Posts Tagged ‘Jeremy Diamond’
7 charts to back this article
By Silla Brush. March 26, 2021,
A month after Britain voted to leave the European Union, Boris Johnson was asked whether he thought the finance industry would keep its rights to trade freely in the bloc. “I do, I do,” he told reporters. It was never that simple.
Half a decade later, billions of dollars in assets and thousands of jobs have moved to the continent after the U.K. negotiated a bare-bones trade deal with the EU that largely sidelined finance, giving cities across the bloc the chance to lure firms in flux.
While the two sides may be just about to ink an agreement to cooperate on financial regulation, neither expects the return of business as usual.
European cities like Amsterdam, Dublin, Frankfurt and Paris have each captured some of the shifts so far, although none has emerged as the clear winner yet.
Some of these changes, like share trading volumes, happened overnight.
In other areas, like jobs, it is more of a slow drift as firms and individuals try to work out which city in the evolving post-Brexit landscape suits them best.
Dutch Domain
Amsterdam toppled London as Europe’s share trading capital after Brexit
Source: Cboe Global Markets
Note: Figures reflect average daily value of shares traded
“We will have Frankfurt, Amsterdam, Paris and Dublin all in the mix to take some part of the financial system,” Mairead McGuinness, the bloc’s commissioner for financial services told journalists in March. “Markets will decide that and are probably best placed to do that.”
The situation remains fluid and the eventual outcome uncertain.
The U.K. and EU are due to sign a memo of understanding at the end of March to cooperate on financial rules, which might smooth the path to greater access for British firms through so-called equivalence rulings in future.
Some flows might change direction as the U.K. starts to set its own rules outside the single market, while areas key to London’s decades-long dominance as a financial center — including the clearing of trades — have proven sticky so far.
“I don’t think you can create a financial center,” said Douglas Flint, chairman of U.K. fund manager Standard Life Aberdeen. “The EU’s challenge is one of where do you choose to locate such a center and how do you get other EU competing countries to cede whatever activities they host.”
But if the first three months of 2021 are any indication, Brexit could remake financial centers across Europe in the coming years.
Here’s what has happened so far:
Share Trading
European equity markets opened on Jan. 4 to a once-in-generation, “big bang” shift.
Nearly all of the trading volume in shares of European companies that was handled in in the U.K. bolted to the EU.
London soon lost its crown to Amsterdam as the continent’s top place to buy and sell shares. Trading in Swiss equities, which had been blocked while Britain was a member of the EU, resumed in February, helping to increase business on U.K. platforms.
Britain is now hoping to boost equity markets by making it easier for companies to go public in London.
Amsterdam Rising
Trading in EU shares bolted from London when markets opened in January
Source: Cboe Global Markets
Swaps Trading
London has long been a global center for interest rate swaps trading, recently beating out New York and cities across Europe and Asia.
But the City took a hit to its dominance after the EU blocked firms based inside its borders from trading certain benchmark contracts on London-based platforms.
Seeing a rupture in markets between the EU and U.K., some banks routed business to Wall Street instead, where both jurisdictions allow trading, although London is still a dominant player when off-facility trading is included.
Swaps Switch
London trading venues see business flee to Wall Street, Europe
Source: IHS Markit
Note: Market shares for on-venue trading. Off-facility trading isn’t included.
Derivatives Clearing
One key part of the financial market has yet to face much disruption: derivatives clearing.
London Stock Exchange Group Plc’s clearinghouse, LCH, won a decision from the EU that allows it to handle European business through June 2022.
The EU is making clear, though, that it wants the balance of power to shift, drawing more euro-denominated business inside its borders. The Bank of England has already vowed that the U.K. will resist any EU move to force business to relocate.
Clearing Prize
London’s LCH clearinghouse dominates euro interest rate swap marke
thttps://www.bloomberg.com/toaster/v2/charts/8153b5434bdd4c4bac47fead04b5474c.html?brand=business&webTheme=light&web=true&hideTitles=true
Source: Clarus Financial Technology
Note: Market share is for cleared notional business
Investment Banking
Initial public offerings are another area where the Square Mile continues to overshadow its continental rivals.
Listings in the U.K. are firmly on course for a record first quarter, with companies from bootmaker Dr. Martens to Russian discount retailer Fix Price raising a combined $7.2 billion. That’s before the U.K. government’s proposed loosening of listing requirements takes effect.
Lion’s Share
London’s IPO market is on track for a record first quarter
Source: Bloomberg
Note: Data is for 2021 IPO proceeds through March 24
M&A bankers are also enjoying a bumper year.
