David Cameron Unveils Plans to Make London a Mecca for Middle East Wealth

THE INDEPENDENT: Prime Minister hopes London can tap into the rapidly expanding global market in Islamic investments

David Cameron has announced plans to encourage investment in the UK by Muslim countries, saying he wants to make London “one of the greatest centres for Islamic finance anywhere in the world”.

Politicians and business leaders gathered in the capital for the ninth annual World Islamic Economic Forum – the first time the major event has not been held in a Muslim country.

The Prime Minister appeared on stage alongside a number of world leaders, including King Abdullah of Jordan and the Sultan of Brunei.

Among the measures unveiled was a plan from the Treasury to issue an Islamic bond - or sukuk - worth around £200 million. It would issue fixed returns based on the profit made by a named asset, allowing for Muslims to invest without breaking Islamic laws forbidding interest-bearing bonds.

A “world first” set of indices at the London Stock Exchange to help investors identify faith-compliant firms and projects was also announced as well as a £4.5 million boost to a small business growth fund.

The global market in Islamic investments is rapidly expanding, rising by 150 per cent since 2006 and expected to be worth £1.3 trillion next year.

Mr Cameron said Britain had already taken steps to ensure Muslims were not discriminated against - such as ending “double tax” on Islamic mortgages and introducing alternative forms of student and start-up loans to comply with a ban on interest payments.

It already had more Islam-compliant banks than any other Western country and many law firms and university courses centred on the subject, he said.

But he said that his ambition was for the country to compete with finance centres such as Dubai and Kuala Lumpur - not just other non-Islamic capitals. Read on and comment » | Adam Withnall | Additional reporting by PA | Tuesday, October 28, 2013

Islamic Investment: David Cameron Moves to Make London a Mecca for Middle East Wealth

The Shard, the tallest building in Europe

THE INDEPENDENT: Moves to turn London into a leading centre of Islamic finance will be announced by David Cameron today amid soaring Middle East investment in Britain and around the world.

The Prime Minister will signal his determination to tap into the rapidly growing global market for Islamic investments, which are forecast to reach £1.3 trillion next year as oil-rich states fund major building projects.

He will set out plans to establish a new Islamic index on the London Stock Exchange, which will help investors comply with Islamic finance principles, such as bans on investing in alcohol, tobacco and gambling. He will also detail proposals for Britain to become the first country outside the Muslim world to issue its own Islamic bonds, known as sukuk. » | Nigel Morris | Tuesday, October 29, 2013

Britain to Become First Non-Muslim Country to Launch Sharia Bond

THE DAILY TELEGRAPH: David Cameron to unveil £200m Sukuk at the World Islamic Economic Forum in London on Tuesday

Britain is set to become the first non-Muslim country to sell a bond that can be bought by Islamic investors in a bid to encourage massive new investment into the City.

David Cameron will say in a speech on Tuesday at the World Islamic Economic Forum in London that the Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law.

The new sharia-compliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments that is forecast to top £1.3 trillion by next year.

The Prime Minister will say that it would be a “mistake” to miss the opportunity to encourage more Islamic investment in the UK and that the City of London should rival Dubai as a centre for sharia-compliant finance.

“When Islamic finance is growing 50pc faster than traditional banking and when global Islamic investments are set to grow to £1.3 trillion by 2014, we want to make sure a big proportion of that new investment is made here in Britain,” Mr Cameron will tell an audience of senior officials from Islamic countries.

Among those at the meeting are Sultan Hassanal Bolkiah of Brunei, King Abdullah of Jordan, Afghan president Hamid Karzai and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.

The World Islamic Economic Forum has never been held before in a non-Muslim country and highlights the growing role London is playing in the Islamic finance industry. » | Harry Wilson | Tuesday, October 29, 2013

French Socialist Candidate François Hollande Attempts to Reassure The City

THE DAILY TELEGRAPH: François Hollande, the French Socialist candidate in presidential election held out an olive branch to Britain yesterday, saying it should feel "part of Europe".

But the man most likely to be France's next President warned David Cameron that any attempt to create a "sanctuary" from regulation for the City of London was "not acceptable".

Mr Hollande will visit London on 29 February to speak to the Labour leader, Ed Milliband [sic], and perhaps the Prime Minister.

In a meeting with British and American journalists, he said: "We need a Great Britain that will take its place in Europe."

The polls place Mr Hollande way ahead of Nicolas Sarkozy, the incumbent conservative, who is expected to officially launch his re-election bid this week.

Mr Hollande sent ripples of alarm in the City last month by laying into "big finance", calling London's financial centre his "greatest adversary" in his first major campaign rally.

Yesterday, he warned that Britain could not expect to escape more financial regulation, despite Mr Cameron's decision not to sign the recent European fiscal pact.

