LSBF Blog - Global Matters
More and more London-based hedge funds groups are looking across the Atlantic for investment opportunities.
Winton Capital, Odey Asset Management and Cheyne Capital are just a few of the big names refocusing their attention on the US market because the potential there is markedly more pronounced than in Europe.
The Financial Times reported that this strategic change comes on the back of investors in North America “significantly” boosting their allocations to hedge funds, especially in pension schemes.Read more >>
The president of the European Central Bank (ECB) Mario Draghi is offering banks up to $1 trillion (approximately £557 billion) of cheap funding, in the latest effort to boost growth in the eurozone.
Mr Draghi, who was previously the governor of the Bank of Italy, is hoping this stimulus measure will act as a spark for boosting credit and investor activity, as well as ensure the financial system is “flush with cash”, Bloomberg reported.Read more >>
In an information age defined by an interconnected, always on the go mindset, it can be all too easy for small and medium enterprises (SME) not to keep on top of things and maintain a high level of transparency.
The way small businesses operate has changed, and, with the advent of big data, it is becoming increasingly hard to manage the sheer volume of information that is automatically captured.
To streamline operations and ensure that rapport with customers remain solid and mutually beneficial, it pays to invest in technology. The biggest game-changer over the last 20 or so years has been the evolution of customer relationship management (CRM) systems.Read more >>
Amazon has requested permission from the United States’ Federal Aviation Authority (FAA) to test its possibly groundbreaking drones outside of its research laboratory to get a real world feel of the challenges and possibilities of this technology.
In a letter published on regulations.gov, the international e-commerce company explained that its energy to innovate comes from its innate philosophy of delivering excellent customer service – it invents for their benefit.Read more >>
UK Chancellor George Osborne, with Foreign Secretary William Hague, has offered foreign direct investment opportunities to India, hoping to secure lucrative deals to the benefit of the subcontinent and of course Britain.
Mr Osborne is keen to build a strong, mutually advantageous relationship with India’s new Prime Minister Narendra Modi, who is equally enthusiastic about delivering on his election promises to transform the country.Read more >>
Africa has been experiencing something of a startup revolution as of late.
Over the last few years, local entrepreneurs with plenty of ideas and ambitions have been developing products that are focused on meeting the specific needs, and transforming the image, of the continent.
Part of the reason for this recent surge is the increasing presence of technology in Africa.
While there is clearly a lot to do in terms of developing accessible electricity required to power innovation and champion progress, greater wireless connectivity and access to smartphones and computers is having a positive impact on the continent.Read more >>
British retailers have reported their biggest annual decline in prices since June 2006, according to a new survey.
The British Retail Consortium (BRC) revealed that overall shop prices experienced deflation for the 14th consecutive month, falling by 1.8 per cent last month, the “deepest” since its index came into existence.
Another record was achieved with food inflation, which fell to an astonishing 0.6 per cent in June. Meanwhile, non-food items experienced a quickening in deflation, recording 3.4 per cent last month (it was 2.8 per cent in May).Read more >>
The European Central Bank (ECB) is being urged to make a concerted effort to reduce the strength of the euro.
Fabrice Bregier, president and chief executive officer of Airbus, believes that an increasingly strong euro is hampering the ability of the eurozone to grow and thrive.
In an interview with the Financial Times, he called on decision makers within the European Central Bank to focus their attention on cutting the “crazy” strength of the euro.Read more >>
India’s economy is projected to grow by as much as six per cent this financial year, according to new analysis.
The India Economy Survey revealed that the emerging economic giant is likely to experience GDP growth in the value of between 5.4 per cent and 5.9 per cent in 2014/15.
Tabled by Arun Jaitley, India’s finance minister, the survey casts the subcontinent in a very strong position, with plenty of potential for investors home and abroad.Read more >>
The Bank of England has been advised by the British Chambers of Commerce to approach interest rate increases with caution.
In its Quarterly Economic Survey for Q2 2014, the British Chambers of Commerce (BCC) advised the Bank to refrain from “hasty decisions”, arguing that it could limit economic development.
John Longworth, director of the BCC, said that a premature hike in interest rates would potentially hamper the growth of firms that the nation is “counting on to drive the recovery”.
Canvassing the opinions of 7,000 UK businesses, researchers found that growth in certain industries has slowed between April and June. However, the economy is in robust health, showing positive signs and clearly “moving in the right direction”.Read more >>
A new report from research firm High Fliers shows that the graduate recruitment market has returned to pre-recession levels.
Graduates have faced some fairly testing times in the years since the financial crisis took hold. Employment prospects slackened for a while, but a recent flurry of positive data has suggested that the market is getting back on its feet. In fact, a new report from research company High Fliers shows that the UK’s graduate job market is actually back at its pre-recession peak.
The Graduate Market in 2014 shows that organisations that appeared in The Times Top 100 Graduate Employers rose by 2.5 per cent in 2013 from the previous year. That more than reversed the 0.8 per cent decline seen in 2012 and left graduate opportunities performing strongly overall.Read more >>
Education helps equip students with the tools necessary to shatter the glass ceiling on what they could achieve, believes Sir John Major, former Prime Minister of the UK.
We recently spoke to Sir John as part of the LSBF ‘Great Minds’ series. Watch our interview of Sir John here, conducted by former UK Home Secretary and Education Secretary, David Blunkett.Read more >>
Germany has introduced a minimum wage for the first time in the country’s history.
Members of the German parliament approved plans to set the least amount of money a person can earn at €8.50 (£6.80) an hour. The Christian Democrats, led by chancellor Angela Merkel, will work alongside the Social Democratic Party (SPD) in a power-sharing deal to place this new policy in place.
