Message from Coach
On this week’s market summary:
📍1. The World Bank on Tuesday downgraded its outlook for the global economy and warned the situation could deteriorate if Covid-19 infections accelerate or the vaccine roll-out is delayed. The coronavirus pandemic also has worsened the risks surrounding the rising debt load in developing nations, and it will take a global effort to avoid a new crisis in those economies, the bank cautioned. After shrinking 4.3 percent in 2020, the world economy is projected to grow by 4.0 percent this year, two-tenths lower than previously forecast, as more than half of countries were downgraded in the semi-annual Global Economic Prospects report.
📍2. Hong Kong and mainland stocks retreated at the midday break as the New York Stock Exchange whipsawed traders by planning to stick to delisting Chinese telecom giants. Tensions in US-China ties heightened after the Trump administration banned transactions on eight Chinese apps on security grounds. The Hang Seng Index fell 0.9 percent to 27,410.55 at noon, after two consecutive days of gains. The Shanghai Composite slipped 0.2 percent. The NYSE is committed to delisting three Chinese telecommunications companies if their subsidiaries – China Mobile, China Unicom, and China Telecom – are found to be affected by a US blacklist, according to a source familiar with the matter.
📍3. The People’s Bank of China has taken steps to ease financial conditions after interbank rates doubled in the second half of the year, reflecting the challenge it faces in navigating a return to normal monetary conditions. The central bank supplied more liquidity than the market anticipated in mid-December via its medium-term lending facility, through which it provides one-year loans to the banking system. The scale of a reverse repo operation in late December — another way of injecting cash into the system — also exceeded expectations, analysts said. The moves to ease banks’ access to funding come after conditions tightened in the second half of 2020 as China’s economic recovery gathered pace.
📍4. The New York Stock Exchange has backtracked on plans to delist three Chinese state-run telecoms groups, reversing a decision that had threatened to further inflame tensions between Washington and Beijing. The exchange had begun proceedings to delist China Mobile, China Telecom, and China Unicom to comply with a Trump administration executive order that bars US investors from holding stakes in companies with alleged ties to the Chinese military. But the NYSE said on Monday evening that it no longer intended to carry out the delisting’s “in light of further consultation with relevant regulatory authorities”. The bourse declined to offer a further explanation for reversing the December 31 decision, which had sent both US- and Hong Kong-listed shares in the telecom’s groups tumbling this week.
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.