8.41 -0.05 (-0.59%)
Pre-Market: 4:20AM EST
|Bid||0.00 x 21500|
|Ask||8.46 x 4000|
|Day's Range||8.43 - 8.70|
|52 Week Range||6.54 - 10.22|
|Beta (5Y Monthly)||0.81|
|PE Ratio (TTM)||75.54|
|Forward Dividend & Yield||0.46 (5.28%)|
|Ex-Dividend Date||Feb 26, 2020|
|1y Target Est||9.56|
(Bloomberg) -- South African labor unions have rejected a government proposal to review planned increases for civil servants days before they were due to be implemented.The Public Servants Association, which represents 230,000 government workers, said the state on Tuesday asked to review the last leg of a three-year pay agreement because it couldn’t afford it. Finance Minister Tito Mboweni is due to announce the annual budget on Wednesday.“The timing of the proposal, a few days before the adjustments were due to be implemented, speaks of a government that regards public servants as an easy target to resolve its financial woes,” the PSA said.Pushing the proposals through in the budget speech will be seen “as a declaration of war,” the Central Executive Committee of the Congress of South African Trade Unions, the country’s biggest labor federation, said in an emailed statement. Earlier this month, Cosatu said the government is seeking to cut 30,000 civil-servant jobs as Mboweni seeks to rein in government debt and get economic growth going.“The CEC views this action by the government as a direct attack on collective bargaining, which will never be accepted,” Cosatu said. “This irresponsible and blatant act of provocation will seriously destabilize the public service and we warn the government to abandon this idea and give workers what is due to them.”What Bloomberg’s Economist Says“Public wages are set through bargaining with unions and agreements stay in force for three years. The current agreement is in place until March 2021, making it unlikely that the Treasury can report much progress on its efforts to address the wage bill before negotiations are finalized by the end of the year.”\-- Boingotlo Gasealahwe, Africa economist\- Click here to view the researchFreezing wages in the public sector could save as much as 128 billion rand ($8.4 billion) over the next three years, Barclays Plc economist Michael Kafe said in note dated Feb. 24. Barclay’s base case scenario is that Treasury will only be able to save 7 billion rand over the period because the government lacks the political will to cut payroll costs before the ruling party’s national general conference in June.The wage bill accounts for more than 35% of government spending.(Updates with comment from Cosatu starting in fourth paragraph.)To contact the reporter on this story: Antony Sguazzin in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: John McCorry at email@example.com, Vernon Wessels, John BowkerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
LONDON/MILAN, Feb 25 (Reuters) - Investment banks including Citigroup Inc, Credit Suisse and Nomura Holdings Inc have curbed trips to Italy on fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, four sources told Reuters. Citi has told staff heading to Italy's financial capital Milan or other northern cities to postpone their trips or seek approval from top management if they are working on sensitive deals, the sources said, speaking on condition of anonymity as banking policies are confidential. Credit Suisse has also informed bankers looking to travel to and from Northern Italy including airports in Milan and Bologna that they will require extra permissions, two of the sources said.
Edward Bramson, the activist investor targeting Barclays, has called on the bank’s chairman to end the “cycle of disruption” at the lender after British regulators opened an investigation into the relationship between its chief executive and Jeffrey Epstein. In a letter to his investors, Mr Bramson said the Epstein probe was “another example of governance weakness that has led, inevitably, to the recurrent public disappointments and embarrassments which have plagued Barclays for so long”. The investigation by the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority is focused on whether Mr Staley downplayed his relationship with Epstein by characterising it as professional, according to multiple people briefed on the probe.
(Bloomberg Opinion) -- European banks have a problem with their boardrooms.From the Anglo-Asian giant HSBC Holdings Plc to Spain’s Banco Santander SA and Switzerland’s Credit Suisse Group AG, a troubling phenomenon has become apparent at many of the region’s lenders: the weakness of the body tasked with ensuring the company’s success.Bankers are already under pressure because of rock-bottom interest rates and digital disruption, so it’s far from ideal that their boards appear slow, clumsy and overly beholden to their chief executives. Proper corporate governance matters as much now as it did during the financial crisis. While lenders may be simpler and safer by some measures, they’re still impenetrable to the outside world, and new risks are always emerging. Their CEOs need to be chosen, managed and held in check more effectively.An endless series of boardroom dramas has beset Europe’s banks in the past year. Consider HSBC. the continent’s biggest lender has just embarked on its biggest overhaul in decades (its third attempt to adapt to the post-crisis era), a plan that involves tens of thousands of job cuts, scrapping buybacks and reallocating capital to more profitable businesses. It’s hardly the time to be leaderless.Yet six months after ousting CEO John Flint, who only held the job for a year and a half, HSBC’s board hasn’t made up its mind whether it wants to give his interim replacement Noel Quinn the job, or to hire externally.In fairness, finding the right boss for a sprawling bank with a $2.7 trillion balance sheet is the most important task of the board and Chairman Mark Tucker — alongside setting the strategy. It mustn’t be rushed. But a strategic overhaul of this magnitude needs a leader who owns the new plan. The longer the appointment drags out, the tougher it will be for Quinn to execute; and the harder it would be for a credible external candidate to implement someone else’s turnaround story. The board has given itself until as late as August, but time isn’t on its side after the favorite outside candidate, UniCredit SpA’s Jean Pierre Mustier, committed himself to his current employer.HSBC’s board is in fine company when it comes to messy situations. At Barclays Plc, another regulatory probe into CEO Jes Staley — this time looking at his relationship with the disgraced financier Jeffrey Epstein — raises questions about oversight at the top of the firm. Staley was fined previously for attempting to unmask a Barclays whistleblower. The London-based bank took two months to go public on the latest inquiry, and it hasn’t shared details of its own review into the CEO’s relationship with Epstein. While one shouldn’t jump to conclusions, more transparency from the board would have been invaluable to investors.Elsewhere, the Credit Suisse board hardly covered itself in glory during a months-long spying scandal that cost CEO Tidjane Thiam his job. While Thiam was cleared of knowing about the surveillance operations against employees, past and present, it’s pretty damning that neither he nor the board were aware of those activities being carried out by key personnel. The Swiss giant’s directors must share responsibility for an episode that damaged the bank’s reputation and upset employees.In April, Santander faces its own embarrassing showdown in a Spanish court. After withdrawing its offer of the CEO post to Andrea Orcel — the former head of investment banking at UBS Group AG — over a disagreement on pay, Santander is being sued by Orcel for more than 100 million euros ($108 million). Why Santander would have agreed to honor UBS’s generous financial obligations to Orcel, and then withdrew the proposal, is unclear. A detailed account of alleged text messages between Santander Chairman Ana Botin and Orcel and his wife, published by Reuters, points to personal relationships possibly playing a bigger role than they should have in a CEO appointment.For its part, UBS botched its own internal CEO succession plan, and eventually hired Ralph Hamers from ING Groep NV — despite the Dutch bank’s failings over money-laundering and Hamers’s lack of experience in UBS’s core businesses. That was a controversial move by the directors of the world’s biggest wealth manager. In the age of the “purposeful company,” bank boards should be leading the way on properly representing their shareholders, as well as employees and society. It isn’t obvious whose interest they’ll serve by remaining so ineffective. To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Barclays PLC (NYSE: BCS ) is set to search for a new CEO to take over from Jes Staley. Barclays is looking for a change in leadership as Staley, who has been the CEO since 2015, prepares to exit. The Financial ...