"David Cameron's attempt to create a sanctuary from regulation for the City of London is not acceptable," he said. » | Henry Samuel in Paris | Monday, February 13, 2012

We Are Paid Too Much, Bankers Confess in St Paul's Survey
THE INDEPENDENT ON SUNDAY: As politicians shift ground on high earners, City workers admit public sector gets raw deal

British bankers have admitted that they are paid too much, a report into moral standards in the City of London will reveal tomorrow.

A survey of 500 workers in City financial institutions, carried out for the Christian think-tank St Paul's Institute, found that "a substantial number" believed they were overpaid compared with other professions – particularly frontline workers including teachers and, most of all, nurses.

The results will fuel continuing bitterness towards the industry over its culpability for the financial crisis and its apparent failure to rein in huge salaries and bonuses . Last night The Sunday Times reported the publicly owned Royal Bank of Scotland is planning to pay its investment bankers about £500m in bonuses.

The Archbishop of York, Dr John Sentamu, yesterday joined the attack on bankers' pay, claiming excesses in the financial sector had helped to create huge inequalities in wealth, "demonstrating how scandalously unfair our society is". » | MATT THOMAS, BRIAN BRADY | Sunday, November 06, 2011

David Cameron: London Is Under Constant Attack from Europe
THE DAILY TELEGRAPH: The City of London is "under constant attack" from European Union regulations, David Cameron has said.

Speaking on his way to Perth, Australia, for a Commonwealth summit, the Prime Minister also warned against the 17 eurozone nations colluding to undermine the European Union's free market rules.

He said: "London is the centre of financial services in Europe. It's under constant attack through Brussels directives. It's an area of concern, it's a key national interest that we need to defend."

Mr Cameron said that he will fight to prevent closer integration of the Eurozone countries leading to anti-competitive regulations.

"As the 27 we need to make sure that the single market is adequately looked after."
"There are a lot of things the eurozone is doing together. Having more meetings alone, establishing machinery - it raises the question of could there be caucusing [sic]?" » | James Kirkup, Deputy Political editor, in Perth | Friday, October 28, 2011

£4.1bn Bonus Bonanza for Bank Staff
THE INDEPENDENT: Staff at investment banking giant Goldman Sachs earned a mammoth 6.65 billion US dollars (£4.1 billion) in pay and bonuses during a bumper second quarter for the group, it emerged today.

Compensation and benefits were 47 per cent higher to reflect revenues soaring to a record 13.8 billion dollars (£8.5 billion) as improving financial markets buoyed the business.

The bank, which has more than 5,000 staff in the UK, also delivered a 65 per cent rise in second-quarter profits of 3.44 billion US dollars (£2.1 billion) - well above expectations. >>> By Russell Lynch, Press Association | Tuesday, July 14, 2009

Credit Suisse Targets Same Sex in the City
THE TELEGRAPH: Credit Suisse has become the first major bank to target the pink pound with a bespoke private banking service provided by gay advisers.

The Swiss banking giant’s new service will cover all the traditional aspects of private banking, alongside tailored services to deal with events such as civil partnership and adoption.

Credit Suisse said that gay role models - such as Boris Johnson’s chief of staff Nicholas Boles - have helped boost the confidence of the younger gay community - leading to an increased desire to be dealt with by those that understand their lifestyle.

Many of the bank’s rivals, including HSBC, Barclays and UBS, offer no specific service or products for the lesbian, gay, bisexual and transgender (LGBT) community. UBS said that it does not “segregate clients in this way”, while HSBC offers other dedicated services such as a diamond and jewellery arm and a family office within its private banking business.

Stephen Connolly, who is leading the Credit Suisse service, said: “Clients with us have no need to explain their lifestyles or - as we know happens in some cases - almost feel the need to justify the way they choose to live their lives.”

With earnings of £81bn last year, Britain’s 3m-strong gay and lesbian community could provide a lucrative client list for Credit Suisse. As Mr Connolly, 38, points out, the majority have no school fees to contend with, freeing up much of their short-term finances and allowing for greater risk taking and earlier retirements. Credit Suisse Targets Same Sex in the City >>> By Emma Thelwell | Auguat 17, 2008

The Dawning of a New Dark Age – Dust Jacket Hardcover, direct from the publishers (UK) >>>
The Dawning of a New Dark Age – Paperback, direct from the publishers (UK) >>>

A View on Islamic Banking Which Sees All the Benefits But None of the Dangers Inherent in Its Growth Here in the West
FINANCIAL TIMES: A new Islamic bank will be launched in London on Tuesday, reaffirming the City’s status as the leading western financial centre for this fast-growing sector.

Gatehouse Bank is the fifth Islamic bank to be awarded a licence in Britain, demonstrating the resilience of Sharia-compliant finance in spite of the credit crisis that has wiped billions off the balance sheets of conventional banks.

David Testa, chief executive at Gatehouse, said: “Islamic finance is a healthy and growing industry, stimulated primarily from the Gulf, but also from growing interest in south-east Asia, including new centres such as Indonesia.

