Billions

• Title: Billions                                                                                               
  
• Duration: 2 seasons of 12 episodes each, around 50 minutes per episode.
• Country: United States of America
• Director: Andrew Ross Sorkin, Brian Koppelman and David Levien.
• Script: Willie Reale, Andrew Ross Sorkin, Brian Koppelman and David Levien.
• Year: 2016
• Trailer: https://www.youtube.com/watch?v=_raEUMLL-ZI
• Synopsis: Nothing is what it seems in the world of high finances. Everyday there are lies, treason, intelligence and agility and the both main characters of this series must use all of this: The Federal Prosecutor Chuck Rhoades and the ambitious king of the hedge funds, Bobby “Axe” Axelrod. Rhoades has started a personal fight with Axelrod. And through this titanic battle where there can be only one, both will use their ability, power and influence to win the other. So that, the series explores the narrow and dark relation between power and politics in the world of high finances of New York. Like the name of the series says, in this conflict there are big amounts of money in the game.

"Banking and Finance" in the series.

Throughout the series, there are a big amount of scenes with financial content. In these examples it can be observed how financial stocks are bought and sold, how the decisions are taken with the analyst's opinions or how an investment fund works. Unike other films or series, Billions' aim is not to explain the financial world to the audience because it uses technical language. An example of this are these scenes:

First Scene (season 1, episode 1). In this scene in the begining of the series, one of the workers of Axe Capital suggests to his boss to invest in an operation with  wide margins. However, Bobby Axelrod, the CEO, shows them that they were misunderstanding some information and why it is not a great operation to deal.

Second Scene (season 1, episode 11). Here we can see the differences between the profit which you can obtain depending on the risk you take, and even how they decide whether to run or not the risk based on the information that their analyst provide. In this case the decision was wrong, bringing a huge loss to the company. On the other hand, it is used some terms like close a position.

Personal commentary

Billions is a financial series which can quickly arouse your curiosity with the character of Bobby Axelrod, a billionaire and CEO of a company of brokers which survived to the September 11th atacks and to the financial colapse of 2008, and now this company is the king of hedge funds. Nevertheless, that privileged knowledge of the stock market is not casuality. He got to commit fraud and now he has issues with the justice.

But the strong point of the series are the interpersonal relationships of all the people involved that come out when the origin of this huge amount of capital is being investigated. Whendy Rhoades, the psychiatrist of the company, is also Charles Rhoades'  wife, who is the state prosecutor in charge of the investigation of Bobby.

In our opinion one of the most important aspects of Billions is how it creates the financial scenario. Far from ruthless speculators, the main character has achieved keeping a worthy public image. Many films have shown how brokers act, but until now a series has never covered it. Another aspect of Billions' script is its sense of humor, sometimes even rude.

In addition, this series is perfect nowadays when having a minimum financial knowledge is essential. While the economic differences are getting bigger and few people is ruling the world, with this we can imagine to reach them.

European Central Bank Signals End of Cheap Money Era is Coming

Link: https://nyti.ms/2xcC1XA

Date: 7th September, 2017

Media: The New York Times

What happened?

The European Central Bank has created a program known as “quantitative easing” to eliminate the so called “easy money policies”. These policies were created in 2008 to prevent the euro from self-destructing after the global financial meltdown. But the program also has secondary effects, including the increase of the goods’ prices in Germany (fear of bubble).

Whom and where it affects?

It affects the all Eurozone and consequently the international markets. In particular, this year, the dollar has declined more than 13 percent against the euro by tensions with North Korea and Washington.

What sort of public or private institutions are involved?

The Federal Reserve in the United States (Fed) and the European Central Bank (ECB)

Why is it important for Banking and Finance?

This article is important for Banking and Finance because it is directly linked to the transmission of monetary policy to control inflation and economic growth.

What do you think will be the consequences in the foreseeable future?

The recent volatility in the exchange rate represents a source of uncertainty which requires monitoring. Due this, the central bank will be keeping a close eye on the euro`s growing strength compared to the dollar.

We believe that when the euro rises against the dollar, European exports will become more expensive, not only in the United States but also in other countries, such as China whose currencies are linked to the dollar. Therefore, it could hurt growth and prolong the need for central bank stimulus.

