On this week’s market summary:
💡1. America’s biggest banks will learn the results of their latest stress tests from the US Federal Reserve this week, with a passing grade expected to be a catalyst for billions of dollars in stock buybacks and dividends. The likes of Goldman Sachs and JPMorgan Chase have been bolstered by government stimulus and buoyant revenues from trading and deal making. Once given the green light, finding money to give back to shareholders will not be a problem. JPMorgan, the largest US bank, it grew its CET1 capital to $206bn at the end of the first quarter from $184bn a year earlier. At Goldman Sachs, its CET1 capital rose over the same period to $85.2bn from $75.55bn, while Morgan Stanley’s swelled to $94.3bn from $74.7bn.
💡2. Booming commodity markets are fuelling debate in China about the potential impact of a commodities supercycle, which could saddle producers with high costs for years and pose a major threat to the country’s economic recovery from the coronavirus pandemic. Commodities fell slightly last week from recent record highs after the US dollar strengthened and Chinese authorities took steps to intervene in the market, but raw material prices are expected to remain buoyant until at least the end of the year. Early this year, Goldman Sachs said the global economy was on the brink of a new commodities supercycle driven by post-pandemic growth.
💡3. Blackstone has agreed to acquire Home Partners of America, a buyer and operator of single-family rental properties, for $6bn, a signal of confidence from the world’s largest real estate manager that the US housing market boom is here to stay. The private equity firm’s real estate arm, which has $378bn worth of property assets, will add a portfolio of more than 17,000 homes across the US. HPA will become part of Blackstone Real Estate Income Trust, a perpetual capital vehicle Blackstone manages for income-focused investors.
💡4. Mainland Chinese investors on average are looking at 13 per cent annual returns from their investments under the Wealth Management Connect initiative, a level deemed as too high given the restrictions, according to a survey by the Hong Kong Investment Funds Association. To achieve such high returns, mainland investors will have to invest in products with medium-to-high risk levels that have a higher exposure to equities; HKIFA chairman Nelson Chow told a media briefing to discuss the survey on Tuesday. However, the impending scheme allows mainland investors to only invest in about 300 Hong Kong-domiciled funds with low to medium risks with exposure to bonds and large cap stocks.
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One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” .
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics. Take a look of the summary and WhatsApp us in the group if you have questions.
💡1. America’s biggest banks will learn the results of their latest stress tests from the US Federal Reserve this week, with a passing grade expected to be a catalyst for billions of dollars in stock buybacks and dividends. The likes of Goldman Sachs and JPMorgan Chase have been bolstered by government stimulus and buoyant revenues from trading and deal making. Once given the green light, finding money to give back to shareholders will not be a problem. JPMorgan, the largest US bank, it grew its CET1 capital to $206bn at the end of the first quarter from $184bn a year earlier. At Goldman Sachs, its CET1 capital rose over the same period to $85.2bn from $75.55bn, while Morgan Stanley’s swelled to $94.3bn from $74.7bn.
💡2. Booming commodity markets are fuelling debate in China about the potential impact of a commodities supercycle, which could saddle producers with high costs for years and pose a major threat to the country’s economic recovery from the coronavirus pandemic. Commodities fell slightly last week from recent record highs after the US dollar strengthened and Chinese authorities took steps to intervene in the market, but raw material prices are expected to remain buoyant until at least the end of the year. Early this year, Goldman Sachs said the global economy was on the brink of a new commodities supercycle driven by post-pandemic growth.
💡3. Blackstone has agreed to acquire Home Partners of America, a buyer and operator of single-family rental properties, for $6bn, a signal of confidence from the world’s largest real estate manager that the US housing market boom is here to stay. The private equity firm’s real estate arm, which has $378bn worth of property assets, will add a portfolio of more than 17,000 homes across the US. HPA will become part of Blackstone Real Estate Income Trust, a perpetual capital vehicle Blackstone manages for income-focused investors.
💡4. Mainland Chinese investors on average are looking at 13 per cent annual returns from their investments under the Wealth Management Connect initiative, a level deemed as too high given the restrictions, according to a survey by the Hong Kong Investment Funds Association. To achieve such high returns, mainland investors will have to invest in products with medium-to-high risk levels that have a higher exposure to equities; HKIFA chairman Nelson Chow told a media briefing to discuss the survey on Tuesday. However, the impending scheme allows mainland investors to only invest in about 300 Hong Kong-domiciled funds with low to medium risks with exposure to bonds and large cap stocks.
————————————————
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” .
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics. Take a look of the summary and WhatsApp us in the group if you have questions.
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