Tuesday, November 17, 2015

Barclays picks new chief operating officer for investment bank

Barclays picks new chief operating officer for investment bank

[LONDON] British bank Barclays Plc has promoted the head of its macro markets business to chief operating officer (COO) of its investment bank, tasked with accelerating the restructuring of the business.
The London-based bank has appointed Mike Bagguley as COO for the investment bank with immediate effect, reporting to investment bank chief executive Tom King, according to a memo sent to staff by King and seen by Reuters.
Barclays is slimming down its investment bank to try to cut costs and improve profitability, and King said Bagguley would aim to accelerate delivery of that strategy.
He will also seek to align infrastructure functions and help coordinate and deliver projects and join the investment bank's executive committee, King said. "Our recent third-quarter results further validate the strategic choices we made last year but there is more to do," King told staff in the memo.
Bagguley has overseen the reduction and reshaping of the macro business, which includes interest rates, foreign exchange and commodities products, as trading revenues across the industry have fallen and tougher regulation hit profitability.
Barclays is one of several banks, including Deutsche Bank and UBS, to cut back trading activities and put more focus on areas that have been less hurt by regulation, such as equities and advisory.
Bagguley joined Barclays in 2001 on the fixed income trading desk in London and has held senior roles in Tokyo, London, New York and Johannesburg.
King said Rob Bogucki and Nat Tyce, co-heads of macro trading, and Kashif Zafar, head of macro distribution, would jointly lead the bank's macro products business.
The investment bank has not had a chief operating officer since Justin Bull left in April.
REUTERS

CIMB sees bad loan provisions peaking in Indonesia, Thailand

CIMB sees bad loan provisions peaking in Indonesia, Thailand

[KUALA LUMPUR] CIMB Group Holdings Bhd, Malaysia's second-largest lender by assets, said an improvement in its non- performing loans in Indonesia and Thailand made it "optimistic" about next year's prospects.
The bank has seen the peak in provisions against problem loans at its Indonesian unit while the loan book in Thailand is already improving, CIMB chief executive officer Tengku Zafrul Abdul Aziz said.
"For Indonesia we have taken the provisions much earlier than our competitors and we have seen the peak, so from there we will see improvement," Tengku Zafrul said in an interview Tuesday with Bloomberg Television.
"For Thailand, we have already seen recovery. So we are quite optimistic that next year will be a better year for us."
CIMB doesn't foresee the need for more job cuts among regional banks, said Tengku Zafrul, who became the bank's CEO in February.
"For the next two years I don't think there will be any more cuts, in my case, and even in the industry. A lot of people have started to take that move and things have somewhat stabilised."
CIMB embarked on a cost-cutting program earlier this year after abandoning a three-way merger with domestic competitors RHB Capital Bhd and Malaysia Building Society Bhd. in January, as economic conditions turned unfavorable.
It has since closed its Australia office and axed about 50 mostly equities-related positions from Hong Kong, Taiwan and South Korea to help trim investment banking costs by 30 per cent this year.
CIMB has also reduced its staff in Malaysia and Indonesia by 11 per cent after a combined 3,599 employees in the two countries took up voluntary separation offers, the company said in July.
Smaller rivals RHB Capital and Hong Leong Bank Bhd. have either eliminated jobs or announced plans to do so amid a slowdown in loan growth and a cooling economy.
Malaysia's capital markets are expected to remain "soft" during the next six months, resulting in fewer equity and debt deals for the bank to manage, Tengku Zafrul said. The deals pipeline may recover in the second half of next year, he added.
Tengku Zafrul said CIMB will stick to its plan of completing an expansion into the Southeast Asian nations where it has no operations by 2018. The remaining countries are the Philippines, Vietnam and Myanmar, he said.
CIMB's profit this year has been hurt by bad-debt provisions in Indonesia, where it derived about a third of net interest income in 2014. The firm is due to report third-quarter earnings before the end of the month.
Despite the forecast of a peak in provisions, Tengku Zafrul said he remained cautious about Indonesia. "Given what's happening in the economy of Indonesia, it won't get back to the normal levels that we are used to before, because recovery will be slower, and also the economy slowing down will have an impact on the general market," he said.
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China to expand Singapore RQFII quota to 100b yuan

China to expand Singapore RQFII quota to 100b yuan

[BEIJING] China will expand Singapore's Renminbi Qualified Foreign Institutional Investor (RQFII) quota to 100 billion yuan, China's central bank said in a statement posted on its website on Tuesday.
The plans were first announced in early November by Chinese President Xi Jinping during his visit to Singapore.
REUTERS

