BUSINESS
Major banks are clamping down on market analysts talking publicly about politics for fear of appearing to take sides, with HSBC taking its main global currencies commentator off air in an intensification of the crackdown.
Major banks are clamping down on market analysts talking publicly about politics for fear of appearing to take sides, with HSBC taking its main global currencies commentator off air in an intensification of the crackdown.
Currency strategists at HSBC's global research division would not be making unsupervised public appearances due to concerns about commenting on political events which have been seen to drive prices, a source at Europe's biggest bank said.
A source at Credit Agricole said strategists at the French bank had been instructed not to talk about the details of the French presidential campaign, which has moved the price of the euro currency.
Other major banks including Citigroup, Barclays and Bank of America already have tight controls in place aimed at keeping comments by strategists politically neutral, but a blanket ban on public appearances is unusual.
David Bloom, who declined to comment, and other currency analysts from the bank would not be appearing on television for some time, the HSBC source said.
As HSBC's chief currency strategist, Bloom was among the most outspoken commentators on the impact on sterling of the British vote to leave the European Union. He correctly forecast a dramatic fall and then dubbed the pound the government's "de facto official opposition" as it sank after the vote last June.
"We are still engaging with the media. Our economists are engaging, our equity strategists are engaging," one source at HSBC said, asking not to be named.
"But politics is something the bank does not want to talk about and currencies are probably the front line of where we could actually be drawn into something that we would want to avoid. This is a temporary thing."
HSBC has enforced a global crackdown on bankers' interactions with the media over the past two years, other sources at the bank told Reuters, including reducing the number of staff approved to talk to the press and requiring bankers to notify public relations whenever they meet with a reporter.
The source said that Bloom and other currency strategists would continue to meet clients and write regular research.
SHAKY GROUND
The HSBC move follows a number of European banks tightening up on how freely currency market analysts are allowed to speak to the media and in public situations in the past three years.
Part of that has been driven by a tightening of regulation after several of the world's biggest banks were fined billions for manipulating the $5 trillion a day global currencies market. Banks are also preparing for changes imposed by Europe's MiFID II banking regulations at the end of this year.
But several banks also told strategists not to comment publicly on the Scottish independence referendum in 2014, and there were widespread limits on how freely analysts could discuss last year's Brexit vote for fear of breaking electoral rules and alienating customers.
French, German, Dutch, and possibly Italian elections are seen as carrying similar risks for the euro this year to the waves of selling that have hit the pound in the past 12 months.
Several other of the top 10 banking names in the global currencies market, including Citi, Deutsche Bank, Barclays and BNP Paribas, declined to comment.
But strategists from several banks said that following the surprise election of U.S. President Donald Trump and last year's Brexit shock it was now standard practice to be told to steer clear of discussing the details of what was positive or negative for markets in the political sphere, for fear of being seen to make unqualified judgements on policy or politics.
"It is very common now for there to be limits," said a strategist with one European bank.
"What the market thinks about (French presidential candidate) Marine Le Pen is not purely about economics, it's about the broader political risks, which then might play out in demand, growth and so on. Am I qualified to talk about that?" the strategist added.
"Is it really clear what is moving the market? It is obviously shaky ground."
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
IND vs NZ, 2nd Test Dream11 prediction: Fantasy cricket tips for India vs New Zealand match
How To Prepare For The UPSC CSE 2025 Exam?
'India supports dialogue and diplomacy, not war': PM Modi at BRICS Summit
This woman lost in Dubai's desert orders camel via Uber, netizens say 'your camel has arrived'
Good news for Vijay Shekhar Sharma, Paytm gets NPCI nod to..., shares surge over 7%
Fan requests Rohit Sharma to deliver her message to Virat Kohli, here's how Indian captain responded
Rajkummar Rao recalls being scammed in Delhi during struggle days: 'The man had...'
Robbers pose as customers in jewellery shop, what owner did next will leave you shocked
Maharashtra Elections 2024: NCP releases 1st list of 38 candidates; Ajit Pawar to contest from…
Japanese Shah Rukh Khan leaves Bollywood Badshah's fan impressed, social media says...
Will KL Rahul be retained by LSG ahead of IPL Auction? New report provides BIG update, it says...