“Investors in the Middle East are increasingly looking to diversify out of their region and they see London as a key marketplace to help them in this. One of the main reasons why London has become such an important centre for this kind of finance is due to the legislative changes pushed through by the government over the last five years.

“It has brought in new laws to level the playing field with conventional finance and make the City an attractive place to invest in a Sharia-compliant way. For London, what with the problems of Northern Rock and the crackdown on non-doms [non-domiciled foreigners], this really is one area where the City has got it right.”

Britain is the only country in the European Union to have licensed Islamic banks as the government has realised the potential of this market for the City as a financial centre. It has also seen the development of Islamic finance as a way of building bridges with the 2m Muslims who live in the UK.

The UK has also stolen a march on New York, the world’s other leading financial centre, as a hub for Islamic finance, partly because of its timezone and partly because of the antipathy towards this sector in the US following the September 2001 attacks. UK’s Fifth Islamic Bank to Tap Demand Growth >>> By David Oakley, Capital Markets Correspondent | April 21, 2008

The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)

Ministers Say Bonus Culture Has to End
THE TELEGRAPH: Bumper annual cash bonuses for bankers could soon be outlawed after finance ministers from around the world ordered a major overhaul of the industry's pay system.

In a move which may foreshadow new legislation over compensation in the City and Wall Street, ministers meeting in Washington threw their weight behind a report which said banks' generous compensation structure was partly to blame for the credit crisis.

The Financial Stability Forum, a union of regulators from around the world, said the current system - in which bankers are frequently paid million pound-plus bonuses based on their annual performance - needed urgent reform.

Amid a raft of other recommendations, including an overhaul of the way ratings agencies work and a beefing up of the Basel rules on banks' accounts, the FSF said remuneration should be tied to performance over credit cycles, which last five or more years.

This could raise the prospect of bankers having to wait many years for bonuses, or even be forced to forfeit them if the bank's performance later disappoints. Ministers Say Bonus Culture Has to End >>> By Edmund Conway, in Washington | April 14, 2008

The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)

The Party’s Over
THE SUNDAY TELEGRAPH: The businesses that make a living from the Square Mile's high rollers are dreading mass redundancies

As soon as he felt the heavy hand squeeze his shoulder last Tuesday morning, Jonathan, a banker at Royal Bank of Scotland in London, knew he [was] fired. Obediently, he went through the motions - greeted his boss cheerfully, listened the long talk about the decline of the leveraged finance market and the opportunities elsewhere - before shaking hands, returning to his desk and leaving.

He was one of 200 people who were let go by RBS last week as the bank slashed its European leveraged finance, real estate finance and commercial mortgage-backed securities businesses in London - but believes he was one of the lucky ones.

"At least I was expecting it," said Jonathan, who did not want to provide his full name. "We've had a great run, made a lot of money but frankly we've not been busy for a long time. The writing was on the wall. My wife gave up work after our second child was born last summer as the credit crunch started, so I had to plan. We were due to move to Kensington before Christmas but we're staying in Fulham instead and delayed sending our 4-year-old to private pre-prep school for a year. We've also kept the car rather than upgrading, cancelled skiing and didn't book the house in the South of France for the summer. Others I was working with carried on assuming things would pick up, they've got to make all the cuts now. That's more frightening."

Across London's stalling financial services sector, previously indomitable stars are facing up to the new reality of deep job cuts.

The investment banks have so far avoided the ignominy of being the first to announce redundancies yet all have quietly leaked hundreds of staff. In the next few weeks, a big round of cuts are expected. This weekend, new figures from the Centre of Economics and Business Research predict that nearly 30,000 jobs will be slashed over the next few months. Big banks including Goldman Sachs and Merrill Lynch are expecting to cut more next week. Some commentators are expecting far more, perhaps even the worst slump since the early 1990s.

City veterans drone that finance is a cyclical business. Others say it is time that the extraordinary extravagance and hubris of recent years was reined in.

The bumper bonuses paid to the 350,000 financial services workers has been felt across the capital, from a 20 per cent increase in London house prices to record- breaking parties such as the Ark, the hedge fund extravaganza that raised £28m over dinner, and modern art multiplying in value by 10 times.

While some may be scandalised by the decadence, the reality is that rain from the high-rolling financiers has watered the rest of the economy too. Hundreds of businesses have sprung up to service the super-rich. Quintessentially, the concierge service employs 1000 people in 45 offices around the world. The Buying Solution is a whole new arm of Knight Frank to deal with huge demand for country houses worth over £1.5m, Fantastic Fireworks for the parties, Famous Fishing for corporate entertainment, while XX, a specialist baggage handling business, booming. Then there are the holiday companies, car dealerships, clothes retailers, golf clubs, restaurants, bars, private schools and armies of domestic workers employed in London and country homes. UK Economy Faces Tough Times as Credit Crunch Hits Big Spenders in the City >>> By Louise Armitstead | April 13, 2008

The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)