No women, no bonus: British financial firms urged to come clean on lack of diversity

Workers walk past clocks showing a time of 12 minutes past 12 noon, on this century's last sequential date, in a plaza in the Canary Wharf business district of London on Dec 12, 2012. 

PHOTO: REUTERS

NOV 4, 20158:31 AM

[LONDON] Bonuses paid to executives at financial services companies in Britain should depend on the number of women employed in senior roles at the company, a government report into women in finance will say on Wednesday.

Financial services firms should also report their gender diversity figures publicly to tackle the lack of women at the top of this industry, the review, led by Virgin Money's chief executive, Jayne-Anne Gadhia, will recommend.

The review is part of a government drive to increase economic productivity in Britain, which it says should include increasing female workforce representation.

According to an OECD estimate, labour market gender equality could increase British GDP by 10 per cent by 2030.

Ghadia's review recommends that remuneration packages be linked to a firm's gender balance, that companies appoint an executive responsible for gender, diversity and inclusion, and that companies report gender statistics publicly. "My report proposes addressing the issue in a way that the City will recognise. Make it public, measure it and report on it. What gets published gets done," Ms Gadhia said. "It should be a wake-up call to everyone in financial services that fewer women progress to senior levels than in any other industry in the UK," she said.

Britain's financial services industry contributed 127 billion pounds (S$273.4 billion) in gross value added to the British economy in 2014, government statistics show.

But women are sorely underrepresented in the sector.

Globally, only 13 per cent of executive committee members and 4 per cent of CEOs at 150 of the world's major financial institutions are women, a 2014 report by consultancy Oliver Wyman found.

In Britain, some progress has been made across industries as a whole over the past five years.

Women now account for 26 per cent of board positions in the FTSE 100, up from 12.5 per cent in 2010, another government-sponsored report, the Davies Review, found in October.

But more needs to be done and the Davies Review now wants women to hold a third of positions in FTSE350 boardrooms by 2020. "I know that there are a lot of brilliant, talented women out there whose skills would be an enormous asset to any firm," Economic Secretary to the Treasury Harriett Baldwin said ahead of a government summit on Wednesday when the report will be presented.

Gadhia's preliminary proposals will be available for public comment and a final report will be published before Britain's next annual budget in 2016.

REUTERS

    
 

Taiwan, China leaders to hold historic meeting in Singapore on Saturday

The presidents of Taiwan and China will meet in Singapore on Saturday to discuss cross-strait issues, Taiwan's presidential office said, in the first such meeting of leaders from the two sides since the Chinese civil war ended in 1949. 

PHOTO: REUTERS

NOV 4, 20157:29 AM

[TAIPEI] The presidents of Taiwan and China will meet in Singapore on Saturday to discuss cross-strait issues, Taiwan's presidential office said, in the first such meeting of leaders from the two sides since the Chinese civil war ended in 1949.

Taiwan President Ma Ying-jeou will fly to Singapore to meet with Chinese President Xi Jinping, the presidential office said in a statement.

The meeting comes at a politically sensitive time in Taiwan, with elections for a new president and legislature being held on Jan 16.

China's Taiwan Affairs Office said in a statement: "The mainland's attitude on a meeting between leaders from both sides of the Taiwan Strait is positive and consistent. If there is news on this, we will issue it in a timely manner." The purpose of Mr Ma's trip was to "consolidate cross-strait peace and maintain the status quo", his office said.

Mr Ma would not sign any agreements, nor issue any joint statements with China during the trip, it added.

Taiwan's cabinet would meet with leaders of parliament and the island's political parties on Wednesday to discuss the trip.

Taiwan's Mainland Affairs Council, the island's top China policymaking body, will hold a press conference on Wednesday, while Mr Ma will hold a news briefing on Thursday, the presidential office said.

Mr Ma's pro-China Nationalist Party, known as the Kuomintang (KMT), is trailing in opinion polls behind the main opposition Democratic Progressive Party, which traditionally favours independence and is loathed by the Chinese Communist Party.

Chiang Kai-shek's Nationalists fled to Taiwan following their defeat by Mao Zedong's Communists at the end of the Chinese civil war.

Since then Taiwan has been self-ruled, but China deems the island a breakaway province to be taken back, by force if necessary, particularly if it makes moves toward independence.

Previous Chinese attempts to influence Taiwan's elections have backfired.

In 1996, then-Chinese President Jiang Zemin ordered live fire missile tests and war games in the seas around Taiwan to try and intimidate voters not to back Lee Teng-hui, who China believed was moving the island closer to formal independence.

The crisis brought the two sides to the verge of conflict and prompted the United States to sail a carrier task force through the Taiwan Strait in a warning to Beijing.

Lee won the election by a landslide.

In March this year, Mr Ma flew to Singapore to pay his respects after the death of the city-state's first prime minister, Lee Kuan Yew, a diplomatically sensitive visit given China's stance that Taiwan is a renegade province.

