Revisiting Beta: How well has Beta predicted returns? September 7, 2021 | City Talk After the capital asset pricing model (CAPM) was developed in the 1960s and 1970s, financial researchers started to test how well this theoretical model actually worked in the real world. Amid expanding computing power and greater data access, the 1980s became a critical era for gauging CAPM’s validity as analysts explored beta’s effectiveness in anticipating [...]
Shell and BP: why we’re hopeful for a sensible transition to renewables September 6, 2021 | City Talk The devastating effects of unchecked global warming were laid bare by this week’s landmark report from the Intergovernmental Panel on Climate Change (IPCC). UN secretary-general António Guterres described the report’s findings as “a code red for humanity”. The world’s major energy companies were already on the front line of the climate change battle, but following this [...]
Receding tapering fears propel FTSE 100 to three-week high September 6, 2021 Waning fears over central banks in developed economies scaling back monetary stimulus measures helped to propel London’s FTSE 100 to its highest level for three weeks today. The capital’s premier-index gained 0.71 per cent to hit 7,189.00 points heading into the final hour of trading. The blue-chip index was led higher by advertisers and broadcasters [...]
Dax operator announces raft of additions as German blue-chip index braces for expansion September 4, 2021 The operator of the index of leading German companies has announced a raft of new additions as the blue-chip index braces for its biggest ever shakeup. Carmaker Porsche and sportswear brand Puma are among the beneficiaries of the Dax expanding from 30 to 40 companies in just two weeks’ time. The expansion of the Dax [...]
Weak US jobs growth tempers Wall Street September 3, 2021 A weaker-than-expected US jobs report for August weighed heavily on Wall Street’s main benchmarks today. The S&P 500 slipped 0.09 per cent to 4,532.82 points, after closing at a record high yesterday. The Dow Jones lost 0.11 per cent to hit 4,531.09 points. The tech-heavy Nasdaq provided some relief on Wall Street, rising 0.12 per [...]
City PM TV: A market snapshot September 3, 2021 Following Powell’s dovish speech at Jackson Hole last week, markets have been re-pricing the liquidity environment. In particular, the dollar has been notably weaker, commodity prices have rallied, and equities have pushed out to new highs. In the US that’s been most marked in the S&P500 and the NASDAQ100. The key question therefore, at this [...]
US stocks scale to new heights … again September 2, 2021 Wall Street’s main benchmarks scaled to new record highs once again today, as investors brace for an expected bumper jobs report tomorrow. The S&P 500 and the tech-heavy Nasdaq both hit new peaks today, but pulled back slightly heading into the early afternoon session. The former was up 0.38 per cent to 4,541.45 points and [...]
Deutsche Bank regains ability to sponsor Hong Kong IPOs with new hires September 2, 2021 Deutsche Bank AG has won back its ability to sponsor IPOs in Hong Kong after it temporarily lost the right in June when two employees left without replacements lined up, according to Bloomberg who first reported the news. The German bank hired three new senior staff and added Derek Chung, Ian Long and Albert Chang [...]
Morrisons added to FTSE 100, Just Eat booted from blue-chip index September 2, 2021 British supermarket chain Morrisons is joining London’s premier FTSE 100 index, while takeaway delivery service company Just Eat Takeaway.com has been booted from the benchmark of blue-chip stocks. Engineer Weir Group will also leave the FTSE 100, while defence technology company Meggitt will be added. Meanwhile, on the index of mid-cap companies, the FTSE 250, [...]
Q&A: Why are heat pumps so important for the energy transition? September 2, 2021 | City Talk The world is now in the early stages of the transition from using fossil fuels, such as gas, to more sustainable power sources as part of the battle against climate change. Many countries have now set targets for achieving net zero carbon and the phasing out of internal combustion engine cars and the switch over to electric [...]
