UK. Bank stress tests: Co-op fails as Lloyds and RBS scrape through

Three banks – the Co-operative Bank, Lloyds Banking Group and Royal Bank of Scotland – were found to be lacking financial strength by the Bank of England after being subjected to tests designed to measure their ability to withstand economic shocks.

In order to test the resilience of the financial sector, the central bank created a hypothetical scenario involving a deep recession, an unprecedented collapse in house prices, soaring unemployment and a sharp rise in interest rates.

Threadneedle Street stressed it was not handing out a pass or fail on the eight lenders exposed to the extensive exercise, nor did it intend to order any system-wide changes to the banking industry.

Only the Co-op Bank – whose capital would be “exhausted” under the most severe stress test – was ordered to submit a revised plan to the Bank. It was the only one to fall below the 4.5% minimum core tier one capital ratio – a key measure of financial strength – set by the central bank.

Owned by the Co-operative Group until last year, the Co-op bank had already warned it might fail the test.

The results published on Tuesday showed its capital would fall into negative terrority, knocked by losses on commercial property loans under the hypothetical scenario.

Bailed-out RBS, 81% owned by the taxpayer, would have been required to submit new plans had it not already begun to raise its capital buffers at the end of 2013, which was the starting point for the tests. .

Lloyds, which is 24% owned by the taxpayer, was not required to submit new plans although it may now face questions about its ability to resume paying dividends to shareholders for the first time since the 2008 banking crisis.

The Bank of England governor, Mark Carney, said policy makers had been reassured about the banking sector after the first ever industry-wide stress tests, which are to become an annual event.

“This was a demanding test. The results show that the core of the banking system is significantly more resilient, that it has the strength to continue to serve the real economy even in a severe stress, and that the growing confidence in the system is merited,” Carney said.

Publishing its half-yearly outlook on risks to the financial system, the Bank of England also said the global economic outlook had weakened from six months ago. It added: “The recent sharp fall in the oil price should support global and UK growth but it also entails some risk to financial stability.”

The bank also said its financial policy committee had been worried in June about the risk of the housing market and debt levels in UK households, which remain high relative to income.

HSBC, Barclays, Santander UK, Standard Chartered and the Nationwide building society were the five other institutions tested and were not found to have any capital inadequacies. They were not required to submit new plans to the Bank of England’s regulation arm, the Prudential Regulation Authority.

Over the three-year test period, which ran from the end of 2013 to the end of 2016, the banks made £13bn of losses before making profits in the third year. Without the series of economic stresses, the lenders were projected to make £100bn of profits over the three years.

Impairment charges would rise by £70bn under the stress tests. Capital ratios are also severely affected, with systemwide ratios falling from 10% to 7.3%.

The Bank of England also took into account actions that banks could have taken during the three-year period, which included cutting staff costs and dividends, and changes in lending patterns. But banks were not allowed to reduce their lending to the economy.

The Bank has stepped back from including more banks in the tests next year and warned that the leverage ratio – another way of measuring financial strength – would become part of the test in the future.

The Bank of England said that while the banking system was stronger than the 2008 banking crisis there were still other concerns. “Recent misconduct and other operational failings have highlighted that rebuilding confidence in the banking system requires more than financial resilience. That, and changes to banks’ business models in response to commercial and regulatory developments, make it important for banks to continue to enhance the effectiveness of their governance arrangements,” the Bank said.

Source: The Guardian(UK.)

Investing wisely in uncertain environment

The National Bureau of Statistics in its trade statistics for the third quarter of this year stated that the country recorded N359.6bn or 5.4 per cent drop in merchandise trade from N6.65tn to N6.29tn.

The decline was attributed to a fall in the value of exports and imports in the third quarter relative to the second quarter of this year.

Similarly, the Nigerian Stock Exchange recorded 35 per cent decline in foreign investments to N153.28bn in October from N226.68bn in September.

Experts say the reduced foreign investment is as a result of the unstable business environment due to insurgency and the fears of 2015 elections.

In view of these, experts advise that business managers have to make investments decisions in line with the changing business landscape for them to record success.

According to them, the old business models that guide investment decisions may not be effective as it used to but proper understanding of the business terrain and the risks involved may help out.

A report by Accenture states that firms face a number of challenges that complicate their efforts to choose the right ways to invest capital or operating funds.

The report titled,’ Invest to Win: Placing the right bets in a shifting competitive environment,’ said traditional approaches no longer meet stakeholder expectations; blurring industry lines and make the playing field less transparent than before.

