Latest news with #C.S.Venkatakrishnan
CNBC
22-05-2025
- Business
- CNBC
U.S. tariffs pose a 'real challenge' to Europe, Barclays CEO says
Washington's protectionist trade policies are posing a "real challenge" to European nations as they seek to raise their security contributions, according to Barclays CEO C. S. Venkatakrishnan. "I think Europe has a real challenge in adjusting to tariffs. It's got to find space, fiscal space, to increase defense spending, and it's got to look at consolidation in financial institutions, in within its market," the executive told CNBC's Steve Sedgwick on Thursday. The European Union currently faces a 25% U.S. import tariff on its steel, aluminum and cars and was in April struck with an additional 20% "reciprocal" levy under the White House's fresh wide-spanning trade policies. The latter duty has been temporarily reduced to 10% during a 90-day reprieve that expires in July, paving the way for Washington and the 27-member European bloc to join the negotiations table for a more favorable trade agreement. A deal has yet to be struck, with markets mired in uncertainty and with concerns mounting over the EU's economic growth outlook and potential inflationary and recessionary risks in the world's largest economy. The trade developments affecting the two historically allied nations have cast a shadow on the EU's efforts to overhaul its fiscal policies and galvanize defense spending under the bloc's "ReArm Europe Plan." The volatility has encumbered companies that seek to understand the impact of tariffs and regulation on their business model, Barclays' Venkatakrishnan said. "You can look at the companies that have withdrawn earnings guidance over the year, and those are the industries that are more deeply affected. And there, they might decide — not now, but over time — that there needs to be further consolidation or further rewiring of their business models," he said. "And then activity will increase, and we can help them. And then there are others who are ... taking advantage of the relative calm to continue to expand their businesses." British bank Barclays has had a notable presence stateside since absorbing the investment banking and capital markets businesses of collapsed Wall Street titan Lehman Brothers for $1.75 billion. The lender is navigating calmer seas at home, after Trump unveiled the broad outline of a U.S.-U.K. trade deal earlier this month and Britain scored another major win earlier this week through an agreement to reset its relationship with the EU after departing the bloc in 2020. Still, U.K. Prime Minister Keir Starmer's Labour administration must battle the dragon of surging inflation and public skepticism over Finance Minister Rachel Reeves' planned tax increases. A vocal Reeves supporter, Venkatakrishnan on Thursday said the current government remains "absolutely" on track with its economic steps and outlined the hurdles before the British economy: "We're not seeing consumer distress. We're in fact, seeing conduit continued consumer strength, but it's coming because of people managing their balances and their finances prudently. So economizing. The job market is still strong," he said. "But, as you see, even in the last couple of days, people are worried about inflation. People are worried about cost, whether it's winter fuel bills or whether it's more generalized inflation from tariffs, and the only real answer to that is growth."
The Independent
30-04-2025
- Business
- The Independent
Barclays bank to block trans women from using female toilets
Barclays bank has confirmed it will bar trans women from using women's restrooms, following recent guidance from the Equality and Human Rights Commission (EHRC). The bank's chief executive, C.S. Venkatakrishnan, stated the decision ensures compliance with the law following a Supreme Court ruling defining "woman" by biological sex. The EHRC advised that trans women should not use women's facilities in workplaces or public spaces like shops and hospitals. This guidance also applies to trans men using men's restrooms. However, the EHRC stressed that trans individuals should still have access to appropriate facilities. CS Venkatakrishnan, known within the bank as Venkat, told reporters on a media call after posting quarterly results: 'Following the Supreme Court ruling… we believe that we have to comply with that by not allowing trans women to use female bathrooms. 'We strive in every way to make the appropriate facilities available in a comfortable way for people to use and to provide equality of opportunities and development,' he added. Barclays also ditched the diversity targets at its US business earlier this month after American President Donald Trump issued executive orders cutting federal programmes aimed at supporting women, ethnic minorities, LGBTQ+ people and other traditionally under-represented groups. But Venkat insisted the bank was 'committed' to its principles on equality and equal opportunities. He said: 'There should be an inclusive working environment where everybody should be comfortable and have the best form of personal expression.' Venkat added: 'The Wall Street that I joined was not as diverse as it is today. 'I've been given opportunities throughout my career… I'm a great personal believer in this.' Companies, as well as schools, sports clubs and public services across the UK are among those reviewing their policies following the Supreme Court ruling. The EHRC is working on a more detailed code of practice, which it said it aims to provide to the Government for ministerial approval by June.
