within these bullish headlines are a number of disturbing economic trends, of which Apple is already an exemplar. Study this one company and you begin to understand how big tech companies – the new too-big-to-fail institutions – could indeed sow the seeds of the next crisis.
Continue reading...Prince says private sector needs to lead with green investments towards sustainable economy
Prince Charles has called on the City of London to help protect the environment by investing trillions of pounds into green investments which help create a sustainable economy.
In an interview with the Evening Standard the heir to the British throne said big businesses and City investors must drive a rapid decarbonisation of the economy before the environmental crisis becomes “a total catastrophe”.
Continue reading...Past crashes spawned new thinking and reform but nothing has changed since 2008 banking meltdown, says former Bank of England boss
The world is sleepwalking towards a fresh economic and financial crisis that will have devastating consequences for the democratic market system, according to the former Bank of England governor Mervyn King.
Lord King, who was in charge at Threadneedle Street during the near-death of the global banking system and deep economic slump a decade ago, said the resistance to new thinking meant a repeat of the chaos of the 2008-09 period was looming.
Continue reading...Bank rules surveillance of outgoing head of wealth management Iqbal Khan was ‘wrong and disproportionate’
Credit Suisse has sacked its chief operating officer over an “extraordinary” James Bond-style corporate espionage scandal in which the bank hired private detectives to tail a senior executive and his wife through the streets of Zurich following a row with his boss at a cocktail party.
Switzerland’s second-biggest bank said on Tuesday that Pierre-Olivier Bouée had left with immediate effect after the board of directors ruled that the seven-day spying operation was “wrong and disproportionate and has resulted in severe reputational damage to the bank”.
Continue reading...Martin Shields and Nick Diable are accused of tax fraud in ‘cum-ex’ scandal that exposes City’s pursuit of profit
They have been called “the men who plundered Europe”: a group of cowboy traders, seasoned tax lawyers and mathematical whizz kids who are alleged to have conspired in the heart of the City of London to siphon at least €60bn in taxpayers’ money from the state coffers of several EU countries.
In Britain, the so-called “cum-ex” scandal, named after the complex derivatives juggling act employed, gained little attention amid the frenzied debate around the UK’s departure from the European Union when the fraud scheme was discovered in 2017.
Continue reading...‘Fundamental flaws’ in £32bn takeover proposal mean LSE board sees no merit in it
The board of the London Stock Exchange has “unanimously rejected” an approach by its Hong Kong rival after the Asian bourse made a surprise £32bn bid to take over the 321-year-old City institution earlier this week.
In an uncompromising response to the approach, which the London Stock Exchange Group (LSEG) described as a “significant backward step”, the UK firm said it saw “no merit in further engagement” with Hong Kong Exchanges and Clearing (HKEX).
Continue reading...Some staff in London reported to be in tears after hearing their jobs have gone
Deutsche Bank started slashing thousands of jobs in the City of London and in New York only hours after announcing a drastic plan to reduce its global workforce by 18,000.
Germany’s biggest lender employs almost 8,000 people in the UK, with 7,000 in London, which is one of the main hubs for its global investment bank, where the bulk of the job losses will be focused. The jobs being cut make up about a fifth of Deutsche’s global workforce of 91,500.
Continue reading...Erdoğan’s costly move against currency speculators could prove to have major ripple effects
The battle waged by Turkey’s Recep Tayyip Erdoğan against currency speculators is a classic pyrrhic victory. The show of resolve by the self-styled strongman on Wednesday stopped investors from dumping the lira but at enormous cost in both the short and long term. That Turkey will be damaged is beyond question. All that’s in doubt is how severe that damage will be and whether the fallout will be felt elsewhere. Looking at the fragile state of the global economy, there’s every chance it will be.
The backdrop to the latest instalment of a long-running crisis is that Erdoğan is this week facing important local elections at a time when the Turkish economy is in recession. In an attempt to drum up support, Turkey’s president last week condemned Donald Trump’s decision to recognise Israeli control over the Golan heights, but this proved a spectacular own goal by convincing foreign investors that Ankara was on a collision course with Washington. The lira plunged.
Continue reading...Unions warn merger of two German lenders could put up to 30,000 jobs at risk
Deutsche Bank has confirmed it is in merger talks with rival Commerzbank, putting an end to months of speculation over a potential tie-up that stands to unsettle the German banking landscape.
While the move has been touted as a route to greater profitability for the troubled lenders, unions have warned that the merger could put up to 30,000 jobs at risk.
Continue reading...Exclusive: investigation reveals how Troika Dialog channelled $4.6bn to Europe and US
A charity run by Prince Charles received donations from an offshore company that was used to funnel vast amounts of cash from Russia in a scheme that is under investigation by prosecutors, the Guardian can reveal.
Money flowing through the network included cash that can be linked to some of the most notorious frauds committed during Vladimir Putin’s presidency.
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