Monthly Archives: June 2017

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    ‘Flash Crash’: The first market crash in the era of algorithms and automated trading

‘Flash Crash’: The first market crash in the era of algorithms and automated trading

On 6 May 2010, US financial markets experienced a systemic intraday event that has come to be known as the “Flash Crash.”[i] The large and temporary decline in prices and the corresponding increase in trading volume in the S&P 500 E-mini Futures on 6 May is depicted in the figure below. During this extreme volatility event, which took about […]

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    The Fix: How Bankers Lied, Cheated and Colluded to Rig the World’s Most Important Number – Book Review

The Fix: How Bankers Lied, Cheated and Colluded to Rig the World’s Most Important Number – Book Review

The Fix: How Bankers Lied, Cheated and Colluded to Rig the World’s Most Important Number. Liam Vaughan and Gavin Finch. Wiley. 2017. 

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The Fix: How Bankers Lied, Cheated and Colluded to Rig the World’s Most Important Number, written like an engagingly unravelling detective story, is definitely worth the read. It offers a multidimensional journalistic account of the Libor […]

What the European Commission missed in its reflection paper

The European Commission’s recent reflection paper on deepening economic and monetary union raises several key questions about the past and future of the Eurozone. The paper certainly represents a positive contribution to the ongoing process of European integration, after the impasse caused by the deep and prolonged economic crisis, the political developments in some European countries (including the Brexit referendum) and […]

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    Why the pressure for higher minimum wages is gaining traction in Africa

Why the pressure for higher minimum wages is gaining traction in Africa

On 1 May this year, while observing Labour Day celebrations, Kenya’s President, Uhuru Kenyatta, announced an 18 per cent hike in the minimum wage, the country’s most ambitious raise in just about a decade and one that scaled up the minimum wage to Kes 20,296 – about US$ 196.8. (Computation based on the gazetted minimum wage for Nairobi, Mombasa […]

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    Why do supply chains technologies sometimes fail to improve a firm’s performance?

Why do supply chains technologies sometimes fail to improve a firm’s performance?

Many technologies typically referred to as supply chain technologies (SCT) are increasingly being adopted by firms to manage their supply chains. The underlying premise is that they can help improve communication among supply chain partners, which will enhance supply chain efficiency, thus creating value for shareholders. However, in spite of the potential benefits of SCT, these technologies are not […]

Economic shocks affect how a CEO is evaluated

Between May and December 2008, Western Digital, one of the largest computer hard disk manufacturers in the world, experienced a severe shock*. Its stock price fell from $37.53 to $11.45. In 2009, the company reported in its proxy statement that it used discretion, as opposed to objective performance metrics, for evaluating its CEO. In 2008, it had not used […]

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    Using big data to transform operations management: Hype, hope or has-been?

Using big data to transform operations management: Hype, hope or has-been?

The impact of technological innovation is a hot topic in the 21st century. Debates around Big Data (BD) and the technology revolution keep trending. Ignoring the scale of the social changes and organisational disruption created by the apparently exponential growth of technology and the information that has become available to individuals and organisations is impossible. Of particular interest to business […]

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    Why have the gender divisions of work and care been so slow to change?

Why have the gender divisions of work and care been so slow to change?

Changing gender relations has meant that young people increasingly expect to share paid work and care in their relationships. Yet there is continued evidence of ‘gender fates’. This can be seen in fewer girls than boys choosing STEM subjects at school, the dominance of men in trades occupations and women in early childhood roles, the predominance of women choosing […]

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    The Equality Effect: Improving Life for Everyone – Book Review

The Equality Effect: Improving Life for Everyone – Book Review

The Equality Effect: Improving Life for Everyone. Danny Dorling. New Internationalist. 2017.

