International banking investigations; the trouble with open plan offices

The daily briefing “FirstFT” from the Financial Times.

HSBC could be hit by fresh legal action in the UK and the US after the leak of secret files exposing widespread tax avoidance at its Swiss operation. (FT)

The scandal raises the risk of criminal investigation in Britain. The US Department of Justice could also revisit a deferred prosecution agreement over money laundering allegations. Meanwhile, Herve Falciani, the former HSBC engineer who leaked the files, has teamed up with far left Spanish party Podemos to advise them on tax policy. (FT)

Jonathan Guthrie points out that the scandal reflects the federal nature of the bank, where “national units were run by barons whose ethics were local, and thus helpfully flexible.” This means there is still scope for it to be rocked by further revelations of historic wrongdoing. (FT)

In the news

Qualcomm pays record $975m fine The US chipmaker settled allegations by Chinese authorities that it violated the country’s anti-monopoly laws. Under the terms of the settlement, Qualcomm will cut the amount it charges Chinese manufacturers to license some of its patented technologies. The settlement was less severe than expected and Qualcomm was able to boost its revenue and profit as a result. (FT, WSJ$)

Obama open to arming Ukraine The US president said he had not yet made a decision but confirmed that military aid is being considered. Don’t be fooled by the public show of unity he put on with the German chancellor yesterday: the debate risks creating a fracture between the US and Europe over how to approach the Ukraine crisis. (FT)

Dalian Wanda buys sports rights agency for EUR1bn The Chinese property developer continued its diversification by buying Infront Media, which distributes broadcasting rights for some of the world’s biggest sporting events and is led by Philippe Blatter , the nephew of Fifa president Sepp Blatter. (FT)

Petrobras scandal spreads overseas Two major Singaporean shipbuilders and three Brazilian companies with Japanese shareholders have been accused of paying bribes to Petrobras officials. This is the first time international investors have been linked to the scandal which is threatening to drive Brazil’s most important company into bankruptcy. (FT)

It’s a big day for

Coca-Cola, which reports fourth-quarter results today. It had already warned in October that it would miss its profit target in 2014 for the first time in several years. (WSJ$)

The G20, which is in the second day of meetings in Istanbul. The OECD has already warned that growth is slowing among these industrial nations. They need to agree boosting tactics but a proposal to set specific investment targets has already been rejected. (FT, Reuters)

Food for thought

In conversation with Barack Obama The US president discusses the Affordable Care Act, his polarising qualities and foreign policy with Vox: “a China that is disorderly is a big problem because there are a lot of Chinese in the world, and if they’re not doing well and they’re unstable, that’s very dangerous for the region.”

The loneliness of drone pilots One out of every three aeroplanes operated by the US military is a drone but pilots are dropping out at an alarming rate. A Pentagon study found that nearly one-third of drone pilots suffer from “burnout” due to fatigue and 17 per cent are “clinically distressed”. (The Kernel)

Chinese labour ties fray The closure of an international labour research centre in Guangzhou has alarmed union officials, particularly in the Pearl Delta region where problems with industrial unrest have been the most pronounced. Reports of suppressive police tactics have grown more common and analysts say there has been a growing wariness of foreign influence in civil society. (WSJ$)

Towers of secrecy As part of its investigation into the people behind shell companies that own condos in the Time Warner Center, the New York Times turns its attention to a property developer in India. Even as people protested in New Delhi over incomplete residential apartments that had been completely paid for, Kabul Chawla was enjoying the comfort of a condo in the Time Warner Center, which became one of the most expensive residential sales of 2012. (NYT$)

Counting the cost of Brexit

Video of the day

Down with the open-plan office It makes you dumber, less productive and less healthy – Cardiff Garcia looks at how we ended up with so many open-plan workspaces. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A man walks past buildings at the central business district of Singapore. REUTERS/Nicky Loh.