China, which maintains a good relationship with Singapore, holds that there is only "One China" and Taiwan is part of it.

However, Singapore also maintains a close, informal relationship with Taiwan and the two signed a free trade pact in 2013.

REUTERS

    
 

TTIP: Might is Right (Video)

TTIP: Might is Right

2015 , 

The Transatlantic Trade and Investment Partnership, or TTIP, is a free trade agreement currently under negotiations between Europe and the United States. As shown in the insightful new documentary TTIP: Might is Right, this agreement has stirred a great deal of controversy and protest among the masses, and for good reason.

Most citizens regard free trade as an essential component of a healthy economy; therefore, they generally believe that any new agreement between countries that falls under the banner of "free trade" must be in their best interests. Historically, however, these agreements have done more than just lift tariffs and allow for the smooth transport of imports and exports. Investment clauses written into these agreements, particularly the Investor State Dispute Settlement (ISDS) clause, allows corporations to sue a country when they feel their interests are slighted for any reason. In essence, these trade agreements grant foreign investors the power to call all the shots, regardless of the consequences to the country's economy, citizen rights and environmental protections.

Case in point: Canada. In 1992, the country signed onto the North America Free Trade Agreement (NAFTA) with the United States, and the unexpected repercussions of that agreement are still being felt by residents after well over two decades. As evidenced by one such consequence portrayed in the film, the ISDS clause has permitted the practice of unregulated fracking right in the backyards of unsuspecting citizens. Their protests are largely met by deaf ears, because the energy companies who host the fracking enterprises have the authority to sue the country if they feel their business model is under attack. Canada has reason to feel squeamish about interfering with corporate interests or enforcing regulations upon them; since the passing of NAFTA, they have become one of the five most frequently sued countries in the world.

TTIP negotiations are held in secret, and little is revealed to the public regarding their content.TTIP: Might is Right calls for greater transparency in the crafting of this agreement, and warns of a potential future where governments only work for the bottom line of foreign investors, and not for the people they represent. Democracy itself could crumble under the weight of litigiousness.

Singapore, China to sign high-level agreements during Xi's visit

By

Soon Weilunsoonwl@sph.com.sg@SoonWeilunBT

Singapore and China are expected to announce details of high-level agreements between the two governments, including the third government-to-government project later this week, when Chinese President Xi Jinping visits the Republic on Nov 6 and 7. 

PHOTO: REUTERS

NOV 3, 201512:29 PM

SINGAPORE and China are expected to announce details of high-level agreements between the two governments, including the third government-to-government project later this week, when Chinese President Xi Jinping visits the Republic on Nov 6 and 7.

The two countries are also expected to release details on the upgraded version of the bilateral free trade agreement.

On the cards are also education, customs and finance industry agreements that will be inked between the two nations during Mr Xi's visit.

Economic ties aside, Mr Xi will share his views on bilateral relations, China's relations with Asean and on geopolitical issues in a speech.

Chinese ambassador to Singapore Chen Xiaodong shared these details in a press briefing on Tuesday morning.

Mr Xi's whirlwind tour takes place for less than a day, but is packed with significance and importance for both countries.

Highlighting that Mr Xi's visit happens at a time when both countries are commemorating the 25th year of establishing diplomatic ties, Mr Chen said that leaders from both nations will look at how to "reposition" such ties between Singapore and China.

One of the key highlights will be the announcing of where the third government-to-government collaboration will be located, after Suzhou Industrial Park in 1994 and the Tianjin Eco-City in 2008.

The new project will be established in western China, and will serve as a nodal point in Mr Xi's plans to develop China's western region through the "One Belt, One Road" initiative.

This will be Mr Xi's first state visit to Singapore since becoming president in 2012. It also will be the first visit by a head of state that the newly-minted Singapore government will receive.

Mr Xi, accompanied by his wife Peng Liyuan, will arrive in Singapore on Friday evening and will attend a state banquet held in his honour later that night.

He will then officiate the opening of the China Cultural Centre at Queen Street with Emeritus Senior Minister Goh Chok Tong on Saturday morning, before adjourning to make a public speech on geopolitical issues.

Mr Xi and Ms Peng will then have an orchid named after them in a ceremony at the Botanic Gardens. They will then attend a private lunch hosted by Prime Minister Lee Hsien Loong and his wife Ho Ching.

    
 

Singapore's PMI contracts again, at 48.9 in Oct

By

Kelly Taykellytay@sph.com.sg@KellyTayBT

Singapore's Purchasing Managers' Index (PMI) remained in contraction mode in October, although it rose 0.3 point to 48.9. 

PHOTO: SPH

NOV 3, 20159:04 PM

SINGAPORE'S Purchasing Managers' Index (PMI) remained in contraction mode in October, although it rose 0.3 point to 48.9.

