Stuart Gulliver’s crisp explanation this week of why he once held his annual bonuses in a Swiss private bank account via a Panamanian company was plausible yet somehow more puzzling than if he had been evading tax.
Here is a quiz: with which big three auto companies has Google partnered to build a self-driving car? If you guessed Ford, General Motors and Fiat Chrysler, you are wrong. The correct answer is Bosch, Continental and Delphi, three of the industry’s global suppliers.
Money laundering is when someone channels the cash from robbery, fraud or expropriation into a Swiss bank account, or an expensive apartment in Manhattan, to make it look clean. So what is the term for sullying profits from legal enterprise with tax evasion and shenanigans? Money staining, perhaps.
Nicolas Brusson, the founder of BlaBlaCar, the French ride-sharing start-up that in June raised $100m to expand across Europe, got the biggest laugh of the week at the DLD technology conference in Munich. Asked about operating in a “single market” with 28 sets of laws and regulations, he replied: “When you start from France, everything looks simple.”
© Charlie Bibby
It was a kinder, gentler and more strategic Travis Kalanick, founder of Uber, who took to the stage at the DLD technology conference in Munich on Sunday to offer the mayors of European cities a “new partnership” with the ride-hailing network, rather than a bitter legal and regulatory battle. Read more
There comes a time in most people’s lives, usually very late in the lives of self-made billionaires, when they settle their affairs and divide up their assets to put everything in order for the family. It has the added benefit for business moguls of pleasing the shareholders.
Goldman Sachs caused a bit of a stir this week by issuing an analysts’ report suggesting JPMorgan Chase might want to break itself up. I believe in the independence of investment bank research as much as the next person, but it is hard not to notice that the major beneficiary of such a step would be Goldman Sachs.
This has been the year of Uber. “Everyone is starting to worry about being Ubered,” Maurice Lévy, chief executive of advertising group Publicis, told the Financial Times this week. The sharing economy in which online platforms co-ordinate hundreds of thousands of freelancers to drive cabs, rent rooms (Airbnb), clean laundry (Washio) and perform other services has arrived.
Any good consultant can produce a report giving the answer the client prefers, and Kevin Mandia, the man hired by Sony’s film studio to investigate its embarrassing hacking attack, did so this week. Michael Lynton, Sony Pictures’ chief executive, emailed his staff Mr Mandia’s assessment that it was “an unparalleled and well-planned crime” involving “undetectable” malware.
Ana Botín has wasted little time since becoming chairman of Banco Santander in September, last week appointing a new chief executive. Like Abigail Johnson, installed as chief executive of Fidelity in October, she worked hard for her job, but it is inescapable that both are members of founding families. For women lacking a birthright, the route to the top in financial services is tough.
The price of oil keeps on falling; the shale gas boom has reduced the price of natural gas in the US to a third of that in France; Germany has appealed to Sweden for its support in expanding two coal mines; and the EU’s effort to switch to clean energy is troubled. For companies wondering where to locate, the world has turned upside down.
Some years ago, I was feeling anxious and went to talk to a psychiatrist. After I had explained my worries and how I felt like responding, he paused for thought and asked: “Have you considered doing nothing?
After the spectacular chaos of the last time that regulators and governments scrambled to rescue banks in the US and Europe, they have hammered out a plan for the next time. It is better than the absence of one in 2008 but who knows if it will work?
Taylor Swift, the singer-songwriter, has removed her entire catalogue from Spotify, the music streaming service founded in Sweden. Ms Swift’s new album 1989 sold nearly 1.3m copies in the US this week, and she has written that: “Valuable things should be paid for. It’s my opinion that music should not be free.”
Traditionally, one thing upon which the British could rely was that they never heard anything about, or from, the security services, apart from in James Bond films. That has changed. First, Sir John Sawers, the new head of MI6, has Lunch with the FT and now Robert Hannigan, left, the new head of GCHQ, has written an op-ed for the paper.
Apart from indicating that the FT has become the communications channel of choice for British spies, it shows that the security services have decided that it is no longer enough to fight in the shadows. They have to get their message across loudly, in parliament and in public. Read more
There is something peculiarly impressive about the video below of Mark Zuckerberg, founder of Facebook, talking in Mandarin to students at Tsinghua University in Beijing. If nothing else, it shows a dedication to the country’s customs that very few foreign business leaders can match.
Forty years ago, when Janet Yellen, chairwoman of the US Federal Reserve, was an economist at Harvard University, she was interested in the film Five Easy Pieces. She noted the scene in which a diner waitress refuses to bring Jack Nicholson’s character an omelette with coffee and wheat toast because it serves omelettes with cottage fries and rolls. “I know what it comes with, but it’s not what I want,” he retorts.
Technology has its eyes on banking. Apple is expected this week to launch Apple Pay, its touchless payment system for iPhones; venture capital funds are pouring money into “fintech” start-ups; and Marc Andreessen, the technology entrepreneur, talks of “a chance to rebuild the system. Financial transactions are just numbers; it’s just information.”
Mark Carney © Photo by Chris Watt – WPA Pool /Getty Images
Mark Carney, governor of the Bank of England, would not win a popularity contest among directors of banks at the moment. Yet he and the Bank are taking a stance on individual responsibility that most people think is long overdue. Read more
Star fund managers are very valuable people, but not as valuable as they think they are. In a world of precise calculations and spotting the arbitrage opportunities between prices, this is one gap they fail to notice.