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Goldman Sachs, HSBC Back Cameron Push to Keep Britain in the EU

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HSBC top family office

Chief executive officers from HSBC Holdings Plc to Goldman Sachs International were among the business leaders to endorse Prime Minister David Cameron’s campaign to keep Britain in the European Union.

Richard Gnodde and Michael Sherwood, the London-based co-CEOs of Goldman Sachs Group Inc.’s international division, HSBC’s Stuart Gulliver and Bill Winters of Standard Chartered Plc signed a letter to the Times newspaper saying that staying in the bloc would be best for the British economy. Barclays Plc and Lloyds Banking Group Plc weren’t represented.

Bankers appeared more eager to back Cameron than representatives of other industries, with only 36 of the U.K.’s 100 biggest companies publicly endorsing the statement that “leaving the EU would deter investment, threaten jobs and put the economy at risk.” Grocery chains J. Sainsbury Plc and Tesco Plc were among those not included.

The publication of the letter comes four months to the day until a referendum on so-called Brexit, as Cameron prepares to intensify his campaign after making risks to the economy a central plank of his case for remaining in the EU.

The pound continued its drop against its developed-nation peers on Tuesday following the decision by London Mayor Boris Johnson, Britain’s most popular politician, to support withdrawal from the EU, setting the stage for a heated campaign.

‘Unrestricted Access’

In their letter, the executives said that business needs “unrestricted access to the European market of 500 million people in order to continue to grow, invest and create jobs.”
The signatories, including bosses from Marks and Spencer Group Plc, Vodafone Group Plc and Heathrow Airport Ltd., employ 1.2 million people and represent about 200 companies, the Times said.

“A vote to remain offers the best of both worlds — it secures our place as a powerhouse in the global economy, while remaining in the world’s largest free trade zone,” John Holland-Kaye, the CEO of Heathrow, said in a separate statement on Tuesday.

Other finance chiefs to back Cameron were HSBC Chairman Douglas Flint, Adrian Montague, chairman of Aviva Plc, Xavier Rolet of London Stock Exchange Group Plc and Tidjane Thiam of Credit Suisse Group AG.

Voter Choice

Perhaps worried about alienating consumers, pay-television provider Sky Plc joined Tesco and Sainsbury in not endorsing the letter. The referendum is “a matter for the British people,” Sainsbury said in a statement on Monday.

Barclays said in a statement that, while it didn’t sign up to the letter as it’s against the bank’s policy, “on balance we think it is in the interests of our customers and clients” to stay in the EU.

The financial industry is more likely to be worried about life outside the EU than other business sectors given an exit would jeopardize the so-called passporting arrangements which allow firms to operate from the U.K. without needing a separate subsidiary on the continent.

Mega Banks

In an interview with Bloomberg News published on Tuesday, ING Groep NV Chief Executive Officer Ralph Hamers said the Dutch lender would probably follow other major banks in reducing its London staffing levels if the U.K. left the EU. HSBC has already said it would probably relocate about 1,000 investment bankers to Paris.

“If some of the mega banks, the markets banks, leave London, we will go with the flow,” Hamers said. “Either the circus of the financial markets is located in London or it’s going to be somewhere else.”

Cameron warned lawmakers on Monday that the economy would suffer if the U.K. left the EU and it would be less secure against threats from Russia and terrorism.

Labour Push

The opposition Labour Party will on Tuesday intensify its own push to stay in the EU with former minister Alan Johnson using a speech in western England to argue manufacturing jobs would be threatened by “Brexit.”

“For U.K. manufacturing jobs, our EU membership is absolutely critical — two-thirds of British jobs in manufacturing are dependent on demand from Europe,” Johnson will say, according to his office.

The latest opinion poll, from ICM, showed 42 percent of respondents in favor of staying in the bloc, with 40 percent opposed and 17 percent undecided. The online survey of 2,021 voters was conducted almost entirely before Johnson’s announcement. A Survation poll carried out Saturday showed a 15 percentage-point lead for staying in. That’s in line with other recent phone surveys, which have consistently shown big leads for the status quo, while more frequent online polling has been inconclusive.

Bloomberg

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Government

Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Netanyahu

Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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