Shadow chancellor John McDonnell warns City: ‘People want change… get used to it’ July 30, 2018 It’s fair to say that John McDonnell does not see the world in quite the same light as most City workers. During the first Budget after he became shadow chancellor, McDonnell quoted from Chairman Mao’s Little Red Book, before flinging it at his then-counterpart George Osborne. Years earlier, he was caught on camera saying he [...]
Spotify’s (SPOT) results get a rocky reception, as it hits subscriber growth at a €394m expense | City A.M. July 26, 2018 In its second financial report since going public, Spotify confirmed expectations that it won’t be profitable any time soon. The music streaming app, which listed on the New York Stock Exchange directly in April, revealed €1.27bn (£1.13bn) in revenue across its second quarter this afternoon, up 26 per cent year-on-year and in line with analyst [...]
‘No terminal damage’ of the City because of Brexit, says Barclays boss John McFarlane | City A.M. July 25, 2018 Barclays boss John McFarlane has struck a note of caution about the impact of Brexit on the City, saying he doesn’t believe it will cause “terminal damage”. In an interview with Reuters, the chairman also known as ‘Mac the Knife’ shrugged off fears that the plan for the sector’s future trading relationship, revealed as part [...]
‘Natural income’ vs ‘decumulation’: what’s the best way to take income from my investments? July 23, 2018 The goal of many investors is to build a portfolio that can generate sufficient income to replace traditional sources, but this isn’t as straightforward as it may seem. It is essential to understand the different methods of extracting money from your investments. How money is withdrawn can dramatically affect the length of time until that [...]
City of London Police get cryptocurrency training to help tackle money laundering | City A.M. July 22, 2018 Fears that the growth of cryptocurrencies are opening up further opportunities for criminals to launder money have led to the establishment of a new training programme by the City of London Police. Describing it as a “first of its kind”, a spokesperson for City of London Police confirmed the addition of a cryptocurrency course at [...]
Two years on: how Brexit has affected the UK economy July 22, 2018 The UK economy was supposed to plunge into recession soon after the vote to leave the EU, but the majority of forecasters were wrong. Consumer confidence remained positive, encouraging increased spending, despite a slowdown in almost every other sector of the economy. As household consumption is a large contributor to GDP growth, it more than [...]
Last Week in the City: August rate rise now less likely July 20, 2018 Garry White, chief investment commentator, looks at the market-moving events that have shaped the UK equity markets this week (16 to 20 July 2018). The chances of an interest rate rise at the Bank of England’s August meeting appeared to recede this week after inflation data was more subdued than expected and retail sales data [...]
FCA: Banks should prepare for no deal | City A.M. July 19, 2018 Banks should start preparing for a hard Brexit as the deadline to the UK’s withdrawal from the EU looms large, the Financial Conduct Authority (FCA) has said. With just eight months until Brexit day – 29 March 2019 – the City’s watchdog has added its voice to the chorus of groups urging businesses to step [...]
Banking culture needs to adapt as the algorithms learn to trade | City A.M. July 19, 2018 Financial markets never sleep. The trade in financial instruments has long been a global marketplace, operating round the clock. But increasingly, market continuity is maintained not only by human intervention, but also by algorithmic tools. This has brought with it huge client benefits: executing trades at an unprecedented pace and volume, lowering costs, increasing accuracy, [...]
How might a trade war play out? July 19, 2018 The Trump team appears to see trade wars as a central policy rather than a bargaining strategy. With the possible advent of further tariffs on European and Chinese exports, we look at the potential consequences such as higher inflation and lower growth. The impact on interest rates and currencies While the US has begun to [...]