HSBC is not plastering Heathrow with its “world’s local bank” tagline anymore, but a Brexit-battered pound and a political swing to the left have spurred internationally minded Brits to snap up its foreign-currency accounts.
Demand for HSBC Currency Accounts (HCAs), which let customers hold cash in foreign currencies in the United Kingdom, spiked 23 per cent in June from the previous month, said the spokesman Ankit Patel. On June 8, the election of the prime minister Theresa May had been expected to win easily resulted in a minority Conservative government after a surprising surge by the Labour Party under Jeremy Corbyn, who has pledged more state intervention and vowed to tax higher earners more heavily. He has since overtaken Mrs May in opinion polls.
"Having seen the calamitous falls you saw immediately post-Brexit, people have woken up to the fact that they have currency risk,” said Rob Burgeman, an investment manager at Brewin Dolphin. As the election loomed, Britons “look and think, we could have prime minister Corbyn here this time next month. It just focused people’s minds on currency risk and political risk: you’re not going to catch us like that again.”
HCAs are offered in 14 currencies, with the vast majority of customers choosing dollars or euros. Year-on-year, the number of new HCAs was 5 per cent higher in the first seven months of 2017, Mr Patel said. The year-earlier period includes June 23, 2016: on that day, Britons shocked pollsters and financial markets by voting to leave the European Union, prompting the pound to plunge to multi-decade lows against the dollar.
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Read more:
Britons spend less and house price growth slows
UK fights rearguard action on EU financial laws before
UK set to 'pay €40 billion' to leave EU
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Unlike the other big UK consumer banks, HSBC operates extensive retail networks abroad, and targets customers with international needs through the HCA and a “global view” product to manage accounts based in other countries. Barclays also offers foreign-currency accounts, but declined to provide figures on recent demand. UK-centric Lloyds said the number of new foreign-currency accounts is little changed.
Fifty-seven per cent of the people who have HCAs are British, HSBC says. Many of the rest were opened by UK-resident foreign nationals, possibly Americans: the bank says there was a surge in demand for accounts around the US presidential election last autumn. The Dollar Index, a measure of the greenback’s strength against other major currencies, rose 7 per cent in the last five months of 2016.
“We see an increase in demand during election periods, because the uncertainty means customers begin to look at the potential impacts on their wealth and how they can minimise this risk,” HSBC said.
More than 80 per cent of HCAs are in dollars or euros. Mr Patel said there was a rush into dollar accounts between August and December 2016. He said the proportion of dollar HCAs jumped to 41 per cent from 35 per cent during that period.
In November, Donald Trump shocked US pundits by taking the presidency, while trailing Hillary Clinton in the popular vote. The US currency soared amid optimism his tax cuts would send cash surging back into the world’s biggest economy.
For people earning pounds, the Trump trade exacerbated the post-Brexit slump in dollar terms. After reaching US$1.50 on optimism for a win by the Remain campaign, the pound bottomed out at $1.18 in October, amid growing concern about a so-called hard Brexit, which would see the UK excluded from the EU’s single market.
_______________
Read more:
UK customs checks seen costing £1 billion
Bank of England likely to cut UK growth forecast
_______________
As Mr Trump’s legislative agenda has stalled, the dollar has weakened recently, with the pound and euro touching 10-month and 30-month highs against the greenback, respectively.
But sterling remains near an eight-year low against the euro as the Brexit talks have begun, trading at about €1.10 per pound versus about €1.30 before the vote. In the weeks after the Brexit vote, HSBC was inundated with requests for HCAs, Bloomberg News reported at the time.
Mr Burgeman said accounts such as HSBC’s are most useful for Britons who have a mortgage on a property outside the country, or are planning on buying a retirement retreat abroad.
“I don’t think people were wildly speculating,” he said.
“It was people who have liabilities, current or future, and want to be able to hedge out some of that.”
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
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Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster with a decades-long career in TV. He has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others. Karam is also the founder of Takreem.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
Facebook | Our website | Instagram
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
COMPANY%20PROFILE%20
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
Points Classification after Stage 1
1. Geraint Thomas (Britain / Team Sky) 20
2. Stefan Kueng (Switzerland / BMC Racing) 17
3. Vasil Kiryienka (Belarus / Team Sky) 15
4. Tony Martin (Germany / Katusha) 13
5. Matteo Trentin (Italy / Quick-Step) 11
6. Chris Froome (Britain / Team Sky) 10
7. Jos van Emden (Netherlands / LottoNL) 9
8. Michal Kwiatkowski (Poland / Team Sky) 8
9. Marcel Kittel (Germany / Quick-Step) 7
10. Edvald Boasson Hagen (Norway / Dimension Data) 6
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
First-round leaderbaord
-5 C Conners (Can)
-3 B Koepka (US), K Bradley (US), V Hovland (Nor), A Wise (US), S Horsfield (Eng), C Davis (Aus);
-2 C Morikawa (US), M Laird (Sco), C Tringale (US)
Selected others: -1 P Casey (Eng), R Fowler (US), T Hatton (Eng)
Level B DeChambeau (US), J Rose (Eng)
1 L Westwood (Eng), J Spieth (US)
3 R McIlroy (NI)
4 D Johnson (US)
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Netherlands v UAE, Twenty20 International series
Saturday, August 3 - First T20i, Amstelveen
Monday, August 5 – Second T20i, Amstelveen
Tuesday, August 6 – Third T20i, Voorburg
Thursday, August 8 – Fourth T20i, Vooryburg
