On this week’s market summary:
💡1. Morgan Stanley, Goldman Sachs, JPMorgan and BofA increase payouts after Fed loosens restrictions. Morgan Stanley announced that it would double its quarterly dividend to 70 cents a share and boost the size of its share buyback programme from up to $10bn to as much as $12bn. Other large banks also announced higher shareholder payouts, but only a handful followed Morgan Stanley by increasing the size of their buyback programmes. Goldman Sachs raised its dividend to $2 from $1.25, JPMorgan Chase increased its payout to $1 from 90 cents and Bank of America boosted its dividend to 21 cents from 18 cents. Wells Fargo doubled its dividend to 20 cents, though the bank had slashed the dividend a year ago from 51 cents. Similar to Morgan Stanley, the bank said it also planned to spend about $18bn in the year starting in the third quarter to buy back its own stock.
💡2. Inflationary pressures hit record highs in June as UK businesses continued to rebound, according to a closely watched survey that showed commercial activity fell back only slightly after last month’s reopening from lockdown. The reports of rising inflationary pressures comes after annual consumer price growth hit 2.1 per cent last month, unexpectedly surpassing the BoE target and sharpening fears that rapid post-lockdown expansion could be accompanied by sharp inflation.
💡3. Hong Kong is unlikely to see a significant impact on housing demand from the growing emigration wave, according to the president of the Real Estate Developers Association of Hong Kong (Reda), joining a chorus of market observers who expect prices to continue rising this year. “I know some people are leaving, but some people are moving here to Hong Kong,” said Keith Kerr, president of Reda and a former chairman and chief executive at Swire Properties.
💡4. Deutsche Bank will be unable to sponsor initial public offerings in Hong Kong from July after the German lender failed to replace two regulated staff on time, disrupting the company’s plans to relaunch its Asia equities business. The error means the IPO sponsor licence of Deutsche Securities Asia, the bank’s regional equity capital markets division, will lapse from next month, according to a person familiar with the matter and confirmed by the lender. This could be a slow process. Banks in Hong Kong need to maintain two regulated IPO principals to be authorised as a sponsor.
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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. Morgan Stanley, Goldman Sachs, JPMorgan and BofA increase payouts after Fed loosens restrictions. Morgan Stanley announced that it would double its quarterly dividend to 70 cents a share and boost the size of its share buyback programme from up to $10bn to as much as $12bn. Other large banks also announced higher shareholder payouts, but only a handful followed Morgan Stanley by increasing the size of their buyback programmes. Goldman Sachs raised its dividend to $2 from $1.25, JPMorgan Chase increased its payout to $1 from 90 cents and Bank of America boosted its dividend to 21 cents from 18 cents. Wells Fargo doubled its dividend to 20 cents, though the bank had slashed the dividend a year ago from 51 cents. Similar to Morgan Stanley, the bank said it also planned to spend about $18bn in the year starting in the third quarter to buy back its own stock.
💡2. Inflationary pressures hit record highs in June as UK businesses continued to rebound, according to a closely watched survey that showed commercial activity fell back only slightly after last month’s reopening from lockdown. The reports of rising inflationary pressures comes after annual consumer price growth hit 2.1 per cent last month, unexpectedly surpassing the BoE target and sharpening fears that rapid post-lockdown expansion could be accompanied by sharp inflation.
💡3. Hong Kong is unlikely to see a significant impact on housing demand from the growing emigration wave, according to the president of the Real Estate Developers Association of Hong Kong (Reda), joining a chorus of market observers who expect prices to continue rising this year. “I know some people are leaving, but some people are moving here to Hong Kong,” said Keith Kerr, president of Reda and a former chairman and chief executive at Swire Properties.
💡4. Deutsche Bank will be unable to sponsor initial public offerings in Hong Kong from July after the German lender failed to replace two regulated staff on time, disrupting the company’s plans to relaunch its Asia equities business. The error means the IPO sponsor licence of Deutsche Securities Asia, the bank’s regional equity capital markets division, will lapse from next month, according to a person familiar with the matter and confirmed by the lender. This could be a slow process. Banks in Hong Kong need to maintain two regulated IPO principals to be authorised as a sponsor.
————————————————
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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