Message from Coach
*On this week’s market summary:*
▶️1. Citigroup revised down its fourth-quarter earnings by $323m after suffering a loss in its legal battle to recoup funds it accidentally sent to creditors of its client Revlon. The US bank had hoped to claw back $500m it mistakenly sent to lenders to the cosmetics company, but a federal judge shot down that bid on February 16. Citi said on Friday that it had retrospectively added $390m of operational expenses to the fourth quarter’s accounts to cover “operational losses related to certain legal matters” which the bank received “new information on” after the end of the year.
▶️2. China’s economic recovery continued in February, but at a slower-than-expected pace, with all major sectors posting their lowest growth rates since last spring. The data encompasses the Lunar New Year holiday period, during which economic activity usually slows. But a spike in coronavirus infections in northern China in January might have depressed activity in February more than usual, especially in the service sector, after the government urged workers not to return to their hometowns for the holidays to avoid spreading infections.
▶️3. A Chinese property developer backed by the country’s largest insurance group has defaulted on a $530m bond in the latest test for the country’s debt-laden real estate sector and the international investors backing it. The failure of China Fortune Land Development to repay the bond, investors in which include BlackRock and HSBC, comes against a backdrop of mounting pressure from Beijing on China’s biggest developers to reduce their debts. It follows a spate of corporate defaults late last year that sent shockwaves through the country’s $15tn onshore bond market.
▶️4. China’s top banking regulator has warned of the risk of bubbles in international markets and within the country’s own real estate sector, in the latest sign of mounting concerns over elevated global asset prices. Financial markets in Europe and the US are out of sync with their economies and fuelled by monetary and fiscal policy, Guo Shuqing, chairman of the country’s banking and insurance regulatory commission, said on Tuesday in comments that pointed to a potential spill over into China’s financial system.“China’s market is now highly linked to foreign markets and foreign capital continues to flow in.”
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.