German chancellor Angela Merkel and Greek prime minister Alexis Tsipras are happy with a short-term fudge, IMF managing director Christine Lagarde wants a longer term solution. Brian Caplen assesses the dilemma facing the troubled southern European country.
The Banker and the Nikkei Asian Review are now sister publications following the Nikkei’s acquisition of the Financial Times in December. We are delighted to present this joint report to coincide with the annual meeting of the Asian Development Bank in Frankfurt in early May.
Out of ideas, out of money, the world's central bankers and governments are now caught in a low inflation rate trap after the failure of quantitative easing. What's more, few are showing an appetite to take the tough decisions to get out of this rut.
Had a bank behaved in the manner in which Apple has recently regarding its refusal to unlock the smartphone of a terrorist, the criticism and fines would have been both swift and sizeable. Brian Caplen argues that tech companies should be as accountable as their financial counterparts when it comes to the war on terrorism.
The global structure of trade and production is changing at a rapid pace, with 3D printing and increasing digitisation at the forefront of this transition. This means that factors such as cheap labour – one of the key elements behind the rise of China, for example – are becoming less and less important, as Brian Caplen describes.
Brazil’s banks have long experience of steering through choppy financial waters and were able to anticipate the country’s current difficulties with a range of pragmatic and forward-looking measures that have rewarded them with increased profits in a shrinking economy.
Barclays has a rich history in Africa, which makes its recent announcement of a retreat from the continent all the more surprising. While new CEO Jes Staley has been diplomatic in explaining the reasons behind this exit, the topic of over-zealous regulation dragging down global banks is again coming under the spotlight.
After BTG Pactual's chief executive, André Esteves, was arrested – if not charged – late last year, the bank’s managers were quick to limit any reputational damage, which included embarking upon a new strategic direction. Brian Caplen charts a turbulent few months for the lender.
The current volatility in markets stems from the policies brought in in the immediate aftermath of the financial crisis. These have now served their purpose, says Brian Caplen, and it is the time for the banking world to move on, unencumbered by red tape, QE and low interest rates, much as it could before 2009.
Bank shareholders disappointed by poor dividend returns in recent years are set for further anguish, according to a report from Oliver Wyman, which says any excess cash should be spent on upgrading technology in order to compete with fintech disruptors.
Two-thousand and sixteen ushered in an uncertain economic climate in many parts of the world, but the prospects for India look strong. However, the country must keep spending in check and continue along its reform path if it is to remain 'the last BRIC standing'.
US presidential favourite Hillary Clinton's recent diatribe calling for further regulatory burdens and fines to be imposed on banks are the last thing the finance industry needs in the aftermath of such a turbulent few years. A spell of reflection would be much more beneficial all round.