Reuters
17-04-2025
- Business
- Reuters
Barclays' Brookfield schmuck insurance may flop
LONDON, April 17 (Reuters Breakingviews) - Barclays (BARC.L), opens new tab has constructed an elaborate schmuck-insurance policy as part of its plan to possibly hive off its payments business. On Thursday, the 40-billion-pound UK bank announced, opens new tab a deal that could give Brookfield Asset Management ( opens new tab 10% of the division in return for the private-capital group's help in growing the unit, as well as the chance to buy 70% more at a yet-to-be-decided valuation in three to seven years. It looks like an overcomplicated way of avoiding seller's remorse, which may backfire in the end. The lender's CEO C.S. Venkatakrishnan, known as Venkat, has been cooking up a sale since at least 2023 and had struggled to attract interest at a hoped-for 2 billion pound valuation, Reuters reported. The idea makes sense in theory. Payments groups often trade at a double-digit multiple of EBITDA - unlike banks, which in Barclays' case trades at a discount to book value. So offloading merchant acquiring units, which accept transactions on behalf of businesses, has been a popular way to unlock hidden value for European lenders. The risk however, as Royal Bank of Scotland discovered after selling WorldPay to buyout groups after the financial crisis, is that the new private-equity owners can make a ton of money in short order, prompting angry questions from the seller's shareholders. In Venkat's case, that's a particularly acute risk since his unit's annual revenue fell by roughly a quarter between 2022 and 2024 to 271 million pounds. Barclays therefore risked selling at the bottom. Venkat's answer is to try and have the best of both worlds. He's bringing in Brookfield to help boost the division with the help of Ron Kalifa, the sector guru and former CEO of WorldPay. Barclays will contribute 400 million pounds, and Brookfield will contribute ideas and expertise. In return for its efforts, the buyout group gets a 10% equity stake after three years and can buy another 70% in three to seven years. Barclays will retain the remaining 20%. For Brookfield, the deal looks something like an option on future M&A, though it would presumably have preferred to buy the business now at a knockdown price. Barclays gets to retain the option of selling at a much higher valuation in several years if the Brookfield-assisted turnaround plan works. It's possible, though, that Venkat's shareholders will still regret the elaborate move. Brookfield has no obvious incentive, aside from the tiny 10% stake, to ramp up the valuation of the business before buying it. The optimal plan, from the private-capital group's perspective, may be to watch things burn for a few years and then step in on the cheap, keeping the future upside for itself. In that scenario, Venkat would have tied up time and scarce capital in a doomed turnaround. Barclays might then regret not pursuing a quick and dirty sale to begin with. Follow @aimeedonnellan, opens new tab on X CONTEXT NEWS Barclays on April 17 agreed a deal with Brookfield Asset Management that could see the private-capital group buy most of the bank's British payments business over several years. The two parties will create a standalone entity for the business, into which Barclays plans to invest approximately 400 million pounds. Brookfield may get 10% of the company in return for its help running the unit, and may within three to seven years acquire an additional 70% stake, leaving Barclays with the remaining 20%. Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.
Yahoo
07-04-2025
- Business
- Yahoo
Top banking chiefs held talks over Trump tariff fallout, sources say
(Reuters) - The CEOs of some of the top global banks, including JPMorgan Chase and Bank of America, held a call on Sunday to discuss the repercussions of the hefty tariffs unveiled by President Donald Trump, sources familiar with the matter said. The call was convened by the Bank Policy Institute, a trade association representing large U.S. lenders, two of the sources said. Barclays CEO C.S. Venkatakrishnan was also among the attendees, according to one source. The rare, behind-the-scenes talk underscores the growing alarm within the financial sector over the economic fallout from the tariffs. Shares of banks, whose fortunes are closely tied to the economy, have been crushed in recent days as investors fear that the turbulence could weaken consumer spending, raise recession risks and slow down capital markets activity. The KBW Bank index has dropped about 15% since the new levies were announced on April 2, which Trump touted as "Liberation Day". Prominent voices in the financial world have raised concerns. JPMorgan CEO Jamie Dimon said tariffs could have lasting negative consequences, while billionaire investor Bill Ackman warned the U.S. might be heading towards "a self-induced, economic nuclear winter". Details of the call were first reported by Sky News earlier in the day. The report said top bosses from Citigroup and HSBC were also present on the call. Spokespeople for the banks did not immediately respond to Reuters' requests for comment.
Reuters
07-04-2025
- Business
- Reuters
Top banking chiefs held talks over Trump tariff fallout, sources say
April 7 (Reuters) - The CEOs of some of the top global banks, including JPMorgan Chase (JPM.N), opens new tab and Bank of America (BAC.N), opens new tab, held a call on Sunday to discuss the repercussions of the hefty tariffs unveiled by President Donald Trump, sources familiar with the matter said. The call was convened by the Bank Policy Institute, a trade association representing large U.S. lenders, two of the sources said. Barclays (BARC.L), opens new tab CEO C.S. Venkatakrishnan was also among the attendees, according to one source. The rare, behind-the-scenes talk underscores the growing alarm within the financial sector over the economic fallout from the tariffs. Shares of banks, whose fortunes are closely tied to the economy, have been crushed in recent days as investors fear that the turbulence could weaken consumer spending, raise recession risks and slow down capital markets activity. The KBW Bank index (.BKX), opens new tab has dropped about 15% since the new levies were announced on April 2, which Trump touted as "Liberation Day". Prominent voices in the financial world have raised concerns. JPMorgan CEO Jamie Dimon said tariffs could have lasting negative consequences, while billionaire investor Bill Ackman warned the U.S. might be heading towards "a self-induced, economic nuclear winter". Details of the call were first reported by Sky News earlier in the day. The report said top bosses from Citigroup (C.N), opens new tab and HSBC (HSBA.L), opens new tab were also present on the call. Spokespeople for the banks did not immediately respond to Reuters' requests for comment.
