Message from Coach
On this week’s market summary:
❗️1. Booming markets drove a surge in third-quarter earnings at Goldman Sachs’ trading and asset management businesses, helping the Wall Street bank to post its strongest profitability since 2010. Goldman delivered an annualised return on equity of 17.5 per cent for the three months to the end of September, its highest quarterly return in a decade. It far exceeded the “greater than 13 per cent” promised in January, when chief executive David Solomon laid out his plans to revive the 150-year-old bank’s fortunes by cutting costs and branching into new businesses such as online banking and cash management.
❗️2. When coronavirus spread beyond Wuhan, economies crashed in unison. Around the world, output sank at a scale not witnessed in peacetime. Since then an aggressive fiscal and monetary response — and successful containment of the virus in several east Asian economies, including China — has meant that the prognosis now is no longer as bleak as some had feared earlier in the year. The IMF said in its World Economic Outlook, which was released on Tuesday, that the global economy will shrink by 4.4 per cent this year — an awful figure, but not quite as bad as the 5.2 per cent decline forecast in June. The prospects of recovery, however, are far from even.
❗️3. US stocks ended the day lower after Treasury secretary Steven Mnuchin cast doubt on securing a fiscal stimulus deal before the presidential election next month. The S&P 500 dropped 0.7 per cent, erasing earlier gains, while the tech-heavy Nasdaq Composite fell 0.8 per cent. Amazon and Netflix fell more than 2 per cent, while Facebook and Adobe dropped more than 1 per cent.
❗️4. Shares in China Evergrande sank 17 per cent after the latest effort by the world's most indebted property developer to shore up its balance sheet fell flat. China’s largest developer said in a filing on Wednesday that it raised $555m from a share placement priced at a discount of 14.7 per cent to the stock’s last close — far short of its target of just over $1bn. Andy Maynard, a Hong Kong-based trader at China Renaissance, said the placement was “testament to negative sentiment for the stock and potentially the sector”, adding: “Most share placements, follow-ons, secondaries, IPOs have gone well [this year]”.
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.