Message from Coach
*On this week’s market summary:*
▶️1. Bank of America gained hundreds of millions of dollars in trading revenue when the Texas electric grid failed in a winter storm last month, highlighting the upside for Wall Street from mayhem that knocked out power and heat across the state, industry executives and traders said. The bank’s Houston-based energy trading group had electricity contracts that soared in value when wholesale Texas power prices rose 10,000 per cent to a cap of $9,000 a megawatt-hour the third week of February. The prices were ordered by the Texas utility regulator in an attempt to bring more generation into service.
▶️2. Hong Kong has been dropped from a prominent index of the world’s freest economies, underlining growing concerns over Beijing’s tightening grip on the Asian financial centre after it introduced a national security law last year. The announcement from the Heritage Foundation, a conservative US think-tank, came as the majority of a group of 47 pro-democracy politicians were refused bail in a case that critics say shows the rapid decline of civic freedoms in the city. China’s rubber-stamp parliament also confirmed on Thursday that it would “improve” Hong Kong’s electoral system in the coming days.
▶️3. Hong Kong and China markets retreated sharply after rising at the open, amid growing concern about rising bond yields and high valuation of technology stocks. The Hang Seng Index eased 1.9 per cent to 28,540.83, after rising as much as 1 per cent at the open. It rose 0.4 per cent last week. The Shanghai Composite fell 2.3 per cent to 3,421.41, after gaining as much as 1.2 per cent, for its biggest single day decline since July 24. The CSI 300, which tracks the 300 biggest stocks in Shanghai and Shenzhen, tumbled 3.5 per cent to 5,080.02.
▶️4. One of Hong Kong’s oldest business empires, Jardine Matheson, has announced plans for a sweeping restructuring that is expected to sharply increase its market value but could expose it to hostile bids. Jardine Matheson said it would delist its second-largest unit, Jardine Strategic, in a $5.5bn buyout deal aimed at simplifying a complex, cross-shareholding structure originally set up to thwart hostile takeover bids. It controls a large proportion of Hong Kong’s prime property and major brands, including the Mandarin Oriental Hotel, real estate group Hongkong Land and supermarket operator Dairy Farm, which holds the local 7-Eleven franchise.
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.