Message from Coach
On this week’s market summary:
1. Westpac has agreed to pay the largest fine in Australian corporate history to settle a case linked to money laundering, in which it emerged the bank may have facilitated child exploitation by paedophiles. Australia’s second-largest lender by market capitalisation said on Thursday it had reached a deal with regulators to pay a civil penalty worth A$1.3bn ($920m) to settle a legal action over its failure to properly report millions of transactions.
2. Citigroup has closed its market making business in retail options, in a move that underscores how the boom in zero-commission trading has squeezed the profitability of the industry’s middlemen. The bank closed the business, which serves retail broker-dealers such as Charles Schwab and Fidelity, at the start of last month, according to three people with knowledge of the decision. However, Citi has maintained its market making operations for institutional investors and high- net-worth customers, the people said.
3. Growth in business activity in the UK slowed in September, according to a closely watched survey that indicated a summer economic surge was at risk from new restrictions to curb coronavirus. The IHS Markit/Cips UK flash, or interim, composite purchasing managers’ index for September fell to 55.7, from a 72-month high of 59.1 in August, as business leaders reported a fall in optimism and consumer confidence. A reading above 50 indicates the majority of respondents, from the services and manufacturing sectors, reported increased month-on-month activity.
European stocks were down across the board on Thursday on growing fears that the economic recovery from the coronavirus crisis is stalling. The benchmark Stoxx Europe 600 shed 0.8 per cent in morning trading, while the UK’s FTSE 100 fell 0.7 per cent and Germany’s Dax dropped 0.4 per cent. The Stoxx’s travel subsector hit its low for the month in early trading. The declines followed a sell-off on Wall Street on Wednesday. Warnings on the economic rebound from US Federal Reserve officials have unsettled equity investors in recent days. “The economy is recovering robustly, but we are still in a deep hole,” Richard Clarida, Fed vice-chairman, told Bloomberg Television on Wednesday.
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.