Shocks & Stares » Bribery Act H&K\'s Financial & Professional Services Team Blog Tue, 19 Mar 2013 08:00:56 +0000 en hourly 1 Friday Fiver Fri, 01 Apr 2011 15:38:44 +0000 Jonathan Henderson This week the FPS team has been pondering a heady mix of succession, bribery, banking black holes and a Miliband. Of course, it is April 1st and no blog post would be complete without a nod to Fools’ Day. You’ll find a summary of the media’s best efforts to trick us all in today’s Fiver…

Heirs apparent

Many of the most successful and iconic businesses are led by big personalities. Over time these individuals can become synonymous with business and its performance. When the time comes for these leaders to step down, markets and commentators start to speculate about who will replace them.

We saw two examples of this speculation in action this week. There was discussion of the succession plan for both Rupert Murdoch’s News Corp and Warren Buffett’s Berkshire Hathaway.

[Rupert - putting a successor in place?]

In the case of News Corp, James Murdoch the 38 year old son of Rupert was appointed deputy chief operating officer and head of international operations. James’ move from London to New York is seen by many as a stepping stone to ultimately taking his father’s role at the helm.

In the case of Berkshire Hathaway, the resignation this week of David Sokol a chairman of several Berkshire subsidiaries, has raised questions about who will take the reins from the “Sage of Omaha.” Sokol had been widely tipped as the next Chief Executive of Berkshire Hathaway, but his resignation following an investment in Lubrizol throws the door open for other contenders.

Both men will be hard to replace and whoever ends up at leading these companies will have big shoes to fill.

Does Ed Miliband need a game changer?

Last weekend, he was seen making a speech on one side of the TV screen whilst on the other violence erupted at the largely peaceful anti-cuts march in central London, mid-week he announced his engagement to long term partner Christine (congratulations Ed) and it seems everyone wants to put in their two penneth worth, including us. Yes, he had has a bit of a week, but there are two fascinating articles published today on Ed Miliband, the man everyone it seems is keen to discuss, both absolutely worth reading and on two opposite sides of the fence.

[Congratulations Ed and Christine]

Johan Harri on the plan to save Ed Miliband in today’s Independent, calls for Ed Miliband to simplify the way he communicates an argument, champion the real middle class and shift Labour’s economic message back to one of stimulus, as espoused by celebrated economists Joseph Stiglitz and Paul Krugman. A compelling argument and one that could well propel him to electoral success. Peter Oborne, in today’s Daily Telegraph, argues however that Miliband’s plan for power is putting his party back on course in any case. 

Some might argue, that having the Telegraph talk up your talents and the Independent calling for you to champion the real middle class is just about perfection for a Labour leader. We say the game changer may be coming whether he needs it or not in the form of local elections and an AV referendum in May and all bets are on hold ‘til then.

 A Black Rock and a Red Isle….

Thursday was a tale of contrasting fortunes for two of those who have most keenly felt the impact of the financial crisis. On the one hand, Northern Rock’s “bad” bank celebrated a return to profit, albeit a small one, which allowed it to begin paying back the £22bn loan it took from the Government to stay alive back in 2007.

On the other though, Ireland’s government revealed it will have to pour another €24bn into its ailing banks to keep them afloat. The total now stands at €70bn, which as Robert Peston noted is equivalent to half the value of the total Irish economy. Whatever the impact of the cuts (and accompanying protests) in the UK as we trim our budget deficit, some of the figures from Ireland blow them out of the water. For example, unemployment is set to peak at 15.8% and house prices to fall  17% this year and 19% next – figures which as The Times noted are actually far better than originally feared.  

Perhaps the Rock’s outlook isn’t as good as its result imply either. At the same time the results were announced, the man in charge of the Rock’s (and Bradford & Bingley’s) bad loans book issued a warning that customers’ mortgage arrears are likely to rise over the next year as incomes are squeezed. Four years on, and the crisis is still biting.

Calm before the storm – Silence on the Bribery Act comes to an end…

On Wednesday we saw the official guidance of the much awaited (re-written) Bribery Act released by the Ministry of Justice. However, some questions around clarity remain to be answered;  has the fog cleared about what the legislation actually means for business leaders? What do they need to do in the next three months in order to make sure they stay on the right side of the law before it comes into force?

According to the Justice Secretary, Ken Clarke, ‘the ultimate aim of this legislation is to make life difficult for the minority of organisations responsible for corruption, not to burden the vast majority of decent and law-abiding businesses.’ But it seems that in one way or another, companies have been “scaremongered “and have been more burdened than not. According to Clarke’s ‘honest opinion’ millions of pounds need not be spent on new procedures but only time will tell whether companies will reap the benefits or feel the pain.

Fooling around…

As per usual, April Fools’ Day brings out the creative side of the media industry and the Guardian has stolen a march on its competitors today with its announcement that it was dropping standard hostility to the Royals to ‘pledge full-throated support for the British monarchy.’  The outlet has (jokingly) pledged to start a 24-hour wedding blog and ‘recall correspondents from some less newsworthy parts of the globe, such as north Africa’. Following on the Guardian’s lead, we wanted to share with you our top five weird and wonderful favourites from the day:

As if Royal wedding fever wasn’t already high enough, the Daily Mail played a convincing spoof of Kate Middleton shopping for baby clothes… as well as plotting a somewhat unlikely hen do in a local pub.

The Metro  announced the launch of its very own edible newspaper made of corn starch, vegetable oil, gum arabic, water and citric acid followed by a light vanilla scent. Charles Bouquet of the Edible Paper Company commented: ‘We hope it adds flavour to the stories and presents readers with a colourful menu of current affairs.’  These guys look to be enjoying it…

The Sun went pun-tastic with “Planet of the apps”, an exclusive story about animal behaviour experts handing out iPads to five apes in an experiment to keep them alert and happy. Apparently only one of the devices has been broken so far with the zoo expert commenting “We thought they would bang them on rocks but they carry them round as if they were babies.”

And finally, the Daily Express launched the new micro-zimmer for OAPs wanting to get a bit more active on their daily walks. With a top speed of 10 mph the new micro zimmer is ‘lightweight enough for the more agile OAPs to perform bunny hops and mild stunts’, according to its makers. The paper reports retired legal secretary Delia Hargrave, was one of the first to give the new craze a go and reports that it makes a ‘great conversation starter’.

The Daily Mirror reports the latest government tax, ‘the gasp bill’ as a tax we all have to pay on the air we breathe. The air traffic control system will decide different charging rates with those accessing the clean and fresh air of the countryside in areas such as the Lake District paying a much higher price for their clean air than those in built up cities. A Labour backbencher has apparently been quoted as saying “This has literally taken my breath away.”

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