Hello All! We’re a little late this week, though happily the ever entertaining Matt Muir provided yet another great Web Curios which has probably kept H&K blog readers’ attentions for most of the afternoon. However, we’re still committed to bringing you a round-up of this week’s news from the world of financial and professional services (and yet again it’s been a week not to miss). It’s a little shorter this week, but we hope you enjoy it as always. Thanks to Ed Jones and Jonny H as always.
WE HAVE A DEAL – JUST…..It went down to the wire, involved a very well received slap-up meal, and what most leaders likely found an annoying intervention from the British PM. However, we have a deal on the eurozone which should see it stabilise for at least a few weeks.
The medicine is nothing if not severe though – a 50% writedown on Greek debt held by private institutions (i.e. banks) and £100bn which needs to be found in order to recapitalise banks and prevent them from falling into the abyss (sound familiar from about 3 years ago?).
Will it work in the long or even short term? The jury is definitely out on that one but already things are looking a wee bit wobbly…
THE RICH GET RICHER…THEN RELATIVELY LESS WELL-OFF…THEN RICHER AGAIN…..The info-graphic below from the New York Times captured our attention this week. It tracks the financial fortunes of US citizens dating back as far as the First World War and the original web version can be found here.
The figures are relatively self-explanatory but they highlight how the relative prosperity of each segment of society has evolved over time. The Top Fifth of earners have done particularly well of late and in 2007 the top 1% of earners controlled 23.5% of all wealth. If you’ve been following the remarks of Warren Buffett of late you’ll know that the issue of distribution of wealth is a source of some debate in the US at present and only time will tell whether the 21st century will follow a similar pattern. Today’s figures from Income Data Services only fuelled the fire as well.
WHEN IS AN EMPTY TENT NOT AN EMPTY TENT…..On Monday, the Daily Telegraph (and others) shone an infrared camera on tents at the Occupy London site outside St Paul’s. Their results appeared to show that most of the tents were empty during the night, implying that these were the most fairweather of protestors.
It dealt a severe blow to the credibility of the movement, but not it seems the story may not have been entirely accurate. As The Guardian and others reported later in the week, the technology used to hunt for tent-dwelling heat-producing humans wasn’t entirely equipped for the job at hand. There seems to be little doubt that some protesters are sleeping at home, but probably far fewer than some media outlets tried to claim initially.
TESTING THE WATERS OF IMPARTIALITY…..Andrew Marr wrote in last weekend’s Sunday Times about the Queen on the eve of her diamond jubilee. One thing he noted in particular was that while the Monarch retained a thoroughly impartial stance on political matters, she did still enjoy quizzing ministers on matters of policy.
The same doesn’t quite seem to apply to the other supposedly impartial institution at the top of the British power tree, the Bank of England. In another sign that it is becoming increasingly bold with its statements, the Bank’s director of Financial Stability, Andrew Haldane, gave a bold speech on Monday about the dangers as he saw of the 21st century banking system. His comments received the support of prominent commentators, not least for his conclusion that:
“The words bank and bankrupt have common etymological roots dating from the 13th century. In the 13th century it was bankers bankrupting banks. In the 21st century bankers are still bankrupting banks. But it is no longer just banks. This tells us that the risks from banking have been widely spread socially. But the returns to bankers have been narrowly kept privately”
GOOD WEEK/BAD WEEK…..Silvio Berlusconi is pretty much a no-contest winner for the bad week slot this week, finely topped off by some more lurid accusations on Thursday evening.
Good week though goes to our favourite interviewee of the past year, Noel Gallagher, who gave this gem to Shortlist at the back end of last week. Still got it Noel, still got it.