HSBC needs to re-learn its ABCs, or better still, its KYCs February 18, 2015 PLAC, CRD-4, the FCA and the PRA: but for HSBC, the most important acronym in the banking lexicon right now is KYC (Know Your Customer). Since inheriting the reins of Europe’s largest bank four years ago, Stuart Gulliver has rarely been out of his firefighter’s overalls. On many of those occasions it was the bank’s [...]
The sea change in private banking: Why HSBC is right about the industry February 18, 2015 The HSBC revelations have been coming thick and fast this past week, and the bank has had to go so far as to apologise for its previous behaviour. It has been adamant that things are now different and that the transgressions of prior years are history. The real question is, can we take them at [...]
It’s time the City – and the UK – show support for a capital markets union February 18, 2015 Few people have anything good to say about the European economy. The pipes, they say, are clogged up – and even if they can be unblocked, they are rusting away. Brussels is normally seen either as a blockage, or as a hapless plumber who can’t figure out a solution. But work is progressing in Brussels [...]
Creaking mindsets: Why businesses are about to learn some hard lessons February 18, 2015 Are we experiencing a revolution in the way that organisations operate? A recent essay in the Harvard Business Review has caused a stir by claiming that we are. The authors, Jeremy Heimans and Henry Timms, draw a distinction between institutions that are defined by “old power” and “new power.” The former rely on the exclusive [...]
Ringing the changes: Why Britain’s retail bond market has life in it yet February 17, 2015 The London Stock Exchange (LSE) is celebrating the fifth anniversary of its Order Book for Retail Bonds (ORB) today. The trading platform enables retail investors to buy and sell corporate bond issues. Corporate bonds should be an important asset class for retail investors. They generally offer higher interest rates than many bank and building society [...]
Mass immigration must become a feature in the debate about inequality February 17, 2015 Inequality is now a buzzword in Britain. Scarcely a week goes by without a new publication by an academic or journalist lamenting the levels of poverty facing swathes of the population. And they are bolstered by a complicit metropolitan liberal elite, who shed crocodile tears for the poor, while ruminating on the current situation. Unfortunately, [...]
Record low inflation should not rule out a post-election rate rise February 17, 2015 The long-term view of UK inflation is much more positive than January’s figures suggest. Yesterday’s numbers showed that the UK inflation rate has fallen further – to 0.3 per cent. But the decline is showing signs of bottoming out – and temporary fluctuations should not distract us from this. Excluding food, drink, tobacco and energy, [...]
Smart materials: Why the future face of manufacturing matters to investors February 16, 2015 The traditional resources services sector had a challenging year in 2014. While growth rates have trended positively in most parts of the world, resources equities and commodity prices, including oil and gold, declined because of uncertainties and increased supply. Longer term, population growth and demographic shifts will alter consumption patterns and place additional strain on [...]
Universal credit holds promise – but it is just the beginning of welfare reform February 16, 2015 Forget all the populist welfare crackdowns dominating the election headlines over the past week. These are small fry compared to the gargantuan task of rolling out the government’s long-awaited “universal credit” – a project that it insists will transform welfare forever. The scheme, which merges six benefits, including jobseekers’ allowance, tax credits and housing benefit [...]
Professional services must act now and join the digital revolution February 16, 2015 No industry is immune from digital disruption. And any business would be foolish to think that it is a phenomenon limited to specific sectors or models. The possibility of being ousted by an innovative startup is just as applicable to an industry like professional services as it is to, say, media and communications – or [...]