Millennials key to worldwide cyber security workforce shortage, says new study

BY Fraser Tennant

A severe shortage of talent in the information security workforce is looming, with employers needing to look to millennials to fill the gap, according to new research from the Center for Cyber Safety and Education, published this week.

The research, part of the Centre’s eighth Global Information Security Workforce Study (GISWS), which includes feedback from over 19,000 information security professionals worldwide, indicates that employers must look to millennials to fill the projected 1.8 million information security workforce gap that is estimated to exist by 2022. This is a 20 percent rise from the 1.5 million worker shortfall forecast by the GISWS in 2015.

The publication of the GISWS coincides with a major initiative to tackle the UK skills deficit due to a lack of millennials recruited into the field: the National Cyber Security Centre, which was officially opened this week in London.

"Supporting and developing the next generation of cyber security talent is essential to the future of the industry,” said Richard Horne, cyber security partner at PwC. “We are on track to recruit more than 1000 technology specialists over the next four years at both graduate and experienced levels. It is important to help graduates experience the many different paths a career in this field could follow by offering a rotation programme around our teams, ranging from threat intelligence and incident detection and response to security transformation programmes and legal and regulatory compliance.”

The 2017 GISWS features a series of reports and analyses focusing on millennial respondents, with key takeaways for employers and hiring managers as to how they should go about attracting and retaining the millennial workforce. These include: (i) millennials value career development opportunities and are more likely to pay for them, if not offered by their employers; (ii) they are more likely to aspire to become security consultants than move into managerial roles within an organisation; and (iii) salaries were not the highest priority for millennials, but they do receive higher salary increases than other generations.

Mr Horne continued: “Cyber security roles can often be seen as purely technical but today's well-rounded cyber security expert has a diverse skillset, with not only technical knowledge but also wider business skills like creativity, organisation, relationship-building and communication."

With addressing the impending information security workforce shortage clearly a major concern, David Shearer, chief executive of the Center for Cyber Safety and Education, is confident that millennials “are the future of cyber security and hold the key to filling the information security workforce gap".

Report: Meet the Millennials – the Next Generation of your Information Security Workforce

Reckitt Benckiser to acquire Mead Johnson for $16.6bn

BY Richard Summerfield

The world’s leading consumer health and hygiene firm, Reckitt Benckiser Group plc, has announced that it is to acquire Mead Johnson Nutrition Company for around $16.6bn, though the total value of the deal, including the target's existing debt, will be around $17.9bn.

Mead's shareholders will receive $90 cash per share held, a premium of 9 percent to the company's closing price of $69.50 on 1 February 2017, the day before speculation of a possible deal first emerged, and 24 percent up on its 30-day volume-weighted average price of $72.37.

In a statement announcing the deal Rakesh Kapoor, Reckitt's chief executive, said: “The acquisition of Mead Johnson is a significant step forward in RB’s journey as a leader in consumer health. With the Enfa family of brands, the world’s leading franchise in infant and children’s nutrition, we will provide families with vital nutritional support. This is a natural extension to RB’s consumer health portfolio of Powerbrands which are already trusted by millions of mothers, reinforcing the importance of health and hygiene for their families.”

According to the firms, the newly combined company will generate around 40 percent of its sales in developing markets. China will be the firm’s second-largest market after the US. The takeover will add to Reckitt's earnings within a year of the deal completing and the deal will generate $250m of cost savings after three years.

James Cornelius, chairman of Mead's board of directors, said: “The agreement being announced today is about value creation. First and foremost, this transaction provides tremendous value to Mead Johnson Nutrition stockholders. Additionally, relative to the future growth and development of the Mead Johnson business, Reckitt Benckiser – with its strong financial base, broad global footprint, consumer branding expertise and dynamic business model – is an ideal partner.”

Reckitt has confirmed that the deal will be funded through a combination of cash and new debt. To complete the deal, the company will take out a bridging loan of $8bn to cover the cash consideration and issue $9bn of new debt in the form of three- to five-year-term loans.

The two companies have also noted that the deal will include a $480m break-fee if either company walks away, subject to certain conditions.

News: Reckitt Benckiser to buy Mead Johnson

Automotive industry faces crunch as production set to nosedive in Western Europe, survey reveals

BY James Williams

Automotive production in Western Europe will be less than 5 percent by 2030, according to KPMG’s ‘Global Automotive Executive Survey 2017’ – its annual state of play analysis of the industry.

Following the UK’s decision to leave the European Union (EU), 65 percent of automotive executives believe that the EU as it is today “will be history in 2025”. This scenario would not only jeopardise the free trade zone within the EU, but also “disruptively affect the automotive industry worldwide”.

Now in its 18th year, the study assesses the current state and future prospects of the worldwide automotive industry, gathering the opinions of almost 1000 executives from 42 different companies.

Respondents believe that the end of the EU would trigger an automotive production shortage in Western European countries by 2030 – in addition to the globalisation and development of China’s sales market – which would see car production fall from 13.1 million to 5.4 million within 13 years.

