Professor Peter Hahn, Dean at The London Institute of Banking & Finance continued his whistle-stop tour of media studios, with two broadcast interviews this week.
Firstly, on Thursday (27th October) Peter appeared on BBC Radio 4’s The Today Programme
to discuss Deutsche Bank and Barclays.
Prompted for his reaction to the surprise announcement that both banks had posted an upturn in profits, Professor Hahn said: “most banks have exceeded poor expectations. It’s positive news, but not great news. Managing expectations is the story of the banking industry right now.”
The interview then focused on the challenges and opportunities the banks face, most notably the 7,000 pieces of legislation that Deutsche Bank is currently facing. Professor Hahn said: “even in the UK we need to think about conduct issues. The dark clouds haven’t gone away, but Barclays’ UK business remains strong, as do their investment operations.”
Meanwhile the following day, on 28 October, Dr Hahn was invited into the Bloomberg studios for a transatlantic television interview
to discuss interest rates.
Asked how we can expect to see interest rates change both in the UK and on the continent, Professor Hahn said that as a country with a trade deficit facing inflation, we have to expect domestic interest rates to rise: “foreign investors won’t fund the deficit for ever, so we have to expect interest rates to rise.” This, he said puts the UK at odds with international markets: “rates will go up while others are going down. However, it is likely they won’t rise too much – perhaps 3-4 per cent – unless the US increases their rates, which might see the UK’s rise even more.”
You can watch the Bloomberg interview in full here
and listen to the BBC interview in full here
(at 01;14:00) interview in full.