Finance set to surpass tech as most-profitable U.S. industry

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July 18, 2013 by apicomely

Barclays poaches JP Morgan’s Morzaria as new finance chief

This will allow them an eight-month period to look for re-employment while receiving 75% of their salary. If by the end of that period they have not found work in a different department, they could lose their job. A total of 15,000 are expected to be out of work by the end of 2014 to comply with the requirements of Greece’s lenders, the International Monetary Fund, European Union and European Central Bank, which are asking for a slimming down of Greece’s inflated public sector. But for ordinary Greeks, who are facing unprecedented unemployment raging above 27%, the fear is that if they lose their job, they will not be able to find another in the Greek market. There were protesters outside the parliament building late into the night while the vote was taking place.

Even including financial services, profit growth of the S&P 500 companies is expected to come in at a tepid 0.4%. But even that’s better than the outlook for tech-sector profits, which are expected to drop 8.3% in the second quarter, according to Zacks, following a drop of 4.2% in the first quarter. Technology also has been hurt by a sharp drop in PC sales, which have depressed earnings at giants such as Dell and Hewlett-Packard, as well as at their component suppliers, including chip giant Intel. Despite all the gloom profits in the tech sector are expected to fall 6.3% in the first half Wall Street analysts still remain optimistic regarding its prospects this year.

Municipality employees demonstrate in front of the Greek Parliament during a vote on more austerity measures.

Barclays has pledged to improve relations with regulators and raise standards at the bank, shortcomings exposed when it was fined $450 million in June 2012 for rigging the Libor global benchmark interest rate. Its capital strength is also under scrutiny. It is in talks with the Bank of England over how to reduce leverage after being warned last month it had to do so. Barclays said that could force it to cut lending to British households and firms, but the central bank said it would not allow that.

Newsmaker: Egypt’s new finance minister faces daunting task

“Dr Galal describes himself as an ‘eclectic’ economist. He has been a long and firm believer in the importance of inclusive growth and education in contributing to inclusion and competitiveness,” said Amina Ghanem, a former deputy finance minister. “Fiscal policy for him would not be a budget deficit number, it would be about growth, empowerment and human development,” said Ghanem, who served under four finance ministers until shortly before Mohamed Mursi was elected president in mid-2012. The army ousted Mursi, Egypt’s first freely elected leader, on July 3 after millions of Egyptians poured into the streets to protest against the Islamist president and his government. Galal received a doctorate in economics from Boston University in 1986 after graduating in business administration from Cairo University.

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