source :http://www.guardian.co.uk/business/2010/oct/13/lloyds-banking-group-cuts-jobs
woensdag 13 oktober 2010
And another one bites the dust...
Bank accounts: people don't want to press the switch
An important consumer organization, Consumer Focus, receives a high amount of complaints from customers of banks, but in the past 2 years only 7% of them decide to move to another bank showing their displeasure. Compared to other instances costumers of banks don’t change fast their account, switching happens much more between energy suppliers, telecom providers and home insurance. So there is no pressure on banks to improve their service in relation to other banks. There should come some new measures to change this situation, including: clear and fair charges, comparable tables on current accounts and an obligation of banks to pay for goodwill.
Kristof Buffel
Increasing salaries
In the face of the upcoming national wage negotiations, the leader of the socialist union has declared that he wants to narrow this gap in the future which will bring extra tension to these negotiations. Pieter Timmermans, chairman of the VBO takes the edge of these numbers by stating that the report is incomplete, according to Mr. Timmermans the calculations are made based upon salary before taxes and since the higher incomes pay more taxes, and therefor are inaccurate. The report also didn't mention the salary evolutions in SME's which represent the majority of the Belgian industry.
Dries De Craemer
http://www.standaard.be/artikel/detail.aspx?artikelid=PL30OCJC
dinsdag 12 oktober 2010
Banking & Finance
The Atlantic Wind Connection
Nowadays investing in renewable energy is very popular, for example even Google announced a large scale investment to harness offshore wind power. The project will be named the Atlantic Wind Connection and will consist of a network of underwater cables that connects the offshore wind turbines with the east coast cities.By doing this, Google will not only contribute to the environment, it will also create thousands of jobs, upgrade consumer supply to green energy sources and it will renew a part of the Mid-Atlantic region’s power grid.Thanks to companies like Google people will become more aware of the fact that drastic changes have to be made.
Jonas De Mets
Credit card fraud targeted by new security mesures
More and more people become victim of creditcard fraud, but fortunately
new security mesures are being taken. People are massively singning up to
security tools like for example the Mastercard Securecode. Even banks are
taking initiatives by introducing fraud detecting tools. This cautious attitude
repays itself by a fall of fraud during the past 6 months.
Source: http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/8044602/Credit-card-fraud-targeted-by-new-security-measures.html
Alichan Bogaterov
new security mesures are being taken. People are massively singning up to
security tools like for example the Mastercard Securecode. Even banks are
taking initiatives by introducing fraud detecting tools. This cautious attitude
repays itself by a fall of fraud during the past 6 months.
Source: http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/8044602/Credit-card-fraud-targeted-by-new-security-measures.html
Alichan Bogaterov
Foreclosed properties
If you want to buy a house at a very low price, bank foreclosures are the perfect opportunity because the banks are in a hurry to realize the profit ant that's why they accept an amount of money that is lower than the common price. Other advantages related with owning a foreclosed home are that you can inspect the house so that you can be sure that you want to invest your money in it and that the banks are ready to negotiate the conditions of payment. Before you buy the property, it is necessary to do some research like inspecting the house and survey the location and the neighbourhood. It's also important to notice after locating a property that you decide if you are going to use it for personal things or as an investment.
Arne De Smet
source: http://www.themoneytimes.com/featured/20101002/foreclosures-buying-home-less-id-10130208.html
Pension fees won’t cover retirement
In Belgium it is no longer affordable for people in their late 50’s to stop working and start living of their pension fees without having saved a lot of money first. If you haven’t been saving at least €100 a month for the last 9 years before your retirement, you won’t even last 3 years in a nursing home in Flanders. The cost for a nursing home has been estimated at €1,326.90 a month, which is not evidently affordable for anyone wanting to retire. Most people who retire can’t afford such nursing homes and are thereby very dependent of their children or grandchildren to take care of them, those who don’t have their relatives to count on, do have a problem.
Sarah Carron
source: http://www.standaard.be/artikel/detail.aspx?artikelid=BU30JCJK&_section=61269305&utm_source=standaard&utm_medium=newsletter&utm_campaign=mijngeld
Sarah Carron
source: http://www.standaard.be/artikel/detail.aspx?artikelid=BU30JCJK&_section=61269305&utm_source=standaard&utm_medium=newsletter&utm_campaign=mijngeld
Saving the English preps!
Nowadays it’s very expensive to study at the university because the tuition costs surpass reasonable limits for English students and thus their parents have to carefully plan ahead their finances when they want their children to study at the university. Creating a savings account or making a long term investment should be considered, as promptly as leaving the bedroom on your honeymoon!
A lot of foreign universities teach their courses in English and most of them have lower admission fees and much less overall costs for students than the British universities have. Considering this, studying abroad, might be a way for British parents to lower the costs drastically and fulfill their children's university dreams.
