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Tuesday, February 2, 2016

HSBC to freeze salaries, hiring in 2016 in battle to cut costs

 
Video: https://youtu.be/Q4V8L-98LVY  

Why Refusing a Pay Cut May Get You Fire?

HSBC Holdings Plc will impose a global hiring and pay freeze as part of its drive to cut as much as $5 billion in costs by the end of 2017.

The measures, which affect the consumer and investment banking businesses, were outlined in a memorandum received by employees on Friday, Gillian James, a spokeswoman for the bank, said Sunday in an e-mailed statement. Europe’s largest bank, which will release full-year earnings on Feb. 22, is mulling whether to move its headquarters away from London, partly because of the tax burden and tougher regulatory scrutiny.

“This is in line with HSBC’s moves to lower operating costs,” said Richard Cao, a Shenzhen-based analyst at Guotai Junan Securities Co. “HSBC can’t escape from the global economic slowdown and worsening asset quality like other global banks.”

HSBC Chief Executive Officer Stuart Gulliver, 56, in June outlined a three-year plan to pare back a sprawling global network by shutting money-losing businesses and eliminate as many as 25,000 jobs as he seeks to boost profitability. Barclays Plc extended a freeze on hiring new staff indefinitely in December, while European lenders including Credit Suisse Group AG and Deutsche Bank AG are cutting thousands of jobs to shore up earnings.

The moves were reported earlier by Reuters.

The shares fell 1.6 percent to 484.25 pence at 10:10 a.m. in London, extending losses this year to about 9.6 percent. They dropped 12 percent in 2015.


Under its three-year plan, the London-based lender is seeking to reduce the number of full-time employees by between 22,000 and 25,000. In the U.K., the bank may eliminate as many as 8,000 jobs.

As part of its focus on more profitable markets, HSBC is reviewing its operations in Lebanon and may exit the Middle Eastern country, people with knowledge of the matter said earlier this month. The bank is closing its Indian private-banking business, people familiar with that move said in November.

HSBC is close to concluding an eight-month review into the best location for its headquarters, with Hong Kong seen as the leading candidate city. The lender is likely to stay based in London due to the vast logistics of relocating, Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc, told Bloomberg Television in January. Aberdeen is one of the British bank’s biggest shareholders.- Bloomberg

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US playing a messy game of provocations in SCS; China build up defense to thwart the provocation

In October, the US guided missile destroyer USS Lassen conducted a "freedom of navigation" operation within 12 nautical miles of China's Meiji and Zhubi reefs.

In December, a United States Air Force B-52 bomber "accidentally" flew within 2 nautical miles of China's Huayang Reef.

On Saturday, the Pentagon announced an "innocent passage" by the guided-missile destroyer USS Curtis Wilbur within 12 nautical miles of China's Zhongjian Island.

On the surface, these are "routine" operations US Senator John McCain says are "normal occurrences" China will have to accept.

Yet this is not a Tom-and-Jerry kind of game where no party gets seriously hurt.

There is real potential danger, because the US challenges to China in the South China Sea are showing a trajectory of escalation.

Zhongjian Island is part of the Xisha Archipelago, where there is no current, active dispute, and hardly part of the issue of the day.

The Pentagon did display some diplomatic sophistication this time, claiming that the USS Curtis Wilbur "challenged attempts by the three claimants-China, Taiwan and Vietnam-to restrict navigation rights and freedoms around the features they claim by policies that require prior permission or notification of transit within territorial seas".

Ignoring the fact this violates the US' recognition of "one China", reaffirmed by US Secretary of State John Kerry on Wednesday, the Pentagon's statement raises legitimate suspicions that it has an agenda to further complicate the South China Sea issue.

As in the rest of the South China Sea, there is no evidence the named "claimants" are attempting to "restrict navigation rights and freedoms". Enlarging the South China Sea issue by extending it to the Xisha Archipelago may be an attempt to drive a wedge between the mainland and Taiwan by dragging the latter into a long dormant and increasingly forgotten "dispute".

The US wants a larger role in the Asia-Pacific. And it is bent on preempting a perceived Chinese challenge.

There is no better way to do this than by making things messier, to make itself "needed" and "wanted".

What China needs and wants is peace, but as the Chinese saying goes, while the tree craves calm, the wind will not abate. Beijing needs to react accordingly, and prepare for all possibilities.

