Capital Markets

December 8, 2017

Our Weekly Newsletter

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At Instinctif Partners’ Financial Services Team we constantly keep our eyes peeled for the key developments taking place in the financial services space, evaluating their impact on the many businesses we represent. Here we share our picks of the week’s most interesting news, as well as our expert views.

  • Trades from Outer Space:

Could Jason Bourne satellites and cyber grasshoppers soon have the jump on market regulators? As our ability to spy on each other becomes more advanced, will those with the most powerful technology become the next generation of insider traders beyond regulators’ reach? From the Financial Times, 29 November 2017

  • Bubbling Moves:

A Yale professor argues that the rise of mass communication is to blame for market bubbles. From printing presses and tulips to Bitcoin and Twitter, chatter fuels speculation – is there an inextricable link between the media and the rise and fall of frenzied trades? From Quartz, 29 November 2017

  • Auditor’s Auditor Sharpens Its Teeth:

The UK’s market regulator is set to triple in size. In the wake of the criticism facing KPMG for its questionable reporting of HBOS’ health on the eve of its demise, the Financial Reporting Council is set to balloon and begin a more careful scrutiny of UK auditors to ensure books are not being cooked. From PYMNTS.com, 5 December 2017

  • Fintech Taking On The Establishment:

In the Bank of England’s latest banking stress test, it predicted that fintech competition could wipe £1bn off UK banks’ profits. As the Open Banking initiative approaches, traditional banks are poised to lose out to more nimble, smarter young upstarts offering tech-driven financial products. From UK Business Insider, 28 November 2017

  • One Size Does Not Fit All:

To save Britain, market rules need to be rewritten, or broken to stop benefiting the few at a cost to many. Rules are now used to hide bad business decisions and stifle innovation. Perhaps it is time to change arcane market regulations for the better. From The Times, 5 December 2017

 

UK Financial News In The 21st Century

This week we attended a breakfast briefing titled ‘A view from the Financial Times – its digital transformation and the future of financial reporting’. Robert Shrimsley, Editorial Director of the FT and former FT.com Editor, was the speaker for the day and discussed on how the publication has evolved over the years to cater to the new way people consume content.

Below are some key takeaways from the event:

  • Everyone who works for the FT works for both the paper and the website – the lines between the two are now non-existent. Almost nothing is held back and broken exclusively in the print edition. The vast majority of the time news is online first.
  • The FT will shift emphasis again on digital in the next 5 years. Robert hoped but couldn’t guarantee the continuation of the print paper. Digital is firmly the future for business news media.
  • There is still value in exclusive news but it only lasts seconds now that other digital outlets can steal your story. This is why news analysis today is key.
  • Journalists are questioning how audio and digital assistants fit into the changing consumption of news – how will products like Amazon’s Alexa can be used in today’s fast-moving landscape? Will we soon have the news read to us?
  • Research has found that social media is a big driver of fake news but in the end people will still check a news source they trust, like the BBC or Financial Times, most of the time.
  • In order to be the first to cover breaking news on a company, many smaller news outlets are already using algorithms to publish stories straight from RNS announcements. Like market trading, our newspapers are relying to black boxes to be first past the post.

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