Latest news with #capitalcontrols
Yahoo
07-07-2025
- Business
- Yahoo
Labour is acting like communist China, says Lloyds Bank chief
The chief executive of Lloyds Bank has compared Labour's pension plans to policies used by communist China. Charlie Nunn said new powers allowing Rachel Reeves to force pension funds to invest in Britain were akin to capital controls used by Beijing. Mr Nunn told the Financial Times: 'Mandating allocations of pension funds is a form of capital control. I have spent 10 years of my working life in China and many jurisdictions where there are capital controls. 'That is a different model and that is a difficult slope for an economy that believes it is an open economy.' The Chancellor has been pushing for fund managers to put more pension savings into UK 'private assets', such as venture capital and infrastructure, to boost investment into Britain and economic growth. As part of this drive, the Treasury has said it will create a 'backstop' power in new pensions legislation that will allow Ms Reeves to force pension funds to invest more in Britain if they fail to do so voluntarily. Mr Nunn has warned that compelling fund managers to put pensioners' savings into UK assets would 'conflict' with their duty to seek the best returns. Benoit Hudon, chief executive of Mercer UK, one of Britain's leading pensions advisers, similarly warned in May that mandating fund managers put pensioners' savings into unlisted UK assets could backfire. He said at the time: 'The ultimate result of a mandate may be lower returns for pensioners and poorer pensioners in the country – which goes completely against the fundamental objective of this proposal.' Amanda Blanc, the boss of Aviva, has also raised concerns about the proposals. She said in May: 'We think the red line is mandation. We do not believe that is a necessary strategy.' Mr Nunn said Lloyds, Britain's biggest retail bank, already had around £35bn invested in UK assets. His remarks come as the Chancellor prepares to make her Mansion House speech next week, in which she will outline her strategy for the financial services sector. The speech is expected to include an overhaul of Britain's pensions system, including workplace auto-enrolment rates. As part of the Government's push to shift more investment into the UK, 17 of Britain's biggest pension providers have signed a deal to invest 10pc of pension savings in private assets by 2030, with half in the UK. The commitment is expected to deliver a £50bn boost to the UK. Notably, Scottish Widows, which is part of Lloyds Bank, decided not to sign the deal, known as the Mansion House Accord. Those signing up included Mercer UK, Aviva, Legal & General, Aegon UK, Aon and M&G. A Treasury spokesman said: 'Creating pension megafunds will unlock billions for the UK economy, supporting businesses to grow and creating well-paid jobs across the country that put more money into people's pockets. 'Pension funds have committed to private market investment targets voluntarily, due to the potentially higher returns and security for savers through diversified asset holdings that they offer, and scale-up businesses have welcomed these reforms.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Telegraph
07-07-2025
- Business
- Telegraph
Labour is acting like communist China, says Lloyds Bank chief
The chief executive of Lloyds Bank has compared Labour's pension plans to policies used by communist China. Charlie Nunn said new powers allowing Rachel Reeves to force pension funds to invest in Britain were akin to capital controls used by Beijing. Mr Nunn told the Financial Times: 'Mandating allocations of pension funds is a form of capital control. I have spent 10 years of my working life in China and many jurisdictions where there are capital controls. 'That is a different model and that is a difficult slope for an economy that believes it is an open economy.' The Chancellor has been pushing for fund managers to put more pension savings into UK 'private assets', such as venture capital and infrastructure, to boost investment into Britain and economic growth. As part of this drive, the Treasury has said it will create a 'backstop' power in new pensions legislation that will allow Ms Reeves to force pension funds to invest more in Britain if they fail to do so voluntarily. Mr Nunn has warned that compelling fund managers to put pensioners' savings into UK assets would 'conflict' with their duty to seek the best returns. Benoit Hudon, chief executive of Mercer UK, one of Britain's leading pensions advisers, similarly warned in May that mandating fund managers put pensioners' savings into unlisted UK assets could backfire. He said at the time: 'The ultimate result of a mandate may be lower returns for pensioners and poorer pensioners in the country – which goes completely against the fundamental objective of this proposal.' Amanda Blanc, the boss of Aviva, has also raised concerns about the proposals. She said in May: 'We think the red line is mandation. We do not believe that is a necessary strategy.' Mr Nunn said Lloyds, Britain's biggest retail bank, already had around £35bn invested in UK assets. His remarks come as the Chancellor prepares to make her Mansion House speech next week, in which she will outline her strategy for the financial services sector. The speech is expected to include an overhaul of Britain's pensions system, including workplace auto-enrolment rates. As part of the Government's push to shift more investment into the UK, 17 of Britain's biggest pension providers have signed a deal to invest 10pc of pension savings in private assets by 2030, with half in the UK. The commitment is expected to deliver a £50bn boost to the UK. Notably, Scottish Widows, which is part of Lloyds Bank, decided not to sign the deal, known as the Mansion House Accord. Those signing up included Mercer UK, Aviva, Legal & General, Aegon UK, Aon and M&G.
