Morning Coffee: The most unwanted bankers in the world. Where the finance world's most desirable recruits gather
How many banking jobs will leave London after Brexit? 10,000? 45,000? Maybe even 75,000 if the UK doesn't get its act together and agree a transition deal with the EU soon. But the honeymoon period appears to be over. For all the red-carpet mentality coming out of smiling lobby groups in Frankfurt, Paris, Madrid, Amsterdam and Luxembourg, not everyone on the ground feels enamoured about the arrival of thousands of bankers from London.
We've written before about how many Dutch people still feel animosity towards bankers after the 2008 financial crisis, but Germans are not particularly pleased about winning the battle for Brexit jobs. Local residents have told Bloomberg that, for all the increased tax income and benefit for the local economy, "Brexit will be very bad for people with a normal income.” Forget importing craft beer, scratch beneath the surface and local people still don't feel that the city is ready for an influx of financial services professionals.
Aside from the shortage of housing, the rush for school places and the best office space, Frankfurt doesn't have enough entertainment. John Cryan, Deutsche's chief executive said that it would need “a dozen additional theaters and a few hundred restaurants” alongside beefing up its infrastructure, says Bloomberg.
It works both ways. Bankers in London are viewing a move to Frankfurt with dread, so much so that the epithet "Yawnfurt" has been spawned in the City. Still, it could have been worse if Brexit had happened in the late 1990s.
"When I moved to Frankfurt, there was only one place in the whole city to drink decent espresso,” Stefano Nardelli, an ECB economist moved to Frankfurt in 1999 told Bloomberg. And while some supermarkets now stay open until midnight, back then “it was impossible to buy groceries after 6 p.m.”
Separately, while hedge funds, investment banks and asset managers bemoan the lack of data science, big data and quant talent, there are a few platforms where expertise one step away from their grip continues to gather. The rise of the so-called "crowd-sourced" hedge funds, relying on an army of people with these backgrounds either plugging away in their spare time or attempting to make a living from it full-time, continues apace. Quantopian, Numerai and Quantiacs are examples of such platforms, where communities gather and often work for free. Quantopian has started to bridge the gap into a more traditional hedge fund, however, having accepted money from external investors including Steve Cohen from Point72 and Andreessen Horowitz. As the FT reports, it's now launched its first hedge fund that allows investors to access all this mass of data science and programming talent. The growth of Quantopian has been rapid, especially this year - when we interviewed its chief investment officer Jonathan Larkin in April, there were 120,000 members - now it has over 160,000 from 190 countries.
John Fawcett, its founder and chief executive, told the FT that the amount of work allocating Steve Cohen's money to some of the top members on the platform "has been like launching a nuclear submarine”.
Two more banks are moving jobs to Poland - including front office roles (Bloomberg)
Goldman's bond trading unit only fell by 26% (Reuters)
Goldman's FICC troubles are largely down to "commodities inventory" (Business Insider)
Morgan Stanley has less reliance on trading revenues than most banks. This balance means it's a lot less lumpy (Gadfly)
Morgan Stanley is now all about wealth management (Forbes)
David Solomon, president of Goldman Sachs, says that communication skills are all-important (Business Insider)
Barclays has made another big hire in M&A. Omar Faruqui, who was latterly head of UK origination at HSBC, is now co-head of UK M&A alongside Derek Shakespeare (Financial News)
Nick Baltas has left UBS to join Goldman Sachs as head of research and development for its systematic trading strategies (STS) group (HFM Week)
Dr Doom's racist remarks: "thank God white people populated America, and not the blacks” (Financial Times)
The secret to a perfect PowerPoint presentation (Financial Times)
Correcting Jamie Dimon on bitcoin (Chain)
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