Forecasting the US election: should investors prepare for a new president? August 13, 2020 | City Talk Our analysis shows that the US presidential race may be closer than it first appears, but investors should at least be questioning what a Biden win will mean for markets and policy. When it comes to forecasting the US election, on the face of it both macro modelling and polls point to a comfortable win [...]
The top five accounting mistakes analysts make August 11, 2020 | City Talk Prior to entering graduate school almost 20 years ago, I had a very important phone conversation with an analyst at the Dreyfus Founders Funds, Chuck Reed. That brief phone conversation changed my focus in graduate school — and hence my life. One of the questions I asked Chuck was, “What skills should I acquire that most [...]
Investors expect even higher returns from the stock market in years ahead – despite coronavirus shock August 10, 2020 | City Talk Savers predict annual returns of 10.9% from their stock market investments, even as Covid-19 halted the longest economic expansion on record and plunged the world into deep recession. Investors continue to hope for double-digit yearly total returns from their portfolios, despite the huge blow inflicted on the global economy by the Covid-19 pandemic, according to [...]
TP ICAP sees slow start to second half but retains guidance August 7, 2020 TP ICAP reported a slow start to the second half as the high level of trading activity during lockdown started to fade. Despite a slowdown in activity the inter-dealer broker maintained its guidance of low single-digit revenue growth for the year. The figures TP ICAP increased underlying profits in the period to £136m, up from [...]
US private equity firms step in where UK houses remain cautious August 5, 2020 US firms are increasing their share of the market as UK private equity houses retreat amid market uncertainty. Exclusive data seen by City A.M. shows the number of private equity investments in the UK fell by 17 per cent in the first half of the year. Investments by UK PE houses plunged 27 per cent [...]
Scottish Widows becomes first investor in Blackrock climate fund August 5, 2020 Scottish Widows has become the first investor in Blackrock’s newly launched climate fund, which is designed for the transition to a low carbon economy. The pension provider is initially allocating £2bn of its pension portfolios into Blackrock’s Climate Transition World Equity Fund. It marks a shift in strategy for Blackrock, which is using data to [...]
Could the bounce-back be quashed by a second wave? August 4, 2020 | City Talk With some countries fearing a second wave of Covid-19 cases, Schroders’ chief economist Keith Wade considers whether a bounce back in the economy could be quashed. While there are hopes that the easing of lockdowns and reopening of businesses are beginning to give life to the global economy, fears of second waves of infections are [...]
No longer superheroes? Twilight of the bonds August 4, 2020 | City Talk Superman not only has the best superpowers – he is also handsome and humble. No-one can outmatch him, except perhaps someone who brings the proverbial gun to a knife fight. In this case, that gun is Kryptonite, Superman’s only known weakness. The substance renders his powers useless. In the investment world, fixed-income instruments have their [...]
FCA proposes 180-day wait for property fund withdrawals August 3, 2020 The City regulator is planning to ask investors in open-ended property funds to give 180-day notice before they withdraw money. In a consultation paper released today, the Financial Conduct Authority said there was a “liquidity mismatch” between the underlying property held in the funds and the almost daily basis in which investors buy and sell [...]
28 months later: are European equities back on investors’ radar? July 29, 2020 | City Talk European equity flows turned positive in June for the first time in 28 months – we look at what might be reviving investor interest in the asset class. It’s been a tough couple of years for pan-European equities. A combination of political worries, including Brexit, and weak economic growth means many investors have shunned the [...]