Foreign companies’ acquisitions in the U.K. have nearly tripled this year to $66 billion, a record for that time period, according to data compiled by Bloomberg.
Takeovers of publicly-traded U.K. companies have risen more than sevenfold. This may reflect weakness rather than strength.
British companies have become more vulnerable targets as the valuation gap between local stocks and other major markets widened over the past year.
Jobs and Assets
Finance firms have announced that about 7,600 jobs will move from the U.K. to the bloc, according to a study by consultancy EY.
About 1.3 trillion pounds ($1.8 trillion) of assets are also on the move.
Dublin has attracted the largest absolute numbers of firms of all types relocating to the bloc. Frankfurt and Paris have also been popular among larger firms like universal banks, investment banks and brokerages.
London’s Loss
Thousands of finance jobs have relocated to the EU since Brexit
Source: EY, Bloomberg estimates
Note: Figures are approximate
Property Prices
While tax changes and a comparatively sluggish U.K. economy have had the biggest impact on property prices, Brexit uncertainty and the migration of Brexit bankers may be exacerbating existing trends in property prices.
Since the U.K. voted to leave the EU, London property prices have increased by 6%, compared to a fifth in Dublin and Amsterdam’s 40% rise.
Home Alone
London property gains trail EU hubs’ since Brexit referendum
Source: Knight Frank research
Note: Prices are for mainstream properties, rebased to 2016
— With assistance by Aoife White, Swetha Gopinath, Ben Scent, Jack Sidders, and Jeremy Diamond
U.S. Army officers lie routinely: Worse than US politicians?
Posted by: adonis49 on: February 22, 2015
U.S. Army officers lie routinely: Worse than US politicians?
Washington (CNN)
U.S. Army officers often resort to “evasion and deception,” and everyone at the Pentagon knows it, according to a new study conducted by the U.S. Army War College.
“In the routine performance of their duties as leaders and commanders, U.S. Army officers lie,” reads the study, which was conducted by the War College’s Strategic Studies Institute.
Study: ‘U.S. Army officers lie’ routinely
By Jeremy Diamond, CNN. February 19, 2015
The 33-page report, compiled following interviews with officers across the Army, concluded that the Army’s culture is rife with “dishonesty and deception” at all levels of the institution — from the most junior members to senior Army officials.
The study’s results come after Secretary of Defense Chuck Hagel — who officially left his post Tuesday — had raised concerns over ethics in the military.
Rear Adm. John Kirby, the Pentagon’s press secretary, said two weeks ago that Hagel was “deeply troubled” over a spate of ethics investigations in the military.
“I think he’s generally concerned that there could be at least at some level a breakdown in ethical behavior and in the demonstration of moral courage,” Kirby said of Hagel.
And last week, days before Defense Secretary Ash Carter succeeded him, Hagel wrote a memo to the U.S. military’s most senior leaders emphasizing the need for increased accountability and a higher standard for ethical behavior — including among the military’s senior leaders.
“The vast majority of our senior leaders are men and women who have earned the special trust and confidence afforded them by the American people.
However, when senior leaders forfeit this trust through unprofessional, unethical or morally questionable behavior, their actions have an enormously negative effect on the profession,” Hagel wrote.
Hagel urged the military leaders to “strengthen your cultures” and “assess gaps and close them.”
The senior officials who received the memo likely didn’t learn anything new as the War College’s study published this week indicated that senior leaders — both civilian and uniformed — also take part in the dishonesty and ethically questionable behavior, or are at least aware of that behavior.
The study describes a “culture where deceptive information is both accepted and commonplace” and where senior officials don’t trust the information and data receive — such as compliance with certain Army training requirements or forms outlining how a mission was carried out.
But Army officers are faced with an increasing number of requirements and bureaucratic hoops, according to the study, and rather than work with a rigid military brass to reform a burdensome bureaucracy, officers will simply sidestep those requirements, lying on forms and often rationalizing their answers.
The result?
“Officers become ethically numb,” explains the study, which was conducted by Leonard Wong, a research professor at the Strategic Studies Institute and retired Army officer, and behavioral sciences Professor Stephen Gerras, who held company and battalion command roles during his 25 years in the Army.
“Eventually, their signature and word become tools to maneuver through the Army bureaucracy rather than symbols of integrity and honesty,” the researchers wrote.
“This desensitization dilutes the seriousness of an officer’s word and allows what should be an ethical decision to fade into just another way the Army does business.”
The study also comes after a string of high-profile ethics scandals involving senior military leadership in recent years, from a cheating scandal involving nuclear missile officers last year and a still-ongoing federal investigation into one of the biggest corruption affairs in the Navy’s history.
Adonis Diaries 