An underappreciated side effect of Brexit talks March 23, 2018 As the Brexit referendum nears its two-year anniversary, Brexit continues dominating economic and political media coverage. We have observed no shortage of angles, including: What is the latest snag in negotiations? Will Brussels and London make their deadlines? Can Prime Minister Theresa May keep her cabinet in order? We believe this nonstop Brexit coverage obscures [...]
The changing face of world shares March 22, 2018 The US market represents more than one half of the total quoted wealth in world shares. It is, however, a very different pattern of wealth holdings from previous decades, reflecting the huge changes underway in business models and customer preference. Looking at just how much the index has changed is a good way of mirroring [...]
London’s financial system needs to be better prepared ahead of Brexit March 21, 2018 The UK’s biggest challenge for our negotiations as we leave the European Union is to ensure that our economy is intact and properly prepared for the future. The City of London has an important role to play in helping to create a sustainable economy and the Brexit decision certainly presents some serious challenges. A solution [...]
Experian to acquire London fintech startup Clearscore in £275m deal March 15, 2018 Experian, the world’s biggest credit data company, has bought London-based fintech company Clearscore in a £275m deal. The credit checking firm’s CEO Brian Cassin said the deal was “another important step in our strategy to extend the services we provide to UK consumers”. Clearscore launched in July 2015 and now offers over 6m UK customers [...]
Big fish: The seven largest types of institutional investors March 7, 2018 Say whatever you want about the world, but there’s never been a better time to be an end investor. Many things investment professionals fear — fee compression, automation, artificial intelligence (AI), and blockchain — benefit clients through higher account balances and lower fees. Asset owners are the largest of those clients. Though they are frequently [...]
Two rules to rule them all: Watch out for companies with dual class shares March 6, 2018 Despite the relentless push towards corporate governance, one trend is going against the tide, threatening the old rule: “one share, one vote”. Regulators are rethinking their rules by letting firms issue controversial dual class shares. Companies that adopt this structure will issue two types of shares to give preferential rights to one set of [...]
Done deal: Tesco completes £3.7bn acquisition of Booker Group March 5, 2018 Tesco today completed its acquisition of Booker Group, creating the leading food group in the UK. The £3.7bn deal was given court approval on Friday after shareholders voted it through last week. Booker Group's shares have been de-listed from the London Stock Exchange. Each share has been exchanged for 42.5p in cash, and 0.861 new [...]
Done deal: Tesco completes £3.7bn acquisition of Booker Group | City A.M. March 5, 2018 Tesco today completed its acquisition of Booker Group, creating the leading food group in the UK. The £3.7bn deal was given court approval on Friday after shareholders voted it through last week. Booker Group’s shares have been de-listed from the London Stock Exchange. Each share has been exchanged for 42.5p in cash, and 0.861 new [...]
Investors set to receive £34m in compensation from misleading “closet tracker” fund managers March 4, 2018 Investors who may have been misled into paying higher fees are set to get £34m in compensation from asset managers. The Financial Conduct Authority (FCA) said that a number of firms were returning money to investors, though not in any official FCA-backed scheme, after the watchdog launched a crackdown on “closet tracker” funds. These are [...]
Last Week in the City: Trump threatens trade war March 2, 2018 This week US President Donald Trump threatened a trade war, a number of famous high street names, including Toys R Us and Maplin, got into serious trading trouble and upbeat assessments of the US economy from central bankers helped the US dollar to rally, reversing its recent trend. The FTSE 100 fell 0.2 per cent [...]