Business
Life after Lehman Brothers

MORGAN McKINLEY LONDON EMPLOYMENT MONITOR
London Employment Monitor August 2018 highlights:
- 10% increase in jobs available, month-on-month
- 33% decrease in jobs available, year-on-year
- 2% decrease in professionals seeking jobs, month-on-month
- 8% decrease in professionals seeking jobs, year-on-year
- 22% increase in salaries, month-on-month
City jobs spike bucks economic and seasonal trends
City jobs were up 10% month-on-month in August, a significant increase
“Excluding the traditional January jolt in new jobs, we haven’t seen a double digit increase in jobs since March of 2017”, said Hakan Enver, Managing Director, Morgan McKinley Financial Services. “With Brexit six months away and no consensus in sight, it’s astonishing to see so many new jobs open up”.

August_2018_Chart1 Financial services jobs new market
The increase is even more significant coming during a traditionally sleepy time of the year for hiring, when most businesses are holding off on releasing new jobs until after the summer holidays are over. It’s not all sunny skies however, as year-on-year figures paint a more sober portrait, showing a 33% decrease.
Job seeker optimism on the rise
The 2% month-on-month decrease in job seekers is also encouraging in light of July’s 21% month-on-month increase. Similarly, the 8% year-on-year decrease is an indicator of stabilisation after two years of stark decline in job seekers. “It’s too early to call an end to the City Brexodus, but this summer job seekers were out in force”, said Enver.
In additional good news, City salaries increased by 22% month-on-month, consistent with a positive upward salary trend throughout the summer. “The salary increases are likely the greatest contributor to why we are seeing confidence among job searchers soaring”, said Enver.

August_2018_Chart2 Jobseekers available both in out employment
Lehman Brothers’ impact still felt, decade later
A decade ago – 15th September 2008 – marked the collapse of Lehman Brothers, which sparked a financial crisis that triggered shock waves across the globe, devastating individuals from all walks of life. “Generations learned, overnight and in the most terrifying manner, just how deeply connected financial services are with every facet of our lives”, said Enver.
From foreclosed homes in Florida and to soaring childhood poverty in Greece to job losses across the board, recovery has been mixed for businesses and individuals alike. “In the blink of an eye regulatory departments went from sleepy backwaters of financial institutions to the stewards of the frontlines”, said Enver.

August_2018_Chart 3 Average change in salary
A look back at data from 2004 onwards shows the impact of the Bear Stearns bailout in March of 2018 – six months before the Lehman Brothers collapse – setting the stage for the economic crisis as it came to be known. In the years following the collapse of Lehman Brothers, a series of stressors contributed to peaks and valleys in City employment. “Remembering the devastation of the Lehman Brothers crash helps put our current situation in perspective. It was a much more treacherous storm to weather than Brexit”, said Enver.
Indeed the historic data also shows that Brexit in 2016, as well as the 2015 referendum on the Conservative government, triggered an initial spike in hiring in the Square Mile, only to decline shortly thereafter for an extended period of time, though both were less devastating than the loss of Lehman Brothers.
“Only time will tell how fully we’ve absorbed the lessons of the 2008 crisis”, said Enver. “The 14 year trend shows how far the volume of jobs dropped post 2011.* Clearly, the impact of Lehman’s has had a devastating effect on hiring numbers. Teams shrunk in size and more people were having to search for new employment. This is indicative of the increase in candidates searching for new positions between 2009 and 2011. As markets stabilised, the number of job seekers dropped considerably and it wasn’t until 2013 that confidence in searching for alternative vacancies trickled back. To some extent, much of this was a result of many financial institutions having to hire aggressively within their regulatory departments”, concluded Enver.
*Note: The chart shows only permanent jobs being reported from 2004 onwards. From 2012 Morgan McKinley reported on a combination of both permanent and temporary jobs.

Jobs available and professionals seeking new jobs 2004 – 2018
Business
Can a leader’s level of enthusiasm and optimism really impact the bottom line?

By Mark E. Brouker, Captain, United States Navy, founder of Brouker Leadership Solutions
Can a leader’s level of enthusiasm and optimism really impact the bottom line? We hear of the leader’s ability to influence others in powerful ways in politics, academia, sports, among other areas. However, in business, profitability is where the rubber meets the road. How impactful is the leader’s level of enthusiasm and optimism in creating a healthy bottom line?
One of the truly remarkable and rewarding tours of duty I had during my Navy career was with a small group of highly motivated doctors and pharmacists from all three services – Army, Navy, and Air Force. These professionals were all hand-picked to join a newly-formed team which was directed to reduce the escalating cost of prescription medications provided for all Department of Defense (DoD) active duty (Army, Navy and Air Force) and family members. Our task was made more challenging because we were to reduce costs without decreasing quality of care. At that time, there were over eight million men, women, and children eligible for prescription medications throughout DoD. The annual cost was over five billion dollars and climbing fast.
Our boss, Dan, was a brilliant, hard-working, and extremely passionate leader who was highly respected by all. Dan cared for us and we cared for him. We were a tight group. We treated each other as family. Dan’s passion was contagious, and he quickly established a culture of caring, hard work and trust. We were poised for success. Because I was senior to other members of the team, Dan selected me to be his deputy.
The idea of creating a small team to bend the cost curve for the entire DoD pharmacy benefit was novel – it had never been tried before. While the team shared a genuine passion for this noble and ambitious undertaking, early wins were few and far between.
After the 6-month honeymoon period ended, enthusiasm was slowly replaced with frustration. Every morning we’d meet with Dan to share the progress or, more accurately, lack of progress with our respective projects. It was slow and insidious at first, but sarcasm, frustration and pessimism crept into the meetings. A few of the more vocal naysayers would spew their negative venom and Dan and I would make meager attempts to mitigate the damage, or in times of weakness simply join in. These meetings frequently went much longer than scheduled, drained everyone of energy, and were generally recognized to be a waste of time. In short, neither Dan nor I led these meetings. We attended them. One could feel the energy, passion and trust dissipate like air leaking from a balloon.