It is expected that stop printing money would control the governments’ debt and help corporations’ investment.

Key words: Monetary policy, Interest rates, Bubble, Cheap money, Inflation

UK personal bank deposits growing at slowest rate since 2009

Link: https://www.theguardian.com/business/2017/sep/26/uk-personal-bank-deposits-growing-slowest-rate-2009

Date: 26th Sep., 2017

Media: The Guardian

·         What happened?

UK personal bank deposits are growing at slowest rate since 2009 because households are saving a bit less each month. Rather than borrowing more, as growth in personal deposits has slowed recently, alongside a slowdown in growth of consumer credit borrowing.

·         Whom and where it affects?

It affects British depositors, high banks and the market in the United Kingdom.

·         What sort of public or private institutions are involved?

Central Bank of UK (slowdown in growth of consumer credit borrowing), UK Finances (annual growth in personal deposits with high street banks fell to 2.2% in August), retailer´s market (growth in retail sales volumes rose by 1% in August).

·         Why is it important for Banking and Finance?

This news let the banks know how is the behavior about their customers. If they knew all mentioned before they could take decisions to try to reduce risks.

·         What do you think will be the consequences in the foreseeable future?

The spending power of British consumers is likely to come further under pressure from inflation, with the Bank of England forecasting the consumer price index (CPI) to peak above 3% in October. The CPI measure of inflation stood at 2.9% in August.

      Key words: Retailer, Customer, Inflation, Savings, Deposit.

World's central bank can't ignore the Bitcoin boom.

Link:  http://economictimes.indiatimes.com/markets/stocks/news/worlds-central-banks-cant-ignore-the-bitcoin-boom-bis-says/articleshow/60729048.cms

Date: Sep 18^th, 2017

Media: The Economic Times

What happened?

The Bitcoin growth could cause a risk in the stability of the international financial system. Because of this, central banks are considering the issue of a digital currency. In fact, there are many countries who have created their own cryptocurrencies for internal use.

Whom and where it affects?

The bitcoin, and in case that the central bank decides to issue its own digital currency, could affect everyone worldwide because it would have financial, economic and monetary policy repercussions. Specially in countries like Sweden where the cash use is dwindling.

What sort of public or private institutions are involved?

The public institutions are the World Central Bank and the national central banks all over the world.

As private institution, one finds JPMorgan Chase & Co.

Why is it important for Banking and Finance?

Because cryptocurrencies can change the world of Banking and Finance and, even in the article it is already considered as a “revolution” in finance.

What do you think will be the consequences in the foreseeable future?

Gradually, cash is disappearing as a result of the growth of the electronic transactions. So, the digital currencies are rising their presence in the international financial system. As a consequence, we believe that central banks will finish issuing digital currencies for keeping the control of the system.

Key words: Bitcoin, Central Bank, Financial System, Digital Currency, Monetary Policy.

Nomura, RBS lose bid to overturn $839 million mortgage bond award

Link: https://www.reuters.com/article/us-nomura-lawsuit/nomura-rbs-lose-bid-to-overturn-839-million-mortgage-bond-award-idUSKCN1C3305

Date: SEPTEMBER 28, 2017
Media: REUTERS

What happened?

Nomura Holdings Inc. and Royal Bank of Scotland (RBS) lost a U.S. court appeal to overturn an order requiring them to pay for making false statements while selling mortgage-backed securities to Fannie Mae (FNMA) and Freddie Mac (FMCC).

Whom and where it affects?

This news affects the financial markets, in a global area. The countries affected by this financial scandal are Japan, because Nomura Holding Inc. is a Japanese financial holding company, United Kingdom by RBS and finally, the United States, because FNMA and FMCC are the American corporations where the bonds were sold.

What sort of public or private institutions are involved?

Nomura Holding Inc, Royal Bank of Scotland, FNMA (Federal National Mortgage Association), FMCC (Federal Home Loan Mortgage Corp) and FHFA (Federal Housing Finance Agency). All of them are public institutions.

Why is it important for Banking and Finance?

This information is important for banking and finance because both Nomura and RBS are reference entities worldwide and have been involved in a case of mortgage fraud.

What do you think will be the consequences in the foreseeable future?