It states that the current unprecedented changes taking place across industries have compromised many traditional investment approaches that worked adequately in the past adding that most companies cannot repeat historical investment patterns and expect to receive the same returns because their industries no longer grow at their former pace.

More so, organisations grow today by expanding into existing markets or creating new markets or product segments that meet customer needs, it adds.

The report advises business leaders to challenge themselves by identifying what customers really value and are willing to buy, and seek out new ways to exploit their current assets.

In the main, it says that companies aspiring to grow start by identifying how to deploy their assets in the following areas:

Opportunities in technology

The Accenture report states that advanced technology which involves the use of advanced mobile devices, digital software and sensors to monitor and maintain patient health on a 24/7 basis is a growth opportunity.

Moreover, it says the emergence of location-based apps that are transforming everything from hailing a cab to the convenient shopping experience online provides other opportunities.

New customer-centred initiatives

Customer-centred approaches make companies to offer one-stop shopping for current customers that goes beyond their traditional offerings. It adds that the goal is to understand what else consumers might want to purchase, and use the insights to sell more offerings or provide a service that enables it to increase its share of wallet.

Extending brands and generating customer bonding

The report says these can work, if the company’s assets and brands provide a plausible rationale, adding that leaders need to determine how they can improve the customer experience and what product add-ons to offer.

Areas of concern could include the expectations of new and innovative products that offer good value, as well as a positive, expedient customer experience with purchased products and subsequent service.

As a result of increased consumer expectations, the report explains that people also want companies to engage them digitally before and after a purchase, by having an online presence.

It says, “This implies that simply expanding a company’s brick-and mortar footprint will not generate the same levels of retail growth that it once did. Many customers also expect firms to exhibit good corporate citizenship and have effective sustainability strategies.”

Disruptive new entrants make an impact

Evolving customer demands keep raising the bar on expected company performance and the arrival of disruptive new entrants is changing competitive dynamics.

In the process, they are challenging incumbent business models and investment choices and in many cases, roiling established markets.

Citing the example of businesses with strong online presence, it says Uber, which digitally connects drivers that have cars for hire with people looking for transport, Gilt Groupe, an online fashion retailer, and Pinkberry, a restaurant franchisee in upscale frozen desserts have carved a niche for themselves.

It notes that in their early stages, each of these upstarts could have been a low-priced opportunity for existing players to develop a new market but they now represent competitive threats.

Companies need a clear rationale for any investment, which means that before deciding where to invest, they need to clarify why they are spending the money, what they expect in return, and over what time frame.

Choosing where to invest

To make wise investment decisions, the report suggests that companies can develop new products, services and solutions, investing to develop innovative offerings that consumers seek.

According to it, they can invest to maintain or expand an already introduced product’s position in the market, or focus on sales and specific channels, spending to improve their go-to-market capabilities.

It says, ”Strengthening marketing performance and brand image can be a way to go. Boosting the company’s pricing capabilities also makes sense. Actions here could include investing in capabilities to improve the organisation’s understanding of target customers, revising the positioning and promotion of offerings, and optimising the company’s returns for its offerings.”

Another option it suggests is simplifying and optimising the company’s internal capabilities in areas such as manufacturing, supply chain management or at the corporate centre by introducing new processes and technologies.

Source: Punch Newspaper

MOBOFREE MARKETPLACE LAGOS OFFICE TAKES OFF

MoboFree.com, the number 1 social marketplace in Nigeria and Africa is set to launch its local presence in Lagos, Nigeria as registered members in Nigeria grow significantly on a daily basis.

With over 3 million registered users, including 2.2 million in Nigeria and a strong footprint in Zimbabwe, Uganda and Ghana, MoboFree.comis among the largest and most successful mobile social and trusted classifieds platforms in Africa. MoboFree combines a social network and board of classifieds to create a platform where buyers and sellers can meet, place their ads, negotiate and make transactions safely and totally for free. 

The MoboFree technological platform makes buying and selling online easy for any user with any device, not only for PCs and smartphones but also for old phones with small screens (so called “feature” p

hones).

Cristobal Alonso, Co-founder and Chairman of the board of MoboFree, says “We are excited to be able to provide on-ground support to our growing customer base in Nigeria and and to create locally adapted & customised opportunities that will deliver and exceed desired returns.”

A few months ago the Company reported that Nigerians are selling unused items worth USD 526 million on MoboFree.com and shared expectations that the total volume of items for sale in its marketplace will likely reach USD 1.5 billion by 2015. In view of this poitential, establishing a local presence in Lagos is a natural next step in order to ensure more effective operations and achieve our targets.