Mark E. Brouker
It was clear that Dan and I needed to change our attitudes. We candidly discussed the culture of pessimism that we were creating and, more importantly, how it was sucking trust and the creative juices from the team. Over a handshake, we agreed to help each other curb our negativity and celebrate small victories that were indeed happening. We’d address the challenges, but not mire in them. We agreed to not let anyone hijack the meeting with their negativity.
We were more careful in the words we chose – we rid ourselves of cynical remarks. We were careful with our body language. No scowling or worried looks. Above all, we focused on staying positive. We’d invest a few minutes before meetings to reflect on past successes, however minor, and mention them at the beginning of the meeting. We’d then address the challenges, and close each meeting with a reminder, once again, of past successes.
Frustration and pessimism were slowly replaced with enthusiasm and optimism. Wins starting coming. More wins followed. Within 2 years, our small team was saving DoD over $100 million annually with no reduction in quality. Our small team was recognized within the industry as a center of excellence. Our success was nothing less than stunning.
How did this happen? It turns out that Dan’s and my behaviors had a much more profound impact on our team members than we could have ever imagined. In fact, studies have shown that the leader’s level of enthusiasm and optimism directly impacts their team members level of enthusiasm and optimism. Why is this the case? A study by Gallup found that employees who are supervised by highly enthusiastic leaders are 59 percent more likely to be enthusiastic than those supervised by unenthusiastic leaders.[1] In other words, the leader’s behaviors, in this case optimism and enthusiasm, are contagious. Further, studies have indeed shown that businesses led by enthusiastic and optimistic leaders were significantly more profitable than those led by apathetic and pessimistic leaders. [2] [3]
Can a leader’s level of enthusiasm and optimism really impact the bottom line? Unquestionably the answer is yes. The leader’s ability to influence in politics, academia, sports and yes, profitability in business, is profound. Those businesses led by leaders who understand, respect, and embrace the strong correlation between the leader’s level of enthusiasm and optimism as it relates to performance and profits – and most importantly practice these behaviors – are at a distinct competitive advantage.
Be a great leader – lead with enthusiasm and optimism.
Mark E. Brouker, Captain, United States Navy (retired), Pharm.D., MBA, FACHE, BCPS, is founder of Brouker Leadership Solutions, and author of Lessons From The Navy: How To Earn Trust, Lead Teams, And Achieve Organizational Excellence. For more information visit http://www.broukerleadershipsolutions.com/.
[1] Gallup, “State of the American Workplace, 2017.” Accessed February 12,2020.
[2] Michael Bush, A Great Place to Work for All (Oakland, CA: Berrett-Koehler, 2018), 26
[3] Marcus Buckingham, First, Break All the Rules (New York, NY: Simon and Schuster, 1999), 40
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Business
JPMorgan to launch UK consumer bank within months

LONDON (Reuters) – JPMorgan Chase & Co will launch a digital consumer bank in Britain under its Chase brand within months, the U.S. banking giant said on Wednesday.
The bank said the new business had already recruited 400 people and would offer a range of products, including current accounts.
The UK venture will be led by Sanoke Viswanathan, who has been named chief executive. Viswanathan was previously chief administrative officer for JPMorgan’s corporate and investment bank.
The digital bank will be headquartered in London’s Canary Wharf financial district, with customers supported from a new call centre in Edinburgh.
Reports about a likely tilt by JPMorgan at the UK consumer market have been circulating for around a year, but the bank had publicly disclosed few details.
“The UK has a vibrant and highly competitive consumer banking marketplace, which is why we’ve designed the bank from scratch to specifically meet the needs of customers here,” said Gordon Smith, CEO of consumer and community banking for JPMorgan.
(Reporting by Iain Withers; Editing by Jan Harvey)
Business
European regulator clears Boeing 737 MAX airliner for return to service

(Reuters) – Boeing Co’s modified 737 MAX airliner is safe to return to service in Europe, the European Union Aviation Safety Agency (EASA) said on Wednesday, lifting a 22-month flight ban after two crashes of the jet which caused 346 deaths.
EASA Executive Director Patrick Ky said it had “every confidence” that the plane was safe following an independent European review of changes ranging from cockpit software to maintenance checks and pilot training.
“Let me be quite clear that this journey does not end here,” Ky said in a statement.
“We have every confidence that the aircraft is safe, which is the precondition for giving our approval. But we will continue to monitor 737 MAX operations closely as the aircraft resumes service.”
Regulators around the world grounded the MAX in March 2019, after the crash of an Ethiopian Airlines jet five months after one flown by Indonesia’s Lion Air plunged into the Java Sea. A total of 346 passengers and crew members were killed in the two crashes.
The United States lifted its ban in November, followed by Brazil and Canada. China, which was first to ban the plane after the second crash, and which represents a quarter of MAX sales, has not said when it will act.
Relatives of some crash victims have strongly criticised the move the clear Boeing’s best-selling airplane.
EASA represents 31 mainly EU nations, excluding Britain which formally left the bloc this month. Britain is expected to issue its own separate approval on Wednesday.
(Reporting by Sudip Kar-Gupta, Rachit Vats; editing by Jason Neely)