The survey states: “Not only will macroeconomic risks and geopolitical turmoil have a significant impact on the automotive sector in Western Europe, the emergence of China as the most important automotive sales market will also lead to dramatic dependencies for some auto manufacturers in the region”.

Furthermore, 76 percent of executives agree that China will dominate more than 40 percent of its global share of vehicle sales by 2030, and will continue to keep its “pole position as world leader for sales in the automotive industry”.

It is also estimated that China would need to sell a total of 43 million vehicles to reach its predicted figure. Over 56 percent of global executives believe that the country is a “high growth market for traditional and mass volume manufacturers”.

The survey notes that “China is absolutely seen by executives as a high growth market primarily for mass and volume manufacturers as well as for premium manufacturers. This leads to the conclusion that innovations will be developed for China but not necessarily by Chinese players”.

Overall, the effect of Brexit could prove to be more damaging to Western Europe than first thought. The threat of a depleted EU could see British automotive trade diminish.

Report: ‘Global Automotive Executive Survey 2017’

The shape of things to come

BY Richard Summerfield

As 2016 demonstrated, we live in changeable, unpredictable times. Regardless, PwC has offered a bold forecast for the state of the global economic order. In a report released this week, 'The World in 2050', PwC sets out its long-term global growth projections to 2050 for 32 of the largest economies in the world. Those countries account for around 85 percent of world’s GDP.

According to PwC, the global economy could more than double in size. It forecasts cumulative global GDP growth of 130 percent between 2016 and 2050. Much of this growth will be seen in emerging markets, which could grow at twice the speed of developed nations and see their of global GDP rise from around 35 percent to around 50 percent by 2050.

China will most likely be the largest economy in the world, accounting for around 20 percent of world GDP in 2050. In total, six of the seven largest global economies will be found in the emerging markets. Mexico and Indonesia could emerge as significant forces in the coming decades. In order for emerging markets to realise their long-term growth potential, they will need to enhance their institutions and infrastructure. Greater investment in education, infrastructure and technology is necessary. Diversifying their economies will also help with sustainable growth.

By contrast, developed markets such as the US will not fare as well. The US could be down to third place in the global GDP rankings behind China and India. The EU27’s share of world GDP could fall below 10 percent by 2050. The UK could drop to 10th place.

But these various levels of economic growth are dependent on political and economic policy decisions. As John Hawksworth, chief economist at PwC UK, notes, “a populist backlash against globalisation, automation and the perceived impact of these trends in increasing income inequality and weakening social cohesion” will pose a genuine threat to growth, both in the developed and developing worlds.

He continues: “There is no silver bullet to address these concerns. They require determined efforts by governments to boost the quality of education and training, and address perceived unfairness through well targeted fiscal policies. They also require real political leadership to resist calls for increased protectionism and maintain momentum on longer term issues like climate change and global poverty reduction.”

Report: The World in 2050

Greece debt crisis: new survey shows how ordinary Greeks view €86bn European bailout

BY Fraser Tennant

Amid ongoing electoral tensions, domestic debates and political struggle, the beleaguered citizens of Greece have had their say – via a nationwide survey – on the progress of bailout talks, the stability of the Greek economy, the viability of Grexit, as well as the job being done by the Syriza coalition government to keep the country afloat.

Coinciding with a stall in talks on the conclusion of the second review of the Greek bailout (the result of two unsuccessful Eurogroup meetings held in December 2016 and January 2017), the survey highlights what ordinary Greeks think about their status as an under pressure European Union (EU) member state – one which, if it does not receive a new tranche of financial aid under its €86bn bailout by the third quarter of 2017, risks defaulting on its debts.

The German government announced last week that it remained united on the need to stabilise the Greece economy, despite a clear divergence of opinion between Chancellor Angela Merkel's conservatives and their Social Democratic coalition partners on how this can best be achieved going forward.  

Among the key findings of ‘Nationwide Survey in Greece: Bailout Talks, Assessment of Syriza coalition government’ are: (i) the Syriza party remains ahead of the opposition New Democracy party by a narrow margin (Syriza has led the polls since January 2015); (ii) the undecided voters pool is "getting bigger" and has exceeded 30 percent for the first time since September 2015; (iii) the German government is being blamed by 67 percent of Greeks for the big delay in concluding the Greek bailout review; (iv) the majority of Greeks do not consider Grexit to be a viable alternative (71 percent consider the economic policy that has been implemented as "problematic"); (v) the role and stance of opposition parties, especially in the economic filed, is perceived to be “insufficient”, with 70 percent indicating a lack of alternative solutions and policies; and (vi) prime minister Alexis Tsipras is held to be the most popular leader followed by opposition leader, Kyriakos Mitsotakis.

Furthermore, the survey highlights hopes that the bailout programme will be the “last one”, a view held by 44 percent of Greeks.  

With time clearly pressing on all sides, the coming months are likely to see further disruption, with the next Eurogroup meeting later this month, while not exactly make or break, highly significant for the Greek economy and its people, ordinary or otherwise.

Report: Nationwide Survey in Greece: Bailout Talks, Assessment of Syriza coalition government