US bankers set for record pay and bonuses for second year
This year, the banking sector is facing unprecedented proportions of compensation and pay packages, even with the economy not fully recovered. Those expansions in compensation levels are not always even consistent with those of revenues, and are even achievable with a declining profit. Sometimes banks will even let go employees so they can keep their bonuses high in order to maintain their top bankers. According to Charles Elson, the solution is to abandon the short-term thinking of the “revenue generation”, and to switch on to long-term thinking, which focuses on the interests of shareholders.
Charlotte De Baere
(guardian)
Goldman Dumps Stock of Chinese Bank
In the past two years, Goldman has sold billions of shares of the Industrial and Commercial Bank of China. This causes bad publicity for China because its stocks will decline in value. China has a state-led economy and therefore the Chinese government is in control of all its expenses. In this way the fundamentals of the Chinese banks will never improve because the government doesn’t take the right measures.
Celina Buyle
Apple is losing marketshare
Android, the Google mobile operating system, is gaining ground on Apple’s iPhone smartphone market. This is evidenced by market share tables from iSuppli.
According to iSuppli Apple got a marketshare of 13.9% in the second quarter, against 15.7% in the first quarter. The smartphone leader Nokia is still strengthening his position from 38.5% to 39.7% marketshare, while RIM , the OS running on a blackberry, is losing ground - just like Apple - with a decrease from 18.8 to 18.5%.
Arnaud Delattre
Peter Diamond's Nobel prize in economics is all about hard work
http://www.guardian.co.uk/commentisfree/cifamerica/2010/oct/11/peter-diamond-nobel-prize-economics-2010-dale-mortensen-christopher-pissarides
How is it possible that, while there are so many job openings, the number of unemployed people is so high? Peter Diamond and his colleagues have created a possible theory that explains this phenomenon. The three professors have been rewarded the Nobel Prize for economics for their contribute. Therefore they received € 1,1 million they'll have to share.
De Cocker Jasmin
How is it possible that, while there are so many job openings, the number of unemployed people is so high? Peter Diamond and his colleagues have created a possible theory that explains this phenomenon. The three professors have been rewarded the Nobel Prize for economics for their contribute. Therefore they received € 1,1 million they'll have to share.
De Cocker Jasmin
New CDO-claim against Goldman Sachs
In March 2006 the American investment bank Goldman Sachs (GS) sold CDO’s to the German Landesbank Baden-Wuerttemberg (LBBW). Even though GS knew the game on subprime mortgages was played, they promised that the investment was ‘safe, secure and almost risk free’. So GS acted fraudulent at the moment that the transactions were accomplished. And that is why LBBW is laying a claim for damages to GS.
Pieter Batsleer
Have you ever switched bank before?
Only seven per cent of the people switched current account in the past two years although most of the people pay too much costs. According to Consumer Fonds customers are afraid of missing direct debit payments, administrative errors or costs when things go wrong while switching. However a lot of banks have let their customers down during the recession, a lot of their customers don’t even think about switching current accounts. This will only change if banks make their costs transparent and switching easy so customers can compare tariffs and choose which account fits the best for them.
Annelore Demaegdt
Annelore Demaegdt
Babies becoming millionaires thanks to pension saving.
The number of parents paying into a pension plan for their newborn baby is increasing sharply: they all want their child to have a good financial situation in retirement. This ‘self-invested personal pension’ (Sipp) seems to offer much more advantages for both the parents and the infant than the old-fashioned child trust funds do. The major advantage is the tax relief parents receive by contributing £88 a month into their child’s Sipp. Another great benefit is the security of the investment: children aren’t allowed to use -or to waste- the money until they have reached the age of 65. (Guardian)
Famke De Ro
British students will need more support then ever.
The British government has decided to scratch the limit of tuition fees that universities are alowed to claim from students. As a result of this proposal students would have to pay at least the double amount ... around 7000£! By scratching the limit , the universities are dropped in a free-market where they don't only have to compete about students but now also with tuition fees. Universities could go bankrupt, loans to students will be more popular then ever,... not everyone in the UK thinks that this the best idea ever.
Mathieu De Meulemeester
source: http://www.bbc.co.uk/news/education-11525031
Why the banks should agree to a ceasefire on bonuses
According to Richard Lambert, the director-general of the CBI, banks have to declare a ‘ceasefire’. They should draw up some global guidelines on bonuses. Most banks won’t be in favor of this proposition, because they don’t trust their rivals. But, even thou it won’t be easy, this is a good start to regain the public’s trust.
Maartje Alberts
Registered is not equal to safe
Although many foreign exchange firms in the UK are registered with the Financial Services Authority, it does not mean that your money is safe.