MoboFree.com(http://www.mobofree.com is a leading African social marketplace allowing people to buy, sell and swap products and services with other trusted people. MoboFree.comcombines a social network and classifieds board into one integrated online platform and makes buying and selling online more fun, personal and safe. Over 3.3 million users are registered on MoboFree and together they generate on average around 60 million page impressions monthly. More than 2 million registered users are from Nigeria.

MoboFree currently has more than 3 million registered users, with more than 2 million users in Nigeria and a leading position in several other African countries such as Uganda and Zimbabwe. MoboFree users generate on average around 60 million page impressions monthly and upload thousands of new classifieds daily. The project sees ~3000 new registered members added every day.

4 Ways to Keep Learning Beyond the Classroom

"The moment you think you know everything about your business is the moment you lose your competitive edge," says Pat Flynn, a San Diego-based writer who focuses on online entrepreneurship. "Top athletes continue to train and learn in order to improve; a smart entrepreneur does the same."

I know you know that intuitively, but it can be hard to convince yourself that adding to your education is worth the time and money. Often the hang-up is seeing how those new skills can pay off in an existing business--and that's where I believe many small-business owners miss the mark. Learning a new skill can open up completely new avenues of growth and income for you and your business.

Take Lisa Lessley Briscoe. When her kids were old enough, the Portland, Ore., freelance technical writer returned to school at a local university to learn graphic design, taking one class per term. Today her business, Tappity Communications, attracts a wider range of clients.

"Going back to school gave me flexibility," she says. "Over the past year, I've done everything from branding to logo design to writing installation guides for dental chairs."

I can look to my father, a serial entrepreneur who didn't have a college degree, for evidence of the value of continuing education. While selling health-food products in the 1970s, he took a marketing class at a community college. After he'd implemented what he learned, his sales skyrocketed. When he started a manufacturing firm in 1985, Dad taught himself computer programming. The software he wrote gave his company a competitive advantage, allowing it to carve out a niche in a crowded marketplace.

But attending classes or picking up another degree or certificate aren't the only ways to boost your knowledge base. The methods below are small learning opportunities that can pay off big.

Mentors. When Briscoe met a man who owned a small letterpress studio, she asked to become an apprentice. He agreed. She spent one day a week learning the trade, and her added skills helps her attract new clients.

Tutors. I hired a Spanish tutor I found on Craigslist. After working with her for 18 months, I was proficient enough in the language to do volunteer personal-finance counseling at a nonprofit for migrant workers.

Conferences. Each year I speak at a handful of conferences where attendees glean targeted information while expanding their network of contacts. I'm able to connect with experts who might otherwise be unapproachable, as well as speak with and learn from other entrepreneurs who wrestle with similar problems.

Books. To get myself out of debt, I read dozens of books about saving and investing. On a whim, I created a website to share what I was learning. Within five years, I'd built a booming business and published my own book, all because I used the resources of the public library to learn something new.

Source: www.entrepreneur.com

GBP Bulls Refusing To Surrender - FXTM

Never underestimate the resilience of the GBP bulls, their ability to creep out from the woodwork and put up a fight to regain control is admirable. The GBPUSD just received a 40 pip boost following the announcement that UK Services PMI rose to an 8-month high in July. This followed Monday’s 50 pip upturn, after the UK’s latest Markit Construction PMI surpassed expectations.

The news that the UK Services PMI increased to an 8-month high will be domestically looked at favorably for several reasons. Firstly, the UK services sector remains the United Kingdom’s main GDP contributor, which means this release should bode well for the UK’s Q3 GDP. Secondly, the services sector employs around 80% of the UK labour force. This is encouraging for next Wednesday’s UK Jobless Claims data release. A lower UK unemployment rate is seen as a crucial factor guiding the Bank of England’s (BoE) decision to raise interest rates. According to BoE Governor Carney, a UK unemployment rate below 6% might influence the central bank’s decision.

The GBPUSD’s recent decline, which has included 12 days of losses out of a possible 13 trading days have certainly raised a few eyebrows. However, some patience is required here. It is important to bear in mind that due to the escalation of various political tensions which dominated the headlines throughout July, investors became attracted to safe havens, such as the USD. Additionally, UK economic releases were low in volume. The UK data that had been released included UK Mortgage Approvals which rose more than forecast, alongside UK House Prices which increased by around an annualised 10%. The BoE have made it no hidden secret lately that they view the domestic housing sector as one of the largest risks to the UK economy. Therefore, it is understandable for such news to have also contributed to the GBPUSD’s recent decline. 