Paris attacks: Suspected mastermind cast as macabre jihadi

Paris attacks: Suspected mastermind cast as macabre jihadi

[LONDON] French investigators think they know who masterminded the deadliest terrorist assault in peacetime France: Abdelhamid Abaaoud, a 20-something Belgian who joined the ranks of the Islamic State a few years ago.
The son of a Moroccan shopkeeper, familiar to the intelligence community for his high-profile presence on social media, Abaaoud is being studied by investigators as the man who orchestrated the seven attacks in the Paris area on Friday that left at least 129 people dead and hundreds more wounded, the prosecutor's office said. Abaaoud, who Le Monde newspaper says is 28, is also linked by French officials to a failed assault on a Paris-bound high-speed train in August and a plot to attack a church in the city in April.
Belgian security officials began tracking him in March 2014 after he appeared in a video behind the wheel of a pickup truck dragging mutilated bodies to a mass grave in Syria. About six months later, photos surfaced on the Internet indicating he had lured his 13-year-old brother Younes to the war zone.
Like many jihadis, Abaaoud leads a ghost-like existence, with investigators scarcely able to piece together an outline of his whereabouts. His trail went cold in Greece after thwarted assaults against Belgian police in January he's accused of planning.
He's believed to have returned to Syria. Western allies sought to kill Abaaoud in an airstrike in the weeks before the Paris attack, but failed to find him, the Wall Street Journal reported, citing two unidentified Western security officials.
The Paris attacks were "decided, planned in Syria, organised in Belgium and carried out in France," President Francois Hollande told lawmakers on Monday in a rare joint session of the two houses of parliament in Versailles, on the outskirts of the French capital.
MOLENBEEK CONNECTION
There are few clues to Abaaoud's radicalisation. He grew up in Molenbeek, a working-class district of Brussels, where the now-banned Shariah4Belgium extremist group was particularly active in seeking recruits among the disenfranchised and alienated youth.
The Guardian reported that he had committed several armed robberies. His father said he was a good son whose actions have brought shame to the family.
"Why would he want to kill innocent Belgians? Our family owes everything to this country," Omar Abaaoud told La Derniere Heure newspaper this year. "Abdelhamid was not a difficult child and became a good businessman. Suddenly, he left for Syria. I wondered every day how he became radicalised to this point. I never got an answer."
In July, Abaaoud was sentenced in absentia to 20 years in prison by a Belgian court, along with 31 other jihadists, for the plot to attack the police officers.
EUROPE 'ZERO
' The video of Abaaoud dragging corpses comes from a cellphone found by Free Syrian Army soldiers that they gave to Etienne Huver, a French journalist who spent time last year on the Turkish-Syrian border. It turned out to be Abaaoud's.
The oldest photos on the phone are banal, showing images of family members, cartoons, Mr Huver said in a televised interview. In January 2014, his phone activity shows searches for a suitable car for a long road trip. A month later, Abaaoud appears in Syria wearing the traditional Afghan shalwar kameez tunic and pants that have become a uniform of sorts for jihadists, brandishing his Kalashnikov and other weapons.
What life do you prefer, he asks his friends in one video filmed around a camp fire, Europe or here? "Europe is nothing, zero," one replies.
In the pickup-truck video, Abaaoud arrives at the scene of a bloodbath and films corpses of men wearing Syrian army uniforms.
"They fought for democracy, for secularism, for money," he says. "They are fighting us because we want to establish Shariah law." Inside a nearby house are the bodies of dead civilians, a man who had been chopping onions and a child carrying a plate. He shows no remorse as he walks through the rooms.
'TERRORIST TOURIST'
"Before, we pulled jet skis, quads, motorcycles, luggage full of presents to go on holiday in Morocco," he says grinning in the pickup. "Now, we are pulling Kufar, Murtads," derogatory Arabic terms used to refer to non-believers.
On his Facebook page, he called himself a "terrorist tourist." Abaaoud's social media presence stopped soon after all the cell phone data was released.
He re-emerges in February 2015 when Islamic State's English-language Dabiq magazine published what it said was an interview with him. He's referred to as Abu Umar al Baljiki and discusses the planned assault on Belgian police in January and the subsequent shoot out in which two of his co-conspirators were killed.
Security sources were quoted by Belgian media at the time as wondering if the interview was fake, citing contradictions in Abaaoud's statements. For example, he said he had been in Belgium for the planned attack, but the country's Flemish- language VTM reported that his telephone was traced to Greece, where he may have been briefly detained by police.
In the Dabiq article, Abaaoud says Allah chose him "to terrorise the crusaders waging war against Muslims."
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Paris attacks put focus on Southeast Asia's terrorism fight

