Regulator urges firms ‘don’t delay’ as the end is nigh for Libor January 11, 2021 The Financial Conduct Authority (FCA) has again reminded firms they must complete their transfer away from the Libor benchmark interest rate this year. The city watchdog said firms had just one year left to remove their remaining reliance on these benchmarks. Libor, or the London Interbank Offered Rate, is an interest rate benchmark used in [...]
Easyjet secures $2bn loan as coronavirus pain goes on January 11, 2021 Easyjet has today secured a new $1.9bn (£1.4bn) five year loan as it takes further steps to bolster its finances amid the coronavirus pandemic. In a statement, the carrier said that the loan would “significantly extend and improve easyJet’s debt maturity profile and strengthen easyJet’s balance sheet by increasing the level of available liquidity”. The [...]
Rishi Sunak calls for return to ‘sustainable finances’ ahead of March budget January 11, 2021 Rishi Sunak has reiterated the need to return to “sustainable” levels of government spending as he foreshadows future Budget cutbacks. Sunak told City A.M.’s The City View podcast in an exclusive interview that the Treasury’s £280bn Covid spending over the past year was “the right thing to do”, but that “over time” he had to [...]
Equity funds ride ‘coronacoaster’ to finish 2020 on a high January 7, 2021 Global equity funds closed a torrid year on a record high as investors were buoyed by news of a vaccine rollout. November saw savers invest a record £8.3bn, beating the previous record of £5.7bn net retail sales from September 2017, according to data from the Investment Association (IA). With interest rates at almost zero investors [...]
Will Europe’s smaller companies deliver big returns? January 7, 2021 European equities have been largely unloved by investors for some time, having lagged their global peers over the past decade: the MSCI Europe ex UK Index has grown by circa 6% pa whilst the MSCI World Index is up circa 11% pa. European smaller companies have fared markedly better than their large cap counterparts however, [...]
The case for investing in financials January 7, 2021 Entire tomes have been devoted to investing in the financial services sector – hardly surprising when you consider its size, and therefore its significance to the world’s capital markets. To say the financial sector is large doesn’t do it justice. Of the total market capitalisation of the S&P 500, the world’s largest stock market index, [...]
Before the Bell: Bulls in control, calm restored to Capitol Hill January 7, 2021 The disturbance at Capitol Hill derailed the process of certifying the Biden electoral victory for a number of hours last night but was then resumed so the final confirmation of Biden’s win should be relatively straightforward. Moreover, the FTSE 100 had a stellar run yesterday as it closed up more than 3 per cent and [...]
Brexit: BoE boss hits out at EU stance on equivalence for UK financial services January 6, 2021 Bank of England governor Andrew Bailey has slammed the EU for how it has handled decisions on the UK’s post-Brexit access to EU financial markets. Bailey told a Westminster committee today that Brussels’ demands to the UK Treasury on potential future regulatory decisions were “problematic”, before adding: “I fail to see why people would want [...]
Former City banker Richard Sharp ‘to be appointed’ as new BBC chair January 6, 2021 The government is reportedly poised to name former Goldman Sachs banker Richard Sharp as the new chair of the BBC. Ministers will this week announce that Sharp has been appointed to succeed Sir David Clementi at the helm of the broadcaster, Sky News reported. The appointment, which is made by the government rather than the [...]
Richard Sharp: Who is the surprise new frontrunner for the BBC top job? January 6, 2021 Speculation over the top contenders for the BBC chairmanship has been rife in recent weeks, with a string of well-known names entering (and exiting) the fray. But the race was this week thrown wide open after it emerged a relatively unknown candidate had emerged as the new frontrunner Richard Sharp, a multi-millionaire former Tory party [...]