The majority of the UK’s other fundamentals have performed consistently impressively over the past year, as seen by the latest Construction and Services PMI. If tomorrow’s Industrial and Manufacturing Production data impresses, expect the GBP bulls to start collecting enough momentum to charge again at the BoE’s door, which will likely heap further pressure on Governor Carney to raise interest rates.

Written by Jameel Ahmad, Chief Market Analyst at FXTM.

For more information please visit: Forex Circles

NSE records N19.5b turnover in three days

A TURNOVER of 1.345 billion shares worth N19.580 billion was exchanged in 17,075 deals by investors on the floor of the Nigerian Stock Exchange lastweek, in contrast to a total of 1.778 billion shares valued at N38.103 billion that changed hands in 24,186 deals during the pre ceding week..

   The drop in turnover, may, however, be attributed to the two-day holiday declared by the Federal Government to commemorate the  Eid Ul Fitri celebrations.

   Specifically, the financial services industry (measured by volume) led the activity chart with 1.019 billion shares valued at N9.004 billion traded in 7,704 deals; thus contributing 75.78per cent and 45.98 per cent to the total equity turnover volume and value respectively. 

   The conglomerates industry followed with a turnover of 105.811 million shares worth 696.406 million in 1,262 deals. 

   The third place was occupied by the oil and gas Industry with 88.513 million shares worth N2.692 billion in 3,157 deals.

   Trading in the top three equities namely- Access Bank Plc, Wema Bank Plc and Transnational Corporation Of Nigeria Plc (measured by volume) accounted for 539.349 million shares worth N3.514 billion in 1,654 deals, contributing 40.10per cent and 17.95per cent to the total equity turnover volume and value respectively.

   Also traded during the week were a total of 27,660 units of Exchange Traded Products (ETPs) valued at N613,729.40 executed in 13 deals compared with a total of 516,299 units valued at N10.120 million transacted last week in 17 deals.

   Similarly, 77,480 units of FGN bonds valued at N90.277 million were traded this week in 8 deals compared with a total of 300 units of FGN bonds valued at N349, 812.46 transacted last week in 3 deals.

  The NSE All-Share Index and Market Capitalization depreciated by 0.83per cent to close on Friday at 41,934.40 and N13.847 trillion respectively.

Similarly, all the NSE sector indices depreciated during the week with the exception of the NSE Consumer Goods Index, NSE Oil and Gas Index and NSE Industrial Goods Index that appreciated during the week by 0.14per cent, 3.93per cent and 0.41per cent respectively. Meanwhile, NSE ASeM index closed flat.

27 equities appreciated in prices during the week higher than 26 equities of the preceding week. 

   47 equities depreciated in prices lower than 54 equities of the preceding week, while 126 equities remained unchanged higher than 120 recorded in the preceding week.

Source: Guardian Newspaper

Traditional banks may not exist by 2025 – PwC

A new report by Pricewater-houseCoopers has suggested that between 2025 and 2030, a market economy without banks of the traditional kind may exist.

The report entitled, ‘The future shape of banking’, said the barriers for non-banks to provide ‘core’ banking services had continued to decline.

“However, banks retain some substantial advantages to help them to prevent this from happening: Banks’ brands and reputations remain powerful, shored up by familiarity, experience and regulation,” the report added.

The Head of Financial Services, PwC Nigeria, Mr. Gabriel Ukpeh, was quoted in a statement on Sunday, as saying, “The status quo is no more but the need for banking services remains. Corporate history is full of cautionary tales about incumbency advantage being lost at the turn of technological cycles.

“Banks still have advantages and alternative providers suffer from a lack of trust but to be part of the future, banks need to invest heavily, rediscover and reassert their core role in society, and secure the ongoing support of policymakers.”

According to him, the success of M-Pesa in East Africa has been attributed to speed, convenience of completing transactions and its ability to reach the region’s banked and largely unbanked population in both the urban and rural areas.

M-Pesa offers a branchless banking service; and users a able to complete basic banking transactions without visiting a bank branch, he added.

Ukpeh said similar trends had crystallised in the Nigerian market space with the use of eTranzact’s PocketMoni and Quickteller platforms.

The PwC official said the financial inclusion strategy of the Central Bank of Nigeria, the drive towards a cashless society and its availing opportunities were evidences of changing landscapes and opportunities for a financial sector whose borders were changing with the entry of new players and cultures.

