RSS feed

Robert Peston Business editor

Welcome to Peston’s Picks - the home of my reports and analysis of the issues in business that matter to us all

Greece: Dangerous precedent?

I am on my way to Rome to talk to a taxi driver about the eurozone crisis.

No, not because any rational person would have lost faith in the ability of the European Union's leadership to rebuild confidence in the strained currency union - but to see the impact on livelihoods of attempts by the Italian government to woo investors by modernising the economy, which includes abolishing restrictive practices (including the system for licensing taxis).

Read full article

Lloyds: £2m in bonuses taken back

One of the important reforms insisted on by regulators after the 2008 banking crisis was that bankers should have to give back some of their bonuses, if their bank performed worse than expected.

This is happening for the first time at a British bank - at Lloyds - because of the huge mess it made of mis-selling PPI credit insurance to customers.

Read full article

Barclays, citizenship and bonuses

Barclays' profit before tax of £5.9bn, or £5.6bn on the adjusted measure it prefers, may seem huge.

But it was 3% lower than in 2010. And perhaps more importantly it is less than half what Barclays' executives, led by the chief executive Bob Diamond, think the bank ought to be making - as measured by its return on equity capital.

Read full article

Hester: I, Not Robot

Stephen Hester's interview on Today made it absolutely clear that the chief executive of Royal Bank of Scotland - bruised and battered by political and media attacks on his bonus - came pretty close to resigning.

"I am not a robot" was his resonant description of how he felt on seeing himself turned into a symbol of the alleged excesses of the banking industry. There have been "deeply depressing moments", he said, but "in the end I came to the conclusion it would be indulgent for me to resign".

Read full article

Glencore and Xstrata: a merger of egos

Everything about the merger of Glencore and Xstrata is big.

The market value of the combined mining and commodities group would be $90bn or almost £60bn.Their combined revenues for 2011 would have been $209bn (£132bn) and their profits before interest, depreciation and amortisation (Ebitda, a proxy for cash generated) would have been over £10bn ($16.2bn).

Read full article

Multinationals feel spurned by government

Those who run our biggest multinational companies tell me they've been badly let down by government.

So the prime minister may be feeling a bit bruised a little later today - when he chairs a meeting of his Business Advisory Group - if they say to him directly the kind of things they've been saying to me about him and his colleagues (I assume they'll show deference for his office and tone it down).

Read full article

Hampton: Defending Hester's bonus

Philip Hampton, chairman of RBS, used the "can't-live-with-them, can't-live-without-them" defence of bankers and their big pay today.

As I have mentioned before, he is firmly of the view that investment bankers and banking executives are paid too much - not because he is opposed to big pay, but because bankers' pay has become disconnected from rewards for shareholders.

Read full article

Facebook and Glenstrata: Which is bubblier?

Some would argue there are two great bubbles in the world right now, in internet shares and commodities, but goodness how they manifest themselves differently on the stock market.

Today's manifestations of these phenomena are the merger talks between the mining and commodities trading groups Xstrata and Glencore, plus the announcement that Facebook will be coming to the stock market.

Read full article

Has government become anti-business?

There is a lot of chatter around the place that somehow the government is becoming anti-business with the way it welcomed the de-knighting of Fred Goodwin and the pressure it put on RBS's board to slash Stephen Hester's bonus.

That doesn't feel quite right - not least because business is not some homogeneous collection of individuals and institutions, all of which have a common outlook and interest.

Read full article

Fred Goodwin: Knighthood shredded

I keep being asked whether business leaders and bankers with knighthoods, CBEs and the rest should be living in terror that they too may be stripped of their honours following the decision of Her Majesty to de-sir Fred Goodwin, on the advice of Whitehall.

I don't really think so, because Fred Goodwin was in a class of his own, at least for the UK, in terms of taking business risks that damaged the wealth of taxpayers and undermined prospects for the British economy.

Read full article

Why Hester turned down the bonus

It was Labour's decision to put Stephen Hester's bonus to a Commons vote that gave the RBS chief executive no option but to say he would not be taking £963,000 in shares.