'Wayanad will have two MPs': Rahul Gandhi after Priyanka files nomination for bypolls
I Want To Talk teaser: Abhishek Bachchan announces his next with Shoojit Sircar, to release on...
Diwali 2024: When is Deepawali, October 31 or November 1? Check dates, mahurat timings and more
JEE Main 2025 exam date to release TODAY: Know how to register, check exam calendar HERE
Jhalmuri fever hits London: Video of British man selling Kolkata-style street food goes viral, watch
SC slams Centre as Delhi air worsens, calls environment laws...
Ex-cricketer suggests replacing KL Rahul with THIS batsman for 2nd Test vs NZ, he is…
TMC MP Kalyan Banerjee smashes bottle, hurls it towards Chair in row over Waqf meet
Know how Mukesh Ambani and Nita Ambani's children Isha Ambani and Akash Ambani got their names
Family finds venomous snakes under their bed, what happened next will leave you in shock
This company's Vice President gets fired after raise and bonus, reason will leave you shocked
Mukesh Ambani-led Jio Financial eyes JVs with Allianz SE in insurance sector
IMD's BIG update: Cyclone Dana forms over Bay of Bengal, to cross Odisha-Bengal coasts on...
This company gifts cars as Diwali bonus, calls its employees celebrities, is owned by…
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan skips her family gathering
When Ratan Tata opened up about his parents separation, first love and childhood, he said...
Blow to Mukesh Ambani ahead of Isha Ambani, Akash Ambani's birthday, Reliance stocks...
Saudi Arabia's futuristic megacity project Neom a big threat to migratory birds? Experts say...
Apple CEO Tim Cook didn’t know about this iPhone feature, left speechless, know here
Mukesh Ambani's Reliance Jio offers superhit Diwali plan, unlimited 5G internet for just Rs...
Bengaluru Rains: Schools closed, WFH advisory for private companies as IMD issues yellow alert
Israel confirms killing of Hashem Safieddine, presumed successor of Hezbollah chief Hassan Nasrallah
Big move by Anil Ambani, his company to invest Rs 10000 crore to set up India's largest...
Meet Indian genius, who was born in small town, today leads AI innovations of Google, she is...
Woman stays at luxury resort worth Rs 3 lakh for free, claims she used...
Delhi AQI update: Air quality worsens to 'very poor' level at 349, becomes 'severe' in these areas
PM Modi to hold bilateral talks with Xi Jinping at BRICS Summit today
Odisha, West Bengal brace for Cyclone Dana: How was it named and what it means?
POCSO case: Mumbai Police ask Ekta Kapoor, her mother to appear for questioning tomorrow
Watch: Can you identify all the actors in this clip from 1991?
Priyanka Gandhi to file nomination for Wayanad Lok Sabha bypoll today
Meet woman, whose father used to sell milk, cracked UPSC exam with AIR 62 to become...
Delhi: No water supply in Capital for 12 hours on Friday due to…; check list of affected areas
Salman Khan resumes shooting for Sikandar amid death threats from Lawrence Bishnoi
India, Pakistan extend Kartarpur Sahib corridor agreement for five years
DNA TV Show: What is BRICS currency? Is it possible to introduce it today?
IPL 2025: Three-time IPL champion set to join Gujarat Titans as batting coach - Reports
PM Modi, Xi Jinping to hold bilateral meet on sidelines of BRICS Summit on Oct 23, first in 5 years
New Himalayan snake species named after Academy Award winner Leonardo DiCaprio, it will be called…
Cyclone Dana: Schools closed in West Bengal, Odisha for 4 days from...
Delhi govt to provide special assistance of Rs 5000 monthly to...
Rape-accused Hollywood producer Harvey Weinstein diagnosed with bone marrow cancer
IND vs NZ: Sarfaraz Khan or KL Rahul; Who will find a spot in 2nd Test? India coach says…
Mumbai Police interrogates Ekta Kapoor, her mother Shobha Kapoor in case under POCSO act
Mukesh Ambani may team up with govt to sell food products through...
Bengaluru: Several feared trapped as under-construction building collapses
Best Cheap VPS Hosting Providers: Top Picks for Hosting Under USD 10
Zomato CEO Deepinder Goyal set to raise Rs 8500 crore, says it is meant to...