He said, “The biggest danger for banks is if they lose sight of customer transactions to other players in the value chain, thereby also losing insight into customer behaviours and allowing the power of their brands to diminish.

“In April 2014, the Financial Times reported that Facebook was on the verge of securing approval from Ireland’s apex bank to become an ‘e-money’ institution. This would allow Facebook to issue units of stored monetary value that represent a claim against the company.”

He further said, “New non-bank entrants and technological advances will challenge banks’ business models and fundamental change is inevitable. The only question is how much of banks’ traditional territory the new entrants will occupy.

“Banking services will migrate increasingly away from physical, tangible distribution into technology enabled channels. Banks will have to redefine the power of their brands as a less risky and more reliable platform if they are to remain competitive in the fast paced markets of today.”

Source: Punch Newspaper

How low can EUR/USD go? - FXTM

Over the previous week, the EURUSD has recorded several fresh 2014 lows and the pair registered a further one yesterday. The EURUSD continued to be sold in anticipation of the latest German CPI data, but it was the US GDP announcement which triggered bearish movement.

The latest figures from the US Department of Commerce showed that the US economy expanded by an annualised 4% between April and June, far surpassing all expectations. The EURUSD fell as low as 1.3369 on the news, its lowest valuation since the 13^th November 2013.

Where this pair movesfrom here will be largely dependent on how the markets react to today’s German employment report and EU CPI. Although on headline it would appear that the EU CPI is higher risk, it is worth keeping a close eye on the German employment report. Although it is widely expected that EU CPI remained at 0.5% for the third successive month in July, it does appear that the ECB are prepared to offer their recentstimulus measures time before considering the possibility of implementing QE. As long as EU CPI refrained from further decreasing last month, this might provide the EURUSD with some breathing space.

In reference to the German employment report, this is where investors looking for downside moves could find more opportunities. The German economy has been a casualty of the geopolitical conflict in Eastern Europe, with their recent IFO data representing a third consecutive decline. Additionally, the Bundesbank recently warned that there is a possibility that the German economy stagnated in Q2.

It is currently expected that the German employment sector contracted by 5,000 jobs in July and if this is confirmed, it will add additional pressure on the EURUSD valuation. Potentialupcoming EURUSD support levels can be found located at 1.3365 and 1.3335.

Written by Jameel Ahmad, Chief Market Analyst at FXTM.

For more information please visit: Forex Time

Is GBPUSD oversold and ready for a rebound? - FXTM

It is difficult to understand how the GBPUSD has sharply transitioned from registering a new 5-year high (1.7189) to recording eight days of successive losses for the first time since May 2010. The pair declined by a further 50 pipsand reached a six-week low on Tuesday after the latestUK Mortgage Approvals were stronger than expected. Bank of England (BoE) Governor, Mark Carney had previously expressed opinion that the UK housing sector posed one of the largest threats to the UK economy.

A major contributing factor behind the recent GBPUSD decline is not necessarily due to faltering UK economic optimism, but due to international geopolitical tensions attracting the attention of the financial markets. Over the past week, investors have been attracted to safehavens, such as the USD, and this has devalued the GBPUSD.

Looking at the Daily timeframe, as long as geopolitical tensions quieten down technical traders could now be observing an ideal time to look into this pair. Both the Stochastic Oscillator and RSI are each suggesting that the GBPUSD is oversold and looking at the historical correlation between these two momentum indicators, the price seems to quickly rebound after approaching the oversold boundaries. Additionally, the pair is now only a fractional distance away from a bullish trendline that has controlled the overall direction of the GBPUSD since November 2013. If the trendline is touched, it should either act as a dynamic support level or further support can be found at 1.6919.

In order for the GBPUSD to bounce back, the bulls need a reason to rally. Tomorrow afternoon, the US 2^nd Quarter GDP release may provide an opportunity. It is currently expected that the US GDP will be announced at around 3%, but the markets will be keeping a very close eye on what proportion of the 1^st quarter GDP contraction was recovered in the following quarter.

I remain unconvinced that the US economy recovered as much of the 2.9% Q1 contraction as currently expected. A large amount of the economic contraction was caused by reduced consumer expenditure and construction activity. Recent US consumer data can be considered soft, such as the past three Advance Retail Sales missing expectations, alongside average wage growth declining. This raises a threat that a proportion of the reduced consumer expenditure in Q1 (which reportedly accounts for 70% of the overall US GDP), might not have been recovered in Q2. In reference to the US construction sector, it is possible projects that were delayed during the atrocious winter weather period have since commenced, but only 6,000 construction jobs were created by the US economy in June. Furthermore, the US construction sector remains over 20% bellows its peak before the global financial crisis emerged.