As an RBS director put it to me, it would have been a great mistake for the semi-nationalised bank to fight parliament to preserve rewards for its chief executive seen by many as excessive.

Read full article

RBS chair gives up £1.4m shares reward

Earlier this month I mentioned that Royal Bank of Scotland's chairman Sir Philip Hampton was entitled to receive 5.17m shares in the bank later this year.

These would have been worth £1.4m at the current RBS share price.

Read full article

Treasury feared Hester and board would quit

The Treasury is convinced that the board of Royal Bank of Scotland has taken its views into account, in paying a reduced bonus to Stephen Hester, chief executive of Royal Bank of Scotland.

But it is pretty difficult right now to judge whether that is true. Here is why.

Read full article

Cameron: Eurozone lacks conditions for success

David Cameron and entourage have rolled into Davos to sell the investment potential of Olympic-year Britain to the business leaders, investors and bankers who throng the World Economic Forum's annual meeting.

But in his plenary address, he also delivered something of a lecture to the eurozone on what it needs to do insure the long-term survival and prosperity of the creaking currency union.

Read full article

French bank boss says eurozone crisis has peaked

On the official second day of the World Economic Forum here in Davos, I have just interviewed Baudouin Prot, the chairman of BNP Paribas, the huge French bank which is seen as one of Europe's stronger banks.

He had two or three pretty interesting claims to make - though I should say at the outset that not everyone will agree with him.

Read full article

The rich, worried about inequality?

The UK is certainly not alone in debating whether the widening gap between the super-haves and the have-littles is an altogether good thing.

It is one of the big talking points here at the World Economic Forum, for an obvious reason.

Read full article

RBS pressure to cut Hester bonus

Government pressure is building on Royal Bank of Scotland's board to announce that chief executive Stephen Hester is to receive a significantly reduced bonus.

I am hearing that the Treasury will inform the company that it believes Mr Hester should receive less than half the bonus of just over £2m that he was awarded last year. So that would be a bonus of less than £1m.

Read full article

Is Vince Cable castrating non-execs?

My train is chugging up the snow-carpeted mountain to the Alpine resort of Davos, once a refuge for consumptives and now, at the World Economic Forum's annual meeting, home-from-home for the world's more conspicuous consumers (bankers, hedge fund managers, private-equity stars, inter alia).

It is therefore inevitable that a business editor's thoughts turn again to the widening gap between top people's remuneration and the rewards more widely available.

Read full article

Will highly paid investors curb pay of highly paid bosses?

To curb the excesses of executive pay, Vince Cable has passed the buck back to shareholders.

Investors will be given the power to formally veto companies' future pay policies - although, as is the case now, if shareholders dislike how businesses have implemented the agreed policy, their votes will not be binding.

Is bull market talk all bull?

In a financial sense, spring is in the air. But is a chill wind about to blow from Greece that could snuff out the buds of growing investor and banker optimism?

Perhaps the most important manifestation of a markets thaw is that some banks have been able to sell debt - to borrow - again. As Morgan Stanley pointed out last week, European banks, or at least the stronger northern European variety, have issued more senior unsecured bonds in the first few days of this year than in the whole of the second half of last year.

Read full article

About Robert

Robert has won numerous awards for his journalism, including Journalist of the Year, Specialist Journalist of the Year and Scoop of the Year (twice) from the Royal Television Society, Performer of the Year from the Broadcasting Press Guild, and Broadcaster of the Year and Journalist of the Year from the Wincott Foundation.

Prior to joining the BBC, he was political editor and financial editor of the Financial Times, City Editor of the Sunday Telegraph and a columnist for the New Statesman and Sunday Times.

He broadcast and published a series of influential reports about the causes and consequences of the global financial crisis.

More correspondents

  • Stephanie Flanders Stephanie Flanders Economics editor

    Thoughts on the UK economy and how it affects us all


  • Nick Robinson Nick Robinson Political editor

    The latest on what’s going on in and around politics


  • Paul Mason Paul Mason Economics editor, Newsnight

    Reports and insight into people, planet and profit


bbc.co.uk navigation

BBC © 2012 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.