Message from Coach
On this week’s market summary:
📍1. Société Générale returned to profit in the third quarter, helped by a better performance from an equity derivatives business that endured a bruising first half of the year as the pandemic upended financial markets. The French bank reported net income climbed 1 per cent to €862m in the third quarter, almost double analysts’ forecasts. Revenues fell 2.9 per cent to €5.8bn, but that also surpassed expectations. SocGen’s second-quarter loss of €1.26bn — its worst showing since the losses associated with rogue trader Jérôme Kerviel in 2008 — had heaped pressure on chief executive Frédéric Oudéa, the longest-serving boss of any large European bank.
📍2. Sweden’s economy grew less than expected in the third quarter, when a lull in the virus during the summer months allowed businesses and households to return to a semi- normal existence. Gross domestic product grew 4.3% from the previous quarter, according to an indicator published by Statistics Sweden on Thursday. Economists surveyed by Bloomberg had predicted 5% growth. GDP shrank 8.6% in the second quarter. The quarterly increase was largely driven by rising exports of goods, Statistics Sweden said. The kroner edged lower against the euro.
📍3. Services companies in Italy and Spain suffered a fresh fall in activity last month as restrictions to contain the second wave of the coronavirus pandemic hit businesses, according to a widely watched business survey. The IHS Markit flash services purchasing managers’ index dropped in both countries, with companies reporting sharp declines in demand and activity as a result of the pandemic, data released on Wednesday showed. The Spanish index was slightly better than most economists expected but still fell 1 point to a five-month low of 41.4 in October. Italy’s index fell below expectations to a four-month low of 46.7, down from 48.8 in the previous month.
📍4. Indonesia’s unemployment rate surged to the highest level since 2011, as the pandemic causes 29 million people to lose their jobs or move to part-time work. The jobless rate rose to 7.07% as of August, from 5.23% a year ago and marking its highest level since the 7.48% seen in 2011, according to the nation’s statistics agency. The number of people without work expanded by more than a third to 9.8 million as the pandemic pushes Southeast Asia’s largest economy into its first technical recession in two decades. Overall the pandemic has impacted 29 million Indonesians, or close to 15% of its labor force. On top of those who lost their jobs, about 9.5 million exited full-time employment, while those working fewer than 35 hours a week increased by 9.2 million.
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.