If the US GDP does disappoint, this will likely bring some risk appetite back into the currency markets. It will also allow an opportunity for the GBPUSD to begin rebuilding some of the previous week’s lost momentum. Due to the UK economic calendar being light this week, exactly how the markets react to the US GDP release will likely determine the GBPUSD’s next move. In regards to the next noticeable economic release from the United Kingdom, RBS are currently suggesting that Friday’s Manufacturing PMI for June will be recorded at a yearly high.

If this is confirmed, we can expect the GBP bulls to wake up.

Written by Jameel Ahmad, Chief Market Analyst at FXTM.

For more information please visit: Forex Circles 

UK. Regulators want reckless bankers to be criminally liable under new plans

The bosses of leading City firms are to be made more accountable for their actions under proposals that could make them wait up to seven years for their bonuses and potentially be jailed if their banks fail.

Responding to recommendations made by the parliamentary commission on banking standards, the two main City regulators on Wednesday set out lengthy consultations (pdf) aimed at framing a new licencing regime for bankers and the creation of a "potential criminal liability under a new offence relating to a reckless decision causing a financial institution to fail".

The Financial Conduct Authority and the Bank of England's regulation arm, the Prudential Regulation Authority, want the new regime to be in force by January next year and would force bankers to prove they had acted appropriately – a reversal of the burden of proof.

Bankers would be subjected to annual checks to ensure they comply with a regime which covers those involved in what is known as a "significant harm function".

"The behaviour and culture within banks played a major role in the 2008-09 financial crisis and in conduct scandals such as payment protection insurance mis-selling and the attempted manipulation of Libor. However, under the statutory and regulatory framework in place at the time, individual accountability was often unclear or confused. This undermined public trust in both the banking system and in the regulatory response," the regulators said.

But the regulators have stepped back from the idea of the parliamentary commission – set up in the wake of the Barclays' fine for rigging Libor two years ago – that bonuses be deferred for as long as 10 years.

"The PRA and FCA note that increasing the overall length of deferral is not the only way in which the typical present pattern of deferrals might be altered to improve risk alignment. There is scope to increase the proportion of awards that are held for longer within the overall deferral period, either by requiring a greater proportion of awards to be deferred, or by delaying the start of vesting, which typically starts a year following the initial award," the regulators said.

Instead, for the most senior bankers, bonuses must be deferred for seven years and for less senior staff for five years, according to the consultation.

But new rules coming into force will allow bonuses to be clawed back for up to 10 years. This would force bankers to repay bonuses already received as well as having deferred bonuses withheld.

The regulators are also looking at ways of stopping bankers being bought of their bonuses by new employers, and avoiding a repeat of scenario at Royal Bank of Scotland where former CEO Fred Goodwin's pension payments were eventually reduced.

The regulators note that the longer deferral periods for bonuses and tougher regime "may affect the labour market as risk-averse staff might be less willing to take on additional responsibility and progress to senior management level as a result".

Since the 2008 banking crisis changes have already been made to bonuses to ensure top bankers no longer receive payouts entirely in cash and that they are deferred for at least three years. New rules this year require bonuses to be capped at one times salary or twice if shareholders approve.

"While the PRA and FCA believe the new regime will deliver significant improvements, behavioural and cultural change must also come from individuals themselves as they carry out their roles," the paper said.

Source: The Guardian(UK.)

How to Grow a Site Into a Successful Venture With Just Content

Have you ever taken a long, hard look at the world of SEO and Internet marketing?  It can be a horrendously complicated place. There’s so much to keep track of, so much to make sure you do or don’t do, so many guides (both relevant and outdated) available to follow, not to mention the number of companies willing to do the work for you. All these moving parts, it becomes a bit overwhelming for entrepreneurs to determine where to start and how best to use their time.

After building a successful website, one thing I discovered is that while all the above can help build your business, what it really comes down to is good content. Good content increases traffic.

That said, while I was able to run a successful based on the power of content, I didn't completely ignore the rules laid down by Google.  I still pay attention to the mechanics of the site, the key phrases of the content and the tricky little issues that can escalate into Google penalties if left unchecked.  

For those looking for a little assistance, here are a few tips.

Create a powerful foundation. If you want to grow a site through content, you need a powerful platform to put it on.  Essentially, your site needs to meet two basic criteria:

Easy to use.  This is everything from a mobile-friendly design to a simple, clean theme.

