Archive for March 2015

Can banks still make decent profits under the regulatory suppression?

Ugne Pakalniskyte Belgian prosecutors accused HSBC’s private banking division of helping high net worth Belgium citizens avoid the countries mandatory 35% tax on interest, according to spokesman for the court. As stated by the prosecutor himself, HSBC private bank allegedly advised clients to move their money into offshore companies in order to avoid this tax.…

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BASF: An Update

Zach Chadwick BASF is a German chemicals company; the largest in the world based on sales volume. As a company, few analysts would disagree that BASF has performed impressively over the last 5 years. Since 2006 it has seen a surge in its capex, accompanied by a rise in share price. And its recovery post…

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Petrofac Construction Issues

Samuel Wilkins Petrofac is a global provider of oilfield services to the oil and gas industry, with a thriving construction element within their business; who claim to provide some of the largest and most technically challenging plants in the industry. They have previously specialised in building floating production platforms to plants that work efficiently in…

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Islamic Finance: Expanding the traditional capital markets

Miles Richardson   Sukuk: An Islamic financial certificate, similar to a bond in Western finance, that complies with Sharia, Islamic religious law. Because the traditional Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, who then rents it back to the issuer for a predetermined…

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Tech Startups

Andreas Athanasopoulos Technology startups have revolutionised the way a company is founded. In every introductory economics class we learn that oligopolies can be detrimental due to high barriers to entry. Such barriers usually include high capital requirements or advertising costs. However, venture capitalists, the internet and social media sites have allowed new tech start-ups to…

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Tug of War: Heathrow and Gatwick

Anupurba Roy It is an odd contradiction that London’s Heathrow Airport, which is one of the busiest in the world, is also one of the smallest. In terms of area Heathrow ranks 25th in the world, far behind airports with significantly lesser traffic. The airport has been operating at full capacity for years. Simmilarly, London’s…

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Oil prices: possible implications for consumer spending

Peter Elkin The question often raised in recent months is how will the combination of massively reduced oil prices and stagnant inflation effect consumer spending patterns? Chancellor George Osborne took to twitter in early January stating; the ‘Oil price was $53 pbl last night – lowest in 5yrs, vital this is passed on to families…

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EU QE: Is it the answer?

Mario Draghi, ECB president announced, on the 22nd of January, the €1.1 trillion asset-purchase program, which has sent the euro tumbling against the dollar to its lowest level for a decade. The recently announced QE program has been shrouded in controversy, with many believing that the unconventional monetary policy doesn’t provide an effective solution. Concerns…

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Pfizer Split?

Pedro Yaguez-Bovio Pfizer is the world’s largest drugmaker with sales of nearly $50 billion in 2014. Pfizer’s management is currently changing the structure of the corporation in a move which could have big impacts for investors. Pfizer has long-term issues related to the expiration of patents for profitable drugs such as Celebrex and Lipitor. However…

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Germany’s Green Goals

Matthew Potts Germany’s influence on the international stage is becoming ever more crucial. With current tensions within the Eurozone over the combative stance from the Greeks regarding the Troika’s bailout programme, the German government is poised to determine the fate of the currency. However, just as intriguing, and important, is the nation’s current domestic energy…

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