Bloomberg
02-07-2025
- Business
- Bloomberg
Milei's Foreign-Exchange Shakeup Has Brokers Moving Into Banking
Argentina's brokerages are restructuring after President Javier Milei took away lucrative arbitrage opportunities that juiced their business when he rolled back capital controls. With more than 280 brokers operating in the Latin American country — a figure unmatched anywhere else in the region, according to local regulator CNV — competition has always been fierce. It's even more so now that exploiting the gap between the official and parallel exchange rates doesn't generate as much profit, and that banks can sell dollars now, too. By comparison, that far exceeds the number of brokers in Brazil, Mexico, Chile and Peru.
Bloomberg
03-06-2025
- Business
- Bloomberg
Full Implementation of 899 Not Being Priced In: Allianz
00:00 Eight, nine nine is for me exactly what people don't spend enough time on. Everybody's looking at trade, which is the tip of the iceberg. But there is below this momentum around capital controls in the US in different forms. And one of the form is indeed these increased tax rates for foreign corporations operating in the US and more generally frictions frothy capital flows between the US and the rest of the world. I don't think markets are pricing in today a full implementation of six and 899. So that could actually spook markets, obviously, because a lot of people I talked about the hedge being the naming time today, but a lot of people are also looking at cross-border exposure at large. So beyond hedges, you know, when you a European investor, you look again at, okay, there is the dollar depreciation, There is indeed. You know, yields in the US are a bit under duress and there is this additional taxation. Would you go long term in the US and when you are President Trump and the whole policy continuum is about making sure that people do long term investing in the US, Do you really want to support that part? So I think the market is to say that he's going to withdraw on this because that could actually completely annihilates what he's trying to do on, you know, his policy agenda. But if he were to move on with that policy, I think that could create a big, scary moment, especially on the equity market and also, again, on the bond market. And so that is not factored in today because a lot of investors are not thinking that it could go through, as you know, explain today bit. Okay. So so if that is if that does add up to a big scary moment of what would pricing in that big scary moment look like a sell off in stocks you suggested. But how high for yields and and how weak for the dollar. I think section 899, we're talking about a sell off around 10% yields that could go up around half a point. And then the dollar that could go down another 5%. So it's quite a huge.
Crypto Insight
16-05-2025
- Business
- Crypto Insight
Bitcoin to $1M by 2028 as Hayes tells Europe to 'get your money out'
Key points: US Treasurys and foreign capital 'repatriation' make a recipe for $1 million BTC, says Arthur Hayes. Europeans face tightening capital controls, inviting a recommendation to take back control of personal funds. Seven-figure BTC price targets are already gaining traction. Bitcoin will shoot to $1 million in just three years, thanks to global macroeconomic shifts, Arthur Hayes forecasts. In his latest blog post released on May 15, the former CEO of crypto exchange BitMEX doubled down on his sky-high BTC price prediction. Hayes: $1 million Bitcoin due 'between now and 2028' Bitcoin has two strong tailwinds that will help propel it to seven digits in a few years. For Hayes, shifting capital controls worldwide and US Treasury 'devaluation' means that Bitcoin will become the go-to safety net for investors everywhere. He summarized: 'Foreign capital repatriation and the devaluation of the gargantuan stock of US Treasurys will be the two catalysts that will power Bitcoin to $1 million sometime between now and 2028.' While that date may appear arbitrary and demand 900% BTC price gains, Hayes argued that the financial landscape could change in an instant, depending on the next US governmental administration. 'I say 2028, because that is when the next US presidential election occurs and who knows what type of politician will win and what policies they will enact,' he said. While the presidency of Donald Trump has enacted various pro-crypto policies, this could begin to reverse if a shift in government were to occur. In Europe, meanwhile, an increasing desire to control and even suppress crypto use by the general population signals a growing divergence. 'Not even China has banned the private ownership of Bitcoin because it knows it's counterproductive and impossible,' Hayes wrote. 'For you Euro-poor-peans, whose governments practice a less effective form of communism than China, don't expect the European Central Bank (ECB) to learn this lesson without trying. Therefore, get your money out now!' Betting on a seven-figure breakout As Cointelegraph reported, Hayes has not been shy about predicting both short-term and longer-term BTC price expansion in the years to come. In April, he foresaw the return to $100,000, and before that, joined those seeing the mid-$70,000 zone as a likely local bottom. Multimillion-dollar targets for the next decade include those of major financial players such as Fidelity Investments. Michael Saylor, CEO of business intelligence firm Strategy, which has the world's largest Bitcoin treasury of any public company, said this week that he envisaged a $10 trillion valuation. 'My forecast for 2045 is 13 million a Bitcoin,' he added. Source:
