How can banks factor in climate change without damaging the economy? December 5, 2019 In a few weeks, we will get the results of the UK bank stress tests, which is a measure of our biggest banks’ ability to withstand the toughest of economic shocks. In 2021, these tests will include a scenario on climate change. The regulator wants to know that our biggest financial institutions really can weather [...]
M&G suspends trading in £2.5bn property fund over Brexit fears December 4, 2019 Trading has been suspended in M&G’s £2.5bn property fund after investors rushed to withdraw their money. Asset management giant M&G said the Property Portfolio has seen unusually high outflows, and blames continued Brexit-related political uncertainty for the fund suspension, which had made it difficult to sell commercial property. Read more: UK property investors fear Brexit [...]
Two lessons from the underperformance of alternative energy December 4, 2019 | City Talk Renewable energy is playing an ever-greater part in the mix of energy we use to power our daily lives. Potential investors in the sector may assume that it’s too late to get involved. Surely the best returns from companies exposed to the energy transition have already been made by now? Investors making that assumption may [...]
The woes of the IPO market show the problems with the stock exchange model December 3, 2019 A lot has changed since the early 1600s. For a start, we’ve stopped burning people at the stake for suggesting that the world is round. But some things have remained surprisingly similar over the past 400 years — like the stock exchange. Today, most exchanges remain similar in format to the very first stock market, [...]
Stubborn Boris could scupper 2020 GBP recovery December 2, 2019 | City Talk As we enter the final pre-election stretch, markets are faced with a number of potential consequences; from a Conservative-led Brexit, to a referendum and potential withdrawal of article 50 under a Lib/Lab/SNP alliance. However, one thing is for sure; there is a huge amount of uncertainty irrespective of the outcome. Should Corbyn manage to enter [...]
Are we witnessing the US dollar’s fall from grace? December 2, 2019 | City Talk November’s multi-asset chart of the month highlights how a global shortage of US dollars could be reversing. This could signal the beginning of a weak phase for the currency. A world in which money is scarce might appear to be a far-fetched idea. But for US banks in the business of taking deposits and making [...]
Who’s buying UK shares and what does it tell us? November 29, 2019 | City Talk High demand for UK-quoted companies from large and experienced buyers suggests other investors may be overlooking an opportunity. Will a UK general election on 12 December help break the Brexit stalemate? Possibly, possibly not. The ongoing uncertainty means investors of almost every stripe remain cautious about buying UK equities (shares). I stress ‘almost’ because some [...]
Revealed: the global league table of pension worry November 27, 2019 | City Talk Where in the world are investors most concerned about their pension savings? Schroders surveyed over 25,000 investors to find out. Experts often warn of a growing crisis in retirement saving. A study by the World Economic Forum, for example, calculated that the total shortfall in some of the world’s largest pensions markets would grow from $70 [...]
How the main political parties plan to help renters November 27, 2019 Wherever you stand on the recent debate about landlords putting thermostats in cages, many of us can agree that the rental system needs improving. This has become increasingly apparent as the number of people living in private rented accommodation has grown, doubling in the past three decades. Fortunately (and perhaps unsurprisingly), the main political parties [...]
IPOs – no sure thing? November 26, 2019 | City Talk IPOs always attract plenty of attention, particularly when they are of highly-recognised companies. But are they a wise destination for investor cash? IPOs offer plenty of glamour, a change from the usual stocks in an index, and there have been plenty of new entrants to the UK stock market over the past ten years. Some [...]