However, the country learned the significance of comprehensive national strength the hard way. It should not be distracted. It should rise above stress responses and stay focused on its development agenda. - China Daily)

Build up defense to thwart US provocation 


China firmly upholds her sovereignty and maritime rights and interests in the South China Sea. [Photo/Xinhua]

The US on Saturday sent one of its naval vessels within 12 nautical miles of the Xisha Islands in the South China Sea. The move, according to the Pentagon, was about "challenging excessive maritime claims that restrict the rights and freedoms of the United States and others." The Chinese side criticized the behavior of a "serious political and military provocation."

Until recently, China-US frictions have been fixed on the Nansha Islands. The latest intrusion by US vessels is a high-profile US provocation that has expanded to the Xisha Islands. Xisha is under China's actual control and China has released the territorial sea baseline of the Xisha Islands, including Zhongjian Island. Therefore, the US provocation this time is more vicious.

Currently, China and the US have been focused on making their own moves in the South China Sea disputes. China is building islands in accordance with the law, and the US cannot prevent China from doing so despite strong protests. The US sent warships to provoke, and China protests against it strongly, yet with few effective countermeasures.

It is hard to evaluate the strategic nature of Sino-US confrontations in the South China Sea. China seems to have more room to maneuver, while the US apparently has more control over the overall situation.

Since it happens at the door of China, China feels that the US is circling to contain it and the US vigilance against China is aggressive. There is a long way to go before China can have an equal footing with the US. Such equality can only be achieved with the build-up of strategic strength.

China's military strength still significantly lags behind that of the US. If the US is ready for a face-off in the South China Sea, it can quickly gather its military strength despite the far distance.

We also face similar setbacks in the East China Sea. We bear enormous pressure from Washington in our peripheral areas, and the relative backwardness of China's military might is the weakest link in our competition with the US. Chinese people must be clear about the broader strategic significance of this reality.

The US provocation comes ahead of the 2016 two sessions which are scheduled in March. This reminds us that we must retain a high growth rate of military spending in spite of the economic downward trend.

The defense expenditure of a big power must constitute a certain percentage of its overall expense. China's military budget only takes up 2 percent of its GDP, much lower than the US figure of 4 percent. Before we reach the same ratio as the US, we should hold a cautious attitude toward decreasing the defense budget.

China needs to accelerate its speed of building up strategic strike capabilities, including a nuclear second-strike capability. The US provocation will not stop due to Chinese objections. In the short-term future, we will have limited means to counter the US.

It will probably take China a dozen years or longer of military build-up before it faces a different situation in the South China Sea. - Global Times

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Liberating Malay mind: Shed ‘excess baggage’ of privileges !

 Malays must shed ‘excess baggage’ of privileges, says Rafidah 


SHAH ALAM: The Malays should drop the “excess baggage” hobbling them, such as the thinking that they are “special” and deserving of certain privileges, says Tan Sri Rafidah Aziz.

Instead, she said they should move forward by nurturing themselves with a recalibrated mindset.

Speaking at the launch of a book titled Liberating The Malay Mind by author Dr M. Bakri Musa, Rafidah said that the excess baggage of the Malays included the obsession that the community was special and more privileged than the others, in an ideal that was bolstered since the formation of the New Economic Policy (NEP).

“We (Malays) have been taught that we are special and privileged. But, we must know that the NEP was introduced because we were so far behind in knowledge and economy, and we needed assistance.

“It was not because we deserved it, nor was it that we must have it because the Malays were special,” she said in her speech.

Rafidah said it was a shame that after all these years, the Malays were still imprisoned by the thinking that they were special and deserving of certain privileges.

“It is shameful that we still want the “crutches” although our legs are fine, or still want to depend on the special status when we are able. It is our mindset that is stopping us from moving forward.”

Rafidah called on the Malays to face the future by eradicating the narrow thinking as well as their over admiration on foreign culture.

“All Malays are Muslims in Malay­sia. So, be a Malaysian Muslim. We are not Arabian, we are Malaysian first.

“We must realise that we are an integral component in Malaysia.

“It is necessary for us to nurture the younger generation with good universal values, such as integrity, trustworthiness, responsibility, accountability, discipline and respect for others.

Otherwise, we will be stuck in a time warp and end up going nowhere, she added.

Sources: The Star/Asia News Network

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