Message from Coach
📍1. China Construction Bank has partnered with a digital exchange to launch an offshore bond that relies on blockchain in a sign of rising interest in the technology from the country’s vast banking system. The deal, which aims to raise up to $3bn in total, will allow investors to buy digital tokens that are backed by deposits at the bank’s branch in Labuan, an island tax haven in Malaysia. The tokens will be available for purchase by ordinary investors on an exchange in the territory that specialises in digital assets and can be traded using either dollars or bitcoin.
📍2. The UK economy grew at its fastest pace on record in the third quarter, but the recovery was weaker than in the US and the eurozone and remains threatened by the latest lockdown restrictions. UK economic output increased by 15.5 per cent in the third quarter from the previous three months, the fastest pace since records began in 1955, according to data from the Office for National Statistics. Despite the rebound the economy remained 9.7 per cent smaller than it was in the final pre-pandemic quarter of 2019. The UK’s economy has contracted more dramatically than the US and the eurozone, where output from July to September was 3.5 per cent and 4.3 per cent lower respectively than in the last three months of 2019.
📍3. Sweden’s economy has been harder hit by the Covid crisis than is reflected in the latest official forecasts, according to the governor of the Riksbank, Stefan Ingves. “The recovery seems to be a little slower than we initially thought,” Ingves said in an interview in Stockholm on Wednesday. “It is extremely difficult to assess how long this will take.” After a summer during which the pandemic seemed to be receding, infection rates have again started to spike as winter approaches and temperatures drop. In Sweden, the government is now resorting to tighter measures than were used in the spring, in an effort to fight back the virus.
📍4. US technology stocks rallied on Wednesday as trades driven by optimism over Pfizer- BioNTech’s experimental Covid-19 vaccine showed signs of reversing. The technology-focused Nasdaq Composite index gained 2 per cent, outpacing the broader S&P 500, which closed higher by 0.8 per cent. US financial stocks, which are viewed as a bellwether for economic recovery trades, were among the worst performers on the S&P 500. In the previous two sessions, exuberance about the vaccine had prompted a sell-off in tech shares and lifted economically sensitive sectors such as banks and travel. That theme was now fading, said Peter Dixon, senior economist at Commerzbank, as investors realised shifts towards homeworking and online shopping were here to stay.
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.