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In The Equality Effect: Improving Life for Everyone, Danny Dorling takes a renewed look at the growing evidence that has amassed on the stark and clear differences between equal and unequal societies in the ten years since Kate Pickett and Richard Wilkinson published the groundbreaking book, […]

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    The role of foreign investors in the London residential market

The role of foreign investors in the London residential market

LSE London have just completed a study of the role of overseas investors in the London residential market for the Greater London Authority, looking at the proportion of new homes sold to buyers who live abroad and at the proportion of those homes left empty; and the contribution of overseas sales and finance to new development. They found that:

Significant proportions of […]

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    ‘WealthTech’: The challenges facing the wealth management industry

‘WealthTech’: The challenges facing the wealth management industry

Technology is changing society more than ever before. The way we shop, socialise and communicate have all changed radically over our lifetimes. The financial services industry is in many ways behind the curve, with many product lines unchanged in decades. We are likely to enter an online and digital age and many firms are yet to adapt to the […]

On family leave, companies ‘step up’ to fill the vacuum

Google the phrase “lean in,” and almost the first thing that pops up is Sheryl Sandberg’s name. No surprise there, since the Facebook COO wrote a 2013 best-seller with that title urging women to accept no limits on their talents or ambitions.

In February, Sandberg offered up another two-word exhortation: “step up.” This one was aimed at companies like the […]

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    Without an agreed legal definition of protectionism, we can’t measure it

Without an agreed legal definition of protectionism, we can’t measure it

One word was conspicuous by its absence in the communiques on trade that came out of three meetings this year of the world’s finance chiefs. The G20 finance ministers, the International Monetary and Financial Committee and the G7 finance ministers all used the same sentence when it came to trade: “We are working to strengthen the contribution of trade […]

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    A tentative, ‘me-too’ approach to industrial strategy will lead us nowhere

A tentative, ‘me-too’ approach to industrial strategy will lead us nowhere

In some ways, the ambition to have a successful industrial strategy is like the ambition to have a perfect body. Most people are shy about admitting it. In the UK’s case, there is an additional problem; we are addicted to good news, whether it is real or fake. For example, despite having no supporting evidence, Brexit has been widely […]

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    Even holding the same job title, men and women play different roles at work

Even holding the same job title, men and women play different roles at work

During the second half of the 20th century, our understanding was that one of the primary drivers of the gender wage-gap came from the type of careers that women chose to pursue. There was an assumption that as more women would enter the ranks of traditionally male occupations, we would observe a gradual decrease in the gap.

Thankfully, the gender […]

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    Time to acknowledge the role of consumers in responsible innovation

Time to acknowledge the role of consumers in responsible innovation

In light of multiple (social, economic, ecological) problems humanity is facing, it is no surprise that scholarly interest in responsible innovation (or responsible research and innovation) has gained momentum. In other words, more and more of our fellow ivory tower inhabitants are working on aligning research and innovation better with society’s needs, values, and problems (there is also an […]

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    Some tech devices try but fail to make us minimize our carbon footprint

Some tech devices try but fail to make us minimize our carbon footprint

For a couple of weeks now, I am the proud owner of a wireless wrist device that tracks my physical activity, heart rate and sleep. It gives me real-time feedback and nudges me towards a healthier behaviour. Along with the device comes an app that allows me to monitor my weight, calorie- and water intake. The app further provides a […]

The pharmaceutical industry is at risk from Brexit

Despite numerous debates about the impact of Brexit, the pharmaceutical industry seems to be less eye-catching than other sectors like the manufacturing supply chain and financial services. However, pharmaceuticals are one of the EU’s most important and fastest-growing industries, and they benefit greatly from EU integration.

The pharmaceutical sector in the EU has increased from €125 billion to €225 billion […]

Platform Capitalism – Book Review

Platform Capitalism. Nick Srnicek. Polity Press. 2017.

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How do we make sense of the rise of platform-based businesses that are increasingly monopolising the global economy? How did they grow and morph so rapidly? What are the consequences of this business trend? And are there any alternative possibilities as we contemplate a post-capitalist future?

Platform Capitalism addresses these questions through […]

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    Investment banks are already leaving London. Other jobs will follow

Investment banks are already leaving London. Other jobs will follow

In May 2017, new available jobs in London’s financial sector fell by 16% relative to the same period the previous year. And while Frankfurt and Dublin are emerging as the favourite destinations after Brexit in terms of attracting investment banking jobs, Warsaw is also becoming a destination. The announcements of actual or planned reassignments add up to a potential 17,000 jobs leaving London, out […]