Nations such as the UK and US already have a minimum wage in place but Germany’s €8.50 an hour rate is higher than both of these countries. The UK’s rate was revised in 2013 to £6.31 an hour while the US’ Federal government set the nation’s lowest minimum wage at $7.25 (£4.22) an hour. However, a large number of states including California, Florida and New York have a much higher rate.Read more >>
United States President Barack Obama has attacked the risk-taking, big bonus culture of Wall Street, claiming that it poses a threat to the economic security of the country.
Speaking in an interview with the radio programme Marketplace, he promised that he would do everything in his power to make the financial world more transparent.
Mr Obama said that while a lot had been done in the way of improvements, following on from the credit crunch of 2008, there was still “unfinished business” – the system requires further and deeper reforms.Read more >>
A flurry of high-value IPOs have kept Europe’s markets busy recently, but it seems interest is cooling off.
European markets have seen a rush of high-value initial public offerings (IPOs) in the past few months. London alone has been a hive of flotation activity, but Paris and Frankfurt have also been attractive locations.
On 3 July, ING floated its insurance arm NN Group on the Amsterdam stock exchange in the largest IPO of the year, which valued the company at €7 billion.Read more >>
Sir Jon Cunliffe has warned that the biggest risk to the UK is the housing market, claiming that rising prices, which are escalating upwards faster than people’s incomes, is a particular cause for concern.
The Bank of England’s deputy governor told BBC Radio 5 Live that such a situation is problematic because it leads to “a big increase in the amount of debt in the economy” and equally, the “amount of debt that mortgage holders have”.
Therefore, if left unchecked, it could create the conditions necessary for a financial crisis to unfold, which would be hugely damaging to the UK and, in turn, the rest of the world.Read more >>
Brazil introduced the real two decades ago as part of a bid to beat inflation. But, why do countries launch new currencies?
On 1 July, Brazil celebrated the 20th anniversary of introducing a new currency. The real made a massive difference to the nation’s economy, and it is not surprising that many Brazilians look back negatively on the time before the currency was in use.
But why do countries introduce new currencies, and does it make a difference?Read more >>
Roaming fees around the European Union are set to fall as new price caps take effect.
European Union (EU) price caps have now come into force that could cut data roaming fees in half.
Phone users travelling around the bloc often disable their mobile data to minimise costs, or even invest in a smaller, cheaper feature phone that they can take with them and only pay for what they use. But the European Commission is planning to eventually phase out the high costs associated with roaming.
The first staging post was a 1 July move to reduce the existing price cap for downloading data from 45 cents (36p) per megabyte to 20 cents, while the maximum fee for making calls has dropped from 24 to 19 cents.Read more >>
French bank BNP Paribas has been fined $8.9 billion after it admitted helping clients to breach global sanctions.
French banking giant BNP Paribas has agreed a huge settlement that will see it pay a record $8.9 billion (£5.2 billion) fine, after it admitted helping clients to violate economic sanctions.
The bank has acknowledged widespread wrongdoing which saw the bank disguising transactions for clients in Sudan, Iran and Cuba, even though those countries are subject to sanctions. Prosecutors said that executives in some of the most senior levels of the bank had been aware of the practice, but it continued from 2004 to as late as 2012.Read more >>
Every employee in the UK now has the right to request flexible working, and staff and businesses alike are having to adapt.
As workforce demographics change and technology makes it easier to work in different ways, more and more employers have allowed some level of flexibility for their staff.
But on 30 June, the right to formally request flexible working was extended to every employee in the UK, instead of just those with caring responsibilities. That means 20 million more people can now ask for the opportunity to work flexibly, and their request must be considered in a “reasonable” manner. Only one request can be made in any 12-month period.Read more >>
Africa is only just beginning to fulfil its economic potential as its economies show signs of strong growth.
When Nigeria rebased its economy in April it became the 26th largest economy in the world. Last month Kenya raised $2 billion (£1.18 billion) from institutional investors in its first offering on the sovereign bond market. Angola has even offered financial aid to Portugal as the European country struggles with its debts.
The past year has seen Africa truly arrive on the global economic stage.Read more >>
Barclays will be subject to a fraud lawsuit filed by the New York attorney general.
New York’s attorney general has filed a lawsuit against Barclays over alleged fraud related to “dark pool” operations – where clients trade big blocks of shares while keeping prices private.
According to a statement from Eric Schneiderman’s office, Barclays is accused of boosting its dark pool’s market share by making false claims about its operations. Rather than safeguarding clients from “aggressive” high-speed traders as it has claimed, the bank allegedly ran its dark pool so that it favoured them. The rest of the charges also look very serious.Read more >>
Mergers and acquisitions deals volumes at a global level are at a seven-year peak.
Appetite for striking huge corporate deals is returning, as it has emerged that international mergers and acquisitions (M&A) deals are at their highest level for seven years.
The value of M&A deals around the world in the first half of 2014 stood at $1.75 trillion – an impressive 75 per cent increase on the same period last year, and the highest level in seven years. Yet the actual number of deals actually fell slightly, indicating a rise in the prices being set on target companies.Read more >>
Here’s our guide to all the major business news from June.
Welcome to our business news round-up for June 2014. In this round-up of the most important business news stories from around the world, we point you to some of the biggest news stories that have had people talking during the past month.Read more >>
An increasing number of entrepreneurs in India are acting as angel investors for new companies.
India’s recent emergence as a major economic power has been accompanied by the success of a number of exciting startups that are now worth billions. But the entrepreneurs behind these firms are now using their success to give a boost to younger businesses and talent.Read more >>