Deutsche Bank has become the first global bank to introduce rules that would allow it to claw back staff bonuses earned at previous companies. While the move is unusual and unprecedented, pay consultants say it could turn into a blueprint for rival banks.
The new rules would apply to unvested stock from previous appointments converted into shares of Deutsche Bank and affect only senior bankers who joined the bank in or after January.
Investment banks in London have been forced to offer more competitive salaries to attract this year’s top graduates who industry players say have been deterred by the recent banking scandals.
In an attempt to lure fresh graduates, top investment banks in London are reportedly boosting starting salaries by approximately 5 percent – on top of the 20 percent premium the banking industry pays its new graduate hires.
New recruits can expect to earn between £45,000 to £50,000 ($71,000 to $79,000) a year at top investment banks.
German tech giant Siemens AG has reached a 330 million euro ($411 million) settlement with Greek authorities for alleged bribery cases dating back to 1997, reported the Daily Telegraph on Monday, with a bulk of the sum expected to go into government infrastructure projects and other investments in the country.
The China Africa Development Fund and the China Development Bank could invest close to a billion dollars to further develop the spread of digital TVs across Africa, reported the China Daily on Monday, with over 1.4 million families in 13 African countries now said to be enjoying the benefits of digital TV after the project was first implemented in 2007.
Indian and Chinese commerce ministers meet in New Delhi today for the ninth instalment of the India-China Joint Economic Group. However, India is expected to raise concerns that China is benefitting more out of their trading relationship that reached $74 billion last year.
While the two countries remain upbeat on their $100 billion bilateral trade target for 2015, this year’s JEG is taking place against a backdrop of seven consecutive months of declining trade volumes.
The number of counterfeit notes detected by private banks in India grew by 23 percent from 2010-2011 to 2011-2012, reported the Reserve Bank of India on Sunday, with the Indian government set to introduce plastic notes across five cities by the end of this year in an effort to reduce forgery and thwart other illegal activities related to fake currency.
The Jackson Hole annual symposium of central bankers will the main economic highlight of the week. Federal Reserve chairman Ben Bernanke is expected to speak on Friday and any hints he may drop could set the tone for markets during the following months.
Monday, August 27
Indian and Chinese trade ministers meet in New Delhi and India is expected to raise the issue of widening trade deficit with China.
Either Hong Kong, Shanghai or Singapore will replace London as the world’s most dominant financial centres by 2022, claimed a survey of 450 U.K.-based bankers on Sunday, with nearly 31 percent of the respondents choosing Singapore as their most favoured location to work.
Faced with crippling debt financing costs, Spain is allegedly in talks with the eurozone over conditions for an international bailout aimed at lowering its sovereign yields. However, formal announcements are not expected to surface until mid-September.
Japanese finance minister Jun Azumi has hinted that his government may renege on a deal to purchase bonds from their South Korean counterparts, reported the Wall Street Journal on Friday, after bilateral tensions erupted earlier this month following South Korean President Lee Myung-bak’s visit to a group of islands claimed by Japan.
