Negative rates explained: should UK investors prepare? October 30, 2020 | City Talk The UK’s banks received a letter from the Bank of England (BoE) this week which has brought negative interest rates back into the headlines. The letter, published here, asked banks how ready they would be if the Bank of England base rate – which currently sits at 0.10% – moved into negative territory. The letter, signed [...]
Institutions don’t share retail investors’ optimism on returns October 28, 2020 | City Talk Schroders’ studies suggest retail – or individual – investors are more optimistic about future returns than investors at large institutions. Individuals have indicated that they expect average annual returns of nearly 11% over the next five years while institutional investors anticipate a more moderate 6%. Schroders’ Institutional Investor Study is an analysis of views from [...]
Can behavioural finance explain how investors think about sustainability? October 27, 2020 | City Talk Schroders Global Investor Study 2020 examined the attitudes and beliefs of more than 23,000 investors on sustainability. It is a vast project that yields fascinating insights on the way investors think. We thought it would be interesting to put some questions to Stuart Podmore, Investment Propositions Director and an expert in behavioural finance, about the [...]
Modern Monetary Theory: A shared delusion that will destroy the economy October 27, 2020 As Rishi Sunak announced another multi-billion-pound support package last week, most numerate people would have been boggling at the numbers. How are we ever going to pay all that money back? Surely it means years of austerity, high taxes, or debt for our children and grandchildren to repay? But there is a growing and increasingly [...]
Three factors behind the rise of the retail trader in 2020 October 26, 2020 | City Talk 2020 has seen global financial markets such as equities and foreign exchange (FX) being moved by an army of retail traders, in a manner we have not seen previously. Their influence is here to stay, writes Brendan Callan. It’s a cliché frequently used to describe the events of this year, but 2020 has not been [...]
Credit Suisse to connect clients with early-stage investment opportunities October 23, 2020 Credit Suisse, Linklaters, Deloitte and The Conduit Connect have launched a new venture to partner early-stage companies with potential investors. The partnership will connect members of London-based social change initiative The Conduit with Credit Suisse clients to access impact investment opportunities. The Conduit Connect currently matches early-stage investment opportunities, such as The Library of Things, [...]
Which stock markets look cheap as we enter the final quarter of 2020? October 23, 2020 | City Talk While the virus itself hasn’t gone away, as far as financial markets are concerned, the pit of misery was back in March. At that point, a typical global market stock market portfolio had haemorrhaged around a third of its value in just six weeks. Stocks have soared As is often the case, peak despair turns [...]
Don’t get in over your head – trade smart and trade safe October 21, 2020 | City Talk With the shift to at-home working resulting in lockdown boredom, there has been a surge in retail day traders around the world looking to profit from the market volatility. With the growing number of brokers committing to commission-free trading and zero-minimum balances, there are more choices than ever for retail traders. However, one must take [...]
City to shift €150bn of UK assets into France ahead of Brexit October 13, 2020 Firms have begun shifting around €150bn (€135bn) of UK assets from the City into France ahead of the Brexit transition period deadline, according to the governor of the Bank of France. Francois Villeroy de Galhau told the Europlace International Financial Forum that the Bank of France has authorised asset shifts by 32 companies — mostly [...]
Q&A: Trading Cryptos as CFDs October 12, 2020 | City Talk What are the different options when trading cryptocurrencies? There are a couple of different options for trading cryptos. You can buy the physical cryptocurrency with a provider that usually gives you an online wallet which you must learn to use to store your crypto. More recently trading platforms have emerged, but these remain unregulated in [...]