The bankruptcy of Crown Currency Exchange proves this fact. Many people who already had given lots of money to the company in order to get their foreign money a couple of days later, will not see their money back. It appears that the exchange company used their customers' money for other business activities.
Source: Guardian
The bankruptcy of Crown Currency Exchange proves this fact. Many people who already had given lots of money to the company in order to get their foreign money a couple of days later, will not see their money back. It appears that the exchange company used their customers' money for other business activities.
Source: Guardian
Joost Arnoudt
Eco English 5: Gold to go
More international bank services in India
Swiss bank credit Suisse has, recently after other banks, received permission to provide bank services in
Thomas Derave
Squeezed middle: families £4,000 a year worse off
Families with an income of £50.000 a year will have about £4.000 less by 2013. The families who are most affected are those with 2 children and just one person who earns the living. The main causes of that change are the loss of child benefit , the rise of the vat (valued added tax) and of course the general rise of the cost of living. These new measures already received a lot of criticism because hardworking people disadvantaged by it.
Ann-Sophie Boone(Telegraph)
The war continues
Many countries have started ‘competitive devaluation’ to recover from the crisis, introducing a global race to the currency devaluation bottom that could greatly harm the global recovery.
 |
| US Dollar vs Yuan |
Especially countries with export-led economies acknowledge the benefits of weakening the value of their currencies compared to other currencies.
Although the US disapproves this action, the problem is mainly caused by the US that printed lots of dollars creating hot money that can be bought by those nations.
IMF fears that currency intervention can only lead to protectionism, putting an end to all international economic transactions.
Laurent Declercq
Source: http://www.bbc.co.uk/news/business-11484532
The evolution of the goldprice
The price of gold has risen the last decade; since 1999 we saw a rise of 430%.
Investors have always seen gold as a safe investment (especially in uncertain economic times, like the financial crisis) and because of that the price of gold rocketed. Last week the value of 1 ounce gold reached 1,300 dollar, which is the highest point we saw in history. Many people say this evolution will continue until one ounce gold touches a value $1500 by the end of the year: but will this evolution last for ever?
Sofie Danneels
http://www.guardian.co.uk/business/2010/oct/10/global-stampede-for-gold
7 Things Your Bank Won't Tell You
Laura Christiaens
Discussion about higher tuition fees
The English coalition government is discussing about students tuition fees. They have plans to make higher earning graduates pay more for their degrees. For some of them a variable interest rate seems the best option, other members of the coalition think that rising tuition fees is a better solution. However, the discussion is still going on, because a lot of people have different opinions about this delicate subject.http://www.guardian.co.uk/education/2010/oct/11/tuition-fees-interest-rates-increase
What does a young person save in ‘The Mother Hotel’?
According to a study of Eurostat, one-third of the boys and one-fifth of the girls in Europe between 25 and 34 years old, still live with their parents. These altricial people increase in periods of crisis, when they are unemployed or when they study for a longer time. If a person stays at home, most of them don’t have to pay gas, electricity, assurance etc; they can safe their money for going on a holiday or buying a car. Some of these people prefer to live in a house with their family rather than to live alone in a small apartment near a busy street; therefore ‘The Mother Hotel’ gives you some financial and social profits!
Gold to go
The German company Ex Oriente Lux created the ultimate hole-in-the-wall, a machine that dispenses gold. Doubts about the strength of the global economy are causing the rising of the gold price and therefore gold is a safe haven. The dispenser exchanges your money for gold, Krugerrands, Maple Leafs,… at the current rate that changes every ten minutes. The first Gold to go was installed in Abu Dhabi five months ago but in the meantime there are more than twenty gold dispensers across the world.
De Clercq Liesbeth
maandag 11 oktober 2010
Fear for new recession is rising
Chief Finance Officers are losing confidence in sustainable economic growth, CDO (an advise firm) even warns that the economy could shrink in the second quarter of next year. Chief Finance Officers all agree that this is not the time to take risks, despite of the improving conditions to loan. This lack of growth could bring the new government in trouble because it has based their tax plan on a growth percentage of 1.2. The pressure on the bank of England is growing because of this lack of confidence, they will have to inject more money into the fragile economy to boost it.
- Tijl Carpels
Students, pack your bags!
Not only do future university students have to be able to point out extremely high academic results, they (and especially their parents) are facing leaping tuition fees, which makes studying outside the United Kingdom more tempting than ever. British students are missing out on university places because the majority of the campuses prefer accepting non-EU candidates as their admission and study charges are higher than those of students living in Europe. However, most top European universities offer at least the same opportunities and degrees and on top of that, they do not charge students a dime. Leaving the continent is an option too: the general cost of living abroad is very appealing to globe-trotters who can deal with cultural shocks, communication problems and occasional homesickness.
CBI chief urges bank bonus ‘ceasefire’
Banks have to agree on bonuses with each other, otherwise this will cause a political storm.