This was exactly in line with what private-sector economists polled by Bloomberg had been expecting.

A reading above 50 denotes growth, while one under 50 points to a contraction in the manufacturing sector.

Said the Singapore Institute of Purchasing & Materials Management (SIPMM), which compiles the index monthly from a survey of more than 150 manufacturing firms' purchasing managers: "The contraction in the overall PMI was attributed to further contraction in new orders, new export orders, as well as production output.

"Inventory recorded its first-time contraction after having expanded over five consecutive months."

The electronics PMI also stayed below the 50-point mark in October, with a marginal 0.1 point rise to 48.6. This was lower than the market's forecast of 49.0.

The contractionary reading was due to declines in new orders from domestic and overseas markets, as well as production output and inventory.

    
 

US factory orders fall for second straight month

NOV 4, 201512:10 AM

[WASHINGTON] New orders for US factory goods fell for a second straight month in September as the manufacturing sector continues to struggle under the weight of a strong dollar and deep spending cuts by energy companies.

The Commerce Department said on Tuesday new orders for manufactured goods declined 1.0 per cent after a downwardly revised 2.1 per cent drop in August.

Factory activity, which accounts for about 12 per cent of the economy, is also being constrained by efforts by businesses to reduce an inventory overhang and tepid global demand. But the worst could be over for the sector after a report on Monday showed new orders rose in October for the first time since July.

Economists polled by Reuters had forecast factory orders falling 0.9 per cent in September after a previously reported 1.7 per cent decline in August.

The dollar has gained 16.8 per cent against the currencies of the United States' main trading partners since June 2014, which has undercut export growth and weighed on the profits of multinationals.

Orders for transportation equipment fell 3.1 per cent in September, largely reflecting a drop in aircraft orders. Motor vehicle production remains a bright spot in manufacturing, with orders for automobiles and parts rising 1.5 per cent in September.

The Commerce Department also said orders for non-defence capital goods excluding aircraft - seen as a measure of business confidence and spending plans - slipped 0.1 per cent instead of the 0.3 per cent drop reported last month. This also supports the view that the worst of the manufacturing slump might be over.

Shipments of these so-called core capital goods, which are used to calculate business equipment spending in the gross domestic product report, increased 0.5 per cent in September as reported last month.

Inventories of factory goods fell 0.4 per cent after a similar drop in August, also an encouraging sign for the sector. That left the inventories-to-shipments ratio unchanged at a still lofty 1.35.

Unfilled orders at factories fell for a second straight month.

REUTERS

    
 

Amazon opens first physical bookstore

NOV 3, 201511:57 PM

[SAN FRANCISCO] US online giant Amazon, which has led the bookselling industry's shift to the Internet, opens its first physical bookstore on Tuesday.

"These aren't metaphorical doors: these real, wooden doors are the entrance to our new store in Seattle's University Village," the company said on a web page for the shop, located in Amazon's hometown in the northwest state of Washington.

The store, called Amazon Books, "is a physical extension of Amazon.com" which "integrates the benefits of offline and online book shopping," the company said.

"The books in our store are selected based on Amazon.com customer ratings, pre-orders, sales, popularity on Goodreads and our curators' assessments. These are fantastic books! Most have been rated four stars or above, and many are award-winners." Amazon said prices will be identical online and at the bookstore, and it encouraged customers to use its mobile application to read reviews and get more information about items.

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"Amazon Books is a store without walls - there are thousands of books available in store and millions more available at Amazon.com," the statement said.

"Walk out of the store with a book; lighten your load and buy it online." The stores will also be selling Amazon-branded devices such as the Kindle, Echo, Fire TV, and Fire Tablet.

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Goldman Sachs cut exposure to oil and gas companies last quarter

NOV 3, 201511:17 PM

[NEW YORK] Goldman Sachs Group Inc went short oil and gas companies last quarter, bringing its total exposure to the industry below US$12 billion for the first time since it started breaking out that risk to investors at the end of last year.

The firm's market exposure to oil and gas companies was negative US$243 million at the end of September, compared with US$482 million three months earlier and US$805 million at the end of 2014, the New York-based company said a regulatory filing Tuesday. The bank had US$12.2 billion of credit exposure to the industry, with US$10.3 billion coming from lending and US$1.9 billion from derivatives and other receivables.

Oil tumbled 41 per cent in the past year, dragging stock prices of companies in that industry along with it. Producers reported more than US$19 billion in oil and gas writedowns last month as they acknowledged the loss in value of drilling prospects.

Of Goldman Sachs's lending risk, US$4.4 billion was to non-investment-grade companies, including US$1.6 billion of funded loans, according to the filing. Chief Financial Officer Harvey Schwartz said last month that the firm had less than US$200 million in exposure to commodity-trading firms, which view the bank more as a rival.