Message from Coach
On this week’s market summary:
❗️Denmark’s biggest lender Danske Bank is to cut 7 per cent of jobs as it tries to reduce costs to deal with the aftermath of a vast money-laundering scandal and the impact of negative interest rates. The lender said on Thursday that it would axe 1,600 jobs as part of its plan to become a “better bank” by 2023 by becoming more efficient. Danske is facing up to the long-term consequences of a €200bn money-laundering scandal and almost a decade of negative interest rates.
❗️US bank regulators have fined Citigroup $400m for failing to correct “longstanding deficiencies” in its risk and control systems and ordered the lender to upgrade its processes and its technology. The fine comes on the heels of news that, in August, Citi mistakenly wired $900m to creditors of one of its clients, Revlon, sparking a protracted legal fight. Last month, the bank announced Mike Corbat would retire as chief executive in 2021, several years earlier than expected.
❗️Countries could face years of negotiations to rework their debt with China as a growing number of loans run into trouble following decades of aggressive lending by the world’s largest official creditor. Chinese lenders at times lack coordination and don’t follow standard relief terms to renegotiate debt, adding uncertainty to the outcome of talks to overhaul $28 billion in loans in a number of countries, according to research by Rhodium Group, a New York- based economic and policy consultancy. An unprecedented global downturn brought about by the coronavirus pandemic is making it increasingly difficult for developing nations to repay private creditors and Chinese lenders.
❗️The economic consequences of the coronavirus pandemic will change the profile of global poverty by creating millions of “new poor” who are relatively well-educated in urban areas of middle- income countries, the World Bank has warned. According to the report, more than 80 per cent of those who will fall into extreme poverty this year are in middle-income countries, with south Asia the worst-hit region, followed by sub-Saharan Africa.
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.