Capital Markets Corporate

April 30, 2021

Our Weekly Newsletter

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Across Instinctif Partners’ Financial Services team, we are always keeping an eye on the key developments taking place across the sector to evaluate their impact on the many businesses we work with. Here we share our picks of the week’s most interesting news, and our expert views.

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Shopping trips set to fuel economic rebound  
Britain is set for a sharp snap back in spending by shoppers as restrictions ease, according to Deloitte, with shopping topping the list of leisure activities people are most likely to do after lockdown. Separate research suggested that the UK’s economy will grow at its fastest rate on record this year, helped by the rebound in consumer spending. The forecasting body has upgraded its 2021 growth forecast from 5% to 6.8%, which would mark the fastest rate seen since ONS records began. (From BBC, 26 April 2021)

City of London plans 1,500 new homes for post-pandemic recovery  
The City of London is planning to convert offices left vacant after the pandemic into hundreds of new homes as part of a recovery strategy to be launched by the capital’s financial district. The City of London Corporation has set a target of adding at least 1,500 residential units by 2030 through developing new schemes and converting old buildings. The Corporation has also published proposals to boost its cultural and creative industries, which could see low-cost, long-term leases in empty buildings being offered to creative sector tenants. (From Financial Times, 27 April 2021)

Crypto assets face crackdown from HMRC 
Surging interest in cryptocurrency assets is likely to prompt the tax authority to intensify scrutiny on its links to organised crime, according to accountancy firm UHY Hacker Young. Organised crime is increasing its usage of digital and cyber space to conduct criminal activities, targeting crypto assets as a means to launder money. As a result, HMRC could order information on crypto holdings be turned over from taxpayers it suspects of tax evasion and avoidance. (From City A.M., 28 April 2021)

Increasing reliance on inheritance set to widen wealth gap 
Younger generations are likely to be increasingly reliant on their inheritance to move up the wealth distribution, according to a new report from the IFS. Increasing levels of wealth held by older generations and poor income growth for younger generations are compounding to drive more severe inter-generational economic divides. (From Accountancy Daily, 26 April 2021)

Retirees turn to riskier assets amid low interest rates 
Retirees are turning to riskier assets to lock in returns to fund later life amid a historic low interest rate environment, a new poll has revealed. The UK’s sustained low interest rate environment is changing sentiment toward riskier assets such as equities among retirees and is now having a direct impact on retirees’ investment decisions. Governing bodies warn older consumers could lose a large proportion of their retirement resources if they invest in assets or investment products that are not protected by the Financial Services Compensation Scheme. (From Money Marketing, 28 April 2021)

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