This stir will cause the weakening or loss of customers confidence.

Key words: Mortgage bond, Securities, Financial crisis, Housing market, Lawsuits.

Starling takes on the big banks with business lending play

Link: http://www.telegraph.co.uk/business/2017/10/04/starling-takes-big-banks-business-lending-play/

Date: 4th October, 2017

Media: The Telegraph

What happened?

Anne Boden, the chief executive and founder of Starling, has launched a digital challenger bank app. She realized that business lending had been highly concentrated with a few banks for too long, so she saw the opportunity to create a digital bank that would fulfill peoples needs.

For now it's only available for entrepreneurs, sole traders, and small business owners, and it's an app-only current account with thousands of users. It will launch a business banking service at the beginning of next year. With this app, she hopes to be a step closer to "open banking".

Whom and where it affects?

The main people affected by this app are the start ups and the main banks and lenders of Englad. It also affects the costumers, because with this app they would have more advantages, since they could do all the payments and invoices through their phone.

This business, "Starling Bank", has broken the monopolistic market, because now the customers can choose between the Digital Bank and the conventional Banks.

What sort of public or private institutions are involved?

On the one hand, the public institution involved in this new is the RBS (Royal Bank of Scotland). On the other hand, the private institutions involved in it are the Starling Bank, Williams and Glyn, traditional banking, Monzo (directed by Paul Blomfield) and Atom.

Why is it important for Banking and Finance?

It's important for banking and finance because this will mean a revolution in the sector, due to the fact that depositors will be able to create a current account with their trusted bank through the app.

This will allow customers to save time, which is very important to business owners, since they're very busy and want to save as much time as possible.

Also, at the beginning of next year the app will launch a business banking service, which will be a big competition for traditional banking, because if they clients start using it, this could cause a great change in the banking sector since it would become digital.

What do you think will be the consequences in the foreseeable future?

We think that the consequences in the foreseeable future will be that these types of services that Anne offer, will have a great impact in small-medium businesses, because it gives facilities to people who want to start a business, that other banks cannot offer. For example, they offer a 24/7 service and is completely digital.

Key words: Current account, Business lending play, Traders, Market, Start-up, Digital Challenger Bank.

Should you let a 'robot' manage your retirement savings?

 Link: http://www.bbc.com/news/business-41159944

Date: 8 September 2017

Media: BBC News

• What happened?

The news “Should you let a 'robot' manage your retirement savings?” talks about efficiency by replacing people with robots in the financial sector. There are contradictions in this issue, since 68% of people prefer the computer system to plan their retirement since it is cheaper than a human advice. Another reason is many people feel uncomfortable talking about their finances.
On the other hand there will be a significant increase in the use of these technologies in the USA and Chinese.
Finally, this new technology will allow manage adequately the retirement savings, because a lot of people could be spending their retirements in poverty, and Governments are concerned that this might then place an unsustainable burden on welfare systems.

• Whom and where it affects?

For the time being, the robo-advice affects to the small investor trying to save for a comfortable retirement and also the banks for the new way to work in the finances.

Where the most noticeable change is in the USA and China, that is expected to increase the technology advice, and also in UK, where are arguing about this issue.

• What sort of public ir private institutions are involved?

Wealth Wizards, it is a company that through the best software engineering is dedicated to creating a financial advisory platform, based in United Kingdom.  
And also, some entities are using this tool, for example, John Perks, managing director of life and pensions at UK insurer LV, which launched its Retirement Wizard robo-advice service two years ago.

• Why is it important for Banking and Finance?

We choose this news because it talks about interesting points as:

On one hand, a large proportion of the population haven’t  enough financial literacy so they need financial advice from experts. What it is discussed here is if it is better being advised by robots or by humans.

On the other hand, it has to be mentioned that with this new method banks are saving in personnel costs, because they do not need to hire so many employees to advise clients.

• What do you think will be the consequences in the foreseeable future?

We think that advices will not be on the part of humans, because, in the future, robots will control our savings in a cheaper, efficient, safe and reasonable way. Finally, this change from person to robot, will give banks greater benefits for banks by saving personnel.

Key words: Algorithms, Asset allocation plan, Portfolios, Investment, Risk, Robo-adviser, Automated financial.