Paris attacks put focus on Southeast Asia's terrorism fight

[BANGKOK] As global leaders arrive in Asia for a series of summits, pressure is increasing on Southeast Asian nations to cooperate more to combat terrorism - including by sharing information on financing - after the deadly Islamic State attacks in Paris.
With Group of 20 leaders pledging in Turkey to coordinate more to cut off money flows to terrorist groups, heads of Southeast Asian nations meeting in the Philippines and then Malaysia face renewed scrutiny of the threat posed by local fighters returning from the battlefields of Syria and Iraq, alongside home-grown radicalism.
Joining the Asia-Pacific Economic Cooperation (Apec) summit in Manila is U.S. President Barack Obama, who declared Islamic State "the face of evil" after at least 129 people were killed in a series of attacks in the French capital. The ambushes were "planned in Syria, organised in Belgium, and carried out in France," French President Francois Hollande said, highlighting the need for cross-border approaches to countering militarism.
"Southeast Asian governments should reflect deeply on what happened in Paris and understand there's a new threat landscape emerging in Southeast Asia," said Rohan Gunaratna, head of the International Centre for Political Violence and Terrorism Research in Singapore.
"There needs to be a shift from rhetoric into action. There needs to an understanding that there should be a common framework for fighting terrorism in Asean," he said, referring to the Association of Southeast Asian Nations.
Apec leaders will condemn the Paris attacks, the Associated Press reported, citing a draft of a statement to be issued at their summit.
Attacks in Southeast Asia - home to about 15 per cent of the world's 1.57 billion Muslims, according to the Pew Research Center - have declined over the past decade as security forces arrested or killed militants. There is concern, however, that returning Islamic State militants could stage attacks or re- energize groups like Jemaah Islamiyah, responsible for the deadly 2002 nightclub bombings on the Indonesian resort island of Bali.
Southeast Asia also faces a number of long-running armed insurgencies featuring Muslim minorities seeking greater autonomy or independence, such as in the southern parts of Thailand and the Philippines.
Malaysian Defence Minister Hishammuddin Hussein warned on Monday that his country's leaders were being targeted by Islamic State, a message he said was important to reveal in order to instill a sense of urgency in combating such groups. The country's anti-terrorism chief Ayob Khan said arrested militants linked to a local Islamic State cell revealed plans to kidnap officials to exchange for jailed colleagues, the Star newspaper reported.
"I see certain areas in this region are not being managed well, particularly Southern Thailand and southern Philippines, not to mention the free movement of people and smuggling of weapons," Mr Hishammuddin was quoted as saying in the Star.
"These are all issues, which need to be taken seriously based on the recent developments in Europe and the Middle East."
President Joko Widodo of Indonesia - home to more Muslims than any other nation - on Saturday urged the international community to "wage war against terrorism."
The global terrorism threat was front and center at the G-20 meeting held in the days after the attacks across Paris. Leaders called for better coordination and exchange of information to cut off terrorist funding and a more comprehensive approach on addressing the conditions conducive to terrorism. They will look at tightening borders to detect travel by extremists and bolstering aviation safety.
"We are concerned over the acute and growing flow of foreign terrorist fighters and the threat it poses for all States, including countries of origin, transit and destination," the leaders said.
"The continued and recent terrorist attacks all across the world have shown once again the need for increased international cooperation and solidarity in the fight against terrorism."
Authorities in Manila stepped up security measures after the Paris attacks. The Philippines is home to a decades-long Muslim insurgency in its southern province of Mindanao. More police officers and soldiers were deployed on the streets and barriers put up, Philippine National Police spokesman Chief Superintendent Wilben Mayor said Monday.
Despite Apec's traditional focus on economic issues, ministers from member nations raised the topic of terrorism, APEC Secretariat executive director Alan Bollard said in an interview in Manila on Monday.
"We've just had every minister in the room express their sadness and disappointment as a result of those Paris attacks," he said. "We'll see whether they will come out with something in the statement. But quite apart from that, our focus continues to be on economics. We do look at counter terrorist financing - that's really the closest we will get to those issues."
Corporate chiefs attending the Manila gathering also talked about the killings. Speaking on the sidelines of the meeting, Deutsche Post AG Chief Executive Officer Frank Appel said security was "very high on our agenda" although the company has seen no particular effect on business from the Paris attacks.
"I was in Paris on Saturday and it's obviously a tragedy," said Olivier Charmeil, executive vice president of vaccines at Sanofi.
"What I can sense is a higher sense of solidarity and of course I think this is very warmly welcomed in those difficult circumstances."
Ian Bremmer, president of Eurasia Group, urged Southeast Asian leaders to also focus on other challenges to the region, saying radicalization and the threat from terrorism is "not an enormous problem in Southeast Asia."
"The danger in spending too much time focusing on security and terrorism is that it allows you to avoid the longer term structural changes that are really desperately important," Mr Bremmer said.
"None of that stuff happens when you start to get distracted with security."
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