Fits Google's requirements. This means minimal advertising, an appropriate use of meta-robots directives, clean code and a fast-loading host.

All of this is a one-time investment with a revaluation every year or so.

Pure quality content can, to a certain extent, counterbalance a few of these aspects.  Users will tolerate a longer load time to get to content they find truly valuable or forgive a slightly wonky layout, as long as they can find what they need. Google is a little less forgiving: attracting them with content isn’t necessarily going to save you if the crawlers can’t reach it through broken code. 

Focus on high-volume content. Once you have the site set up, you need to produce content.  I have high standards for the content I publish on my sites. 

I aim for a length of more than 1,000 words, though rarely beyond 2,000.  Longer content gives more space to talk about the reasoning behind decisions, the history behind trends and the like.  That said, I don’t focus on the length. I write as long as it takes to cover the subject without fluff and with sufficient depth.

I have a fairly tight focus on the content topics.  I have an industry focus, and I stick with it. 

I have zero tolerance for typos and grammatical errors. 

I will sometimes let casual language slide. To make a point or to make a phrase stand out, the technically correct grammar sometimes falls behind. 

I jumped into publishing seven posts per week immediately.

The last point is really the key to thriving on content.  Every piece of content is an opportunity.  It’s a chance to talk about a new subject, to attract new readers and to gain incoming links. 

Have all-natural organic links. At this point, you’ve read pretty much my entire SEO strategy.  I publish content and that content does the work for me. Due to their length, depth and value, they’re often among the top ten in search results. 

Let it be known that valuable content can stand on its own and attracts readers – some of them other blog writers. Some of these blog writers are going to be interested enough in the content to share it in a post of their own.  These are valuable links. They aren’t paid for, published by me on another site or part of link directories. They’re entirely organic.

Once again, it comes back to the idea that every post is an opportunity.  I want to gain the attention of fellow bloggers who will link to my content, but I don’t want to do it by shoving my blog in their face at every turn.  Instead, I learn what they’re interested in reading about, and I write valuable content on those topics. 

Don't have SEO be your main concern. Link building isn’t the only part of traditional SEO that I set aside.  I also don’t pay much attention to keywords. The idea of focusing on specific keywords for value has been on the decline for some time, and Google’s interpretive search has further diminished it.  I use Google's Authorship (a service that allows people to link their content to their Google+ profile), but I don’t go out of my way to share every post I make on Google+.

The reason being is every step Google has made is designed to emphasize valuable content over search-engine techniques.  They’re slowly devaluing links, they’re putting the squeeze on Authorship, they’ve diminished the power of keywords, all while promoting content that meets the various requirements and standards they set for relevance and value.

Culled: from www.entrepreneur.com

Apple, IBM partner on mobile devices for business

IN a “landmark” partnership to win over business customers, Apple and IBM have offered iPhones and iPads that are specially tailored to the corporate world.

   The tie-up on Tuesday between what were historically rivals aims to boost Apple’s share of the market for mobile devices for businesses and will offer custom-made apps which bring the power of IBM’s supercomputing analytics to a mobile workforce, a joint statement said.

  “The landmark partnership aims to redefine the way work will get done, address key industry mobility challenges and spark true mobile-led business change,” the statement said.

  “Apple and IBM’s shared vision for this partnership is to put in the hands of business professionals everywhere the unique capabilities of iPads and iPhones with a company’s knowledge, data, analytics and workflows.”

  The companies plan to release more than 100 industry-specific enterprise solutions including apps developed for the iOS platform, along with IBM cloud services, security and analytics.

    The Agence France Presse (AFP) said that as part of the deal, IBM would also sell iPhones and iPads tailored to specific industries.

  “For the first time ever, we’re putting IBM’s renowned big data analytics at iOS users’ fingertips, which opens up a large market opportunity for Apple,” said Apple’s chief executive, Tim Cook.

  “This is a radical step for enterprise and something that only Apple and IBM can deliver.”

  Ginni Rometty, IBM chairman, president and CEO, said the alliance “will build on our momentum in bringing these innovations to our clients globally.”

  The deal was the result of several conversations between Cook and Rometty over the last few months, the Re/code website said.

  “If you were building a puzzle, they would fit nicely together as puzzle pieces with no overlap,” Cook told Re/code of the two companies.

  “When you put our teams in the room together, we both have engineering cultures, so they feed off one another. And when you do that you end up with something better than either of you could produce yourself.”

  Rometty said of the relationship between IBM and Apple: “We both think of each other as the gold standard.”

