Arvind Subramanian’s piece in the FT arguing that the renminbi could become the world’s reserve currency within a decade strikes a chord since I spent the past couple of weeks in Hong Kong and China.
Rather like Mandarin is already rivalling Cantonese as a language in Guangdong province, Hong Kong residents are increasingly keen to hold savings in renminbi over Hong Kong dollars, given the latter’s peg to the US dollar. Read more
Good morning and welcome to our rolling coverage of the long-awaited report from Sir John Vickers on UK banking reform.
You can find the text of the official report at the Vickers site.
Megan Murphy (MM), the FT’s investment banking correspondent, will guide us through the report.
12:00, MM: Sir John Vickers is calling a wrap on the press conference now, on the dot of midday.
A very interesting 90 minutes, with a strong defence of the commission’s work and what it is trying to achieve not only from Sir John, but most notably from the FT’s Martin Wolf and Bill Winters, the former co-head of investment banking at JPMorgan.
The banking industry may be taken aback by the tone of some of their commentary, as well as their conviction that ring-fencing is the best solution for removing the implicit taxpayer subsidy of universal groups, regardless of the direction taken by regulators/governments in other countries. That concludes the live blog for now, but we’ll be keeping an eye on developments and will post again later on anything new. Read more