The banks have to rebuild their trust by fair dealing. If they don’t, then it will be hard to stop the government from interfering. This would have a negative effect on the productivity of the banks.
Arben Dervisholii
Zero interest rate in Japan
The Japanese Central Bank lowered the interest rate to almost 0 percent last Tuesday. The reason of this is that they want to make it cheaper for the Japanese to borrow, consume and invest. The interest rate will be cut down till there is price stabilization in the economy. Another important measure of the Japanese Central Bank to counteract deflation is the foundation of a fund they can use to buy up the debts of the government.
Dries Baeteman
Dexia’s shares rise strongly
On Investor’s Day, Dexia will anounce their future plans for the upcoming five years. Speculation has increased the bank’s stock ratings sharply. Some banking experts expect that retail activities will become more ubiquitous. Others believe that Crédit Local ( the french division of Dexia ) will merge with Banque Postale. Some economists even hope that the bank will decrease their large amount of obligations.
Matthias Bogaert
Germany Opposes Extending Greek Repayment Schedule
The proposal from the IMF to extend the support to Greece to deal with his financial problems was refused by Germany. This could only happen if the European countries decide to do so, because it where the European countries who provided the biggest part of the packages. According to the Germans, Greece is doing absolutely what it needs to do to handle his problems and will be able to complete the requirements of the rescue packaging in the initial terms of time. The measures Greece has been taken consist of cutting wages and pensions and raising taxes.
Anouck De Schrijver
zondag 10 oktober 2010
Turkey and China to Shun the Dollar
Turkey and China have agreed to only use their own currency’s when trading, instead of the US Dollar. They also want to triple the trade between them. Lately China is trying to raise the profile of their Yuan so it would play a bigger role in the world economy.
Although Turkey has a huge trade deficit with China, because the Chinese keep the Yuan low, they did not complain about it, in contrast to the EU and US. Probably because of their good bilateral relations.
Although Turkey has a huge trade deficit with China, because the Chinese keep the Yuan low, they did not complain about it, in contrast to the EU and US. Probably because of their good bilateral relations.
Financial aid for Irish banks higher than expected
Lucas Buyse
European Commission caused about strong Euro.
The Euro has risen again in value. As opposed to the Euro, the Yuan and the United States Dollar are undervalued. This combination can have a negative influence on the economic recovery in Europe. For example, the strong Euro makes the European export more expensive, that means that is less profitable to buy products in Europe. There is an European political pressure on China for a more flexible course of the Yuan, but the Chinese pre-minister doesn’t degree with us on that.
Lobke Callens
A flaw in the system?
Over the past decade student loans have never ceased to be controversial, but the dust clearly hasn’t settled yet as the Student Loans Company is lagging behind on the registration of student loan repayments. Scores of ex-students fear that due to this delay they will have to overpay on their loans. The Student Loans Company acknowledges the problem and in an attempt to assuage the growing anxiety amongst students, they advise students to keep track of the repayments they have already made in order to avoid paying too much. If students stick to this advice they needn’t worry about overpayments, because the Student Loan Company will reimburse the surplus money at an interest rate equal to that which the student paid on his loan.Jeroen Burgelman
The IMF as currency referee
During the meeting between the IMF and the World Bank, ministers of finance from several countries asked the IMF to set up rules to prevent a so-called currency war. These rules are necessary because some countries, for example China, stimulate their own economic growth in a way that damages foreign economies. The IMF should be some sort of referee that tells the countries their do’s-and-don’ts. So there would be one big institution that makes sure that the governments don’t only protect their inland economy, but also help the world economy.
Bert Aelter
The IMF as currency police?
Although no deal is struck between the financial leaders concerning currencies, the idea to expand the role of the International Monetary Fund (IMF) as a "currency police" has been raised. The United States came with the idea in exchange for the reforming of the IMF, where emerging powers like China and Brazil will gain a greater voice. According to the US, the IMF should get more information about the monetary policies of the biggest economies and more power to adjust these policies, pointing to China’s Yuan. In which ways the IMF should expand its role remains unclear, even though Strauss-Khan, IMF’s managing director, suggested the IMF could follow the 5 largest economies (the United States, China, Japan, the euro zone and the UK) and measure the influence of their monetary policies.Pieter-Jan Deprest
http://www.reuters.com/article/idUSTRE6952N820101010
People distrust the government
More than 22 000 citizens from countries all over the world agree that the government doesn’t spend the money they receive by means of taxes in a good way.In fact, the greater part of the people participating the survey think the government should try harder to reduce or at least stabilise food prices. Instead of increasing taxes, the government will have to prove their policy is effective and responds to the needs of the citizens. This is the only way the government will regain the confidence of their citizens.
Justine Bleuze
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