Message from Coach
*On this week’s market summary:*
📍1. JPMorgan Chase, Citigroup and Wells Fargo have released a total of more than $5bn of pandemic-era loan loss reserves in a sign of their optimism for the economic outlook even as the US reels from the latest wave of Covid-19. The move helped three of America’s biggest banks end the year on a high and reflects the lenders’ confidence that their clients will make good on debts despite the fallout from the pandemic. “It’s not like we’re bragging, we’re not,” said Jamie Dimon, chief executive of JPMorgan, which reported a 42 per cent jump in fourth-quarter earnings after releasing almost $3bn it reserved for loan losses at the height of the pandemic.
📍2. China’s new rules for vetting foreign investments on national security grounds came into effect on Monday, with lobby groups warning that it could put a dent in Beijing’s plans to attract more international investors. The new regulations formally announced last month, are seen as retaliation for the Trump administration’s ongoing blacklisting of hundreds of Chinese firms on national security grounds.
📍3. Hong Kong seems to have fallen out of favour with global real estate investors, even as a greater number are either keeping or increasing their allocations for the Asia-Pacific region this year, various surveys have found. Hong Kong declined in a survey conducted by CBRE as well. The city ranked 14th while Tokyo, Singapore and Seoul were the most attractive investment destinations, according to the 2021 Asia Pacific Investor Intentions Survey by the global commercial real-estate services company, which polled more than 490 investors based in the region in November and December last year.
📍4. Equity funds that invest in the fossil fuel industry ranked as the worst-performers of 2020, with energy products from Brookfield, BlackRock, Goldman Sachs and Vanguard losing at least 30 per cent after the oil price floundered during the coronavirus pandemic. Saudi Arabia’s oil price war in March followed by a dramatic decline in demand for fossil fuels as countries locked down in response to Covid-19 left many energy funds reeling. The $1bn Center Coast Brookfield Midstream, a US product, was the worst-performing actively managed equity fund globally last year, down almost 36 per cent. BlackRock’s BGF World Energy, which is based in Europe, lost almost 35 per cent, according to figures compiled by Morningstar, the data provider. The Goldman Sachs MLP Energy Infrastructure fund and Vanguard’s $4bn Energy fund were both down about 31 per cent.
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.