  Industry analyst, Jeff Kagan called the tie-up between what were fierce competitors an “incredible turn of events.”

  “Apple is looking for growth in the business community for their devices like iPhone, iPad and iCloud services. IBM is the company who can help Apple do just that,” he said.

  “The mobile and telecom space is one of the hottest-growing segments. Apple really has not done a great job on the business side of the market. That’s why this deal with IBM seems to make so much sense.

  “We’ll have to see if this works, but the thinking behind it sure makes sense.”

  Apple will create a new service and support offering tailored help, while IBM will manage some of the functions like device activation and security.

  The deal also includes a private app catalog, and helps business customers transform IBM services for mobile devices.

  The new offerings will be pushed through Apple’s new mobile operating system, iOS 8, which was unveiled in June.

  The news comes with Apple seeking to boost growth amid a global onslaught of smartphones and tablets using the Google Android operating system. While Apple is popular among many consumers, its appeal to corporate users has been more limited.

  The research firm, IDC said it expects Android smartphones to remain ahead of the pack with an 80.4 per cent market share in 2014, and that Apple’s market share for the iPhone is forecast to be 14.8 per cent.

  A survey by Strategy Analytics said Android grabbed 65.8 per cent of global tablet sales in the first quarter, up from 53 per cent a year ago. Apple, meanwhile, saw iPad sales slump and its market share tumbled to 28.4 per cent from 40.3 per cent a year earlier.

Source: Guardian Newspaper

INVESTORS CONTINUE TO IGNORE EUROPEAN CENTRAL BANK (ECB) PRESIDENT

ECB President, Mario Draghi

Despite the EU economic sentiment remaining bleak and European Central Bank (ECB) President Draghi reaffirming his displeasure with an elevated EURUSD only last Thursday, investors remain undeterred from purchasing the EURUSD. The pair recorded a second consecutive day of gains and advanced to 1.3611.

This increase in valuation materialized despite disappointing economic releases. For the second day running, all spotlight was on Germany and in continuation with a recent unfamiliar pattern, their metric data raised a few eyebrows. On an adjusted monthly basis, imports contracted by 3.4% (sharpest decline in nearly two years) with exports also contracting by 1.1%.

The GBPUSD pair marginally increased in valuation to 1.7130; however, this was not withstanding a rollercoaster of volatility. Following last week’s Markit Manufacturing PMIs cataloguing its highest reading since November 2013 an assessment that the sector was currently “flourishing”, optimism was high for Tuesday’s Manufacturing Production reading. Unfortunately, the bulls were thwarted.

The GBPUSD dropped around 60 pips following the surprising news that on a monthly basis, manufacturing production contracted by 1.3%. Industrial Production followed a similar pattern, recording a 0.7% monthly contraction. As the day progressed, further losses were spared and the GBPUSD subsequently bounced back when June’s NIESR GDP estimate showcased that UK second quarter economic growth increased to 0.9%, up from 0.8% in the previous quarter.

Moving onto the USDJPY and despite metric data releases from both countries being low, this pair collected its third day of consecutive losses. The USDJPY dropped 30 pips and concluded trading at 101.565. This was likely linked to Monday’s announcement that Japan’s Trade Deficit narrowed slightly in May, alongside Deputy Bank of Japan Governor Nasako displaying confidence during a speech in Tokyo that the Japanese central bank will be internally prepared to deal with withdrawing from Quantitative Easing.

The Aussie continues to show resilience in spite of dovish comments from RBA Governor Stevens last week that investors were underestimating the chances of a significant fall in the Australian currency. The Australian economy received a boost, following the announcement that Westpac Consumer Confidence rose 1.9% in July to 94.9 and the AUDUSD concluded trading at 0.9357.

Finally, the NZDUSD reached its highest valuation since August 2011 after credit ratings agency Fitch Ratings reaffirmed the country’s AA rating and upgraded its outlook from stable to positive. The NZDUSD increased as high as 0.8804 on the announcement and concluded trading at 0.8785. The 0.88 level has previously been viewed as a psychological resistance level for the pair and in April, a dovish speaking RBNZ threatened implementing currency intervention methods to prohibit investors purchasing their currency.

The New Zealand central bank are unlikely to verbally threaten currency intervention yet though, and will likely wait to see whether tonight’s Federal Reserve FOMC Minutes release inspires risk appetite into the currency markets.

This could be a story that develops as we head into the next trading week.

Written by Jameel Ahmad, Chief Market Analyst, FXTM.

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