Capital Markets Corporate

August 20, 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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Millions of UK homes could be heated with hydrogen by 2030

The government has published plans for a UK-wide hydrogen economy, which could be worth £900m and create more than 9,000 high-quality jobs by the end of the decade, rising to £13bn and 100,000 new jobs by 2050. Approximately 3 million UK households could begin using low-carbon hydrogen rather than fossil fuel gas under proposals to attract at least £4bn of investment to the hydrogen economy by 2030. In addition, hydrogen could cover 20-35% of the UK’s energy consumption by 2050, providing a clean alternative to oil and gas in energy-intensive industries, power and transport. (From The Guardian, 17th August 2021)

Investment trust dividends drop for first time in a decade 

While demonstrating resilience amidst the Covid-19 pandemic, dividends from UK-listed equity trusts fell in the first half of 2021, the first decline since 2010. According to Link Group’s latest report on trusts, payouts for H1 2021 amounted to £892m which was 3.1 per cent lower than H1 2020. Further declines are expected, and the Group forecasts that full year equity investment trust dividends for 2021 will fall by 3.2 per cent to £1.79bn. Both global and European equity trusts have suffered notable declines in income generation. (From Investors’ Chronicle, 17th August 2021)

House prices soar at fastest official rate since 2004 

The average house price across the UK rose by £31,000 in the year to June, according to the Office for National Statistics. This is the fastest annual increase since 2004, with home buying accelerating ahead of the tapering of the Stamp Duty holiday. The average property in June sold for a record £266,000, a 13.2 per cent increase year-on-year, with property values becoming even more out of kilter with people’s incomes. (From This is Money, 18th August 2021)

Private capital groups soar on boom in unlisted assets  

The largest listed US private capital companies have seen their value more than triple since last year’s market sell-off. This comes as investors look to benefit from the fees they make from the boom in unlisted assets. The combined market value of Blackstone, KKR, Carlyle, Apollo and Ares increased from $80bn in March 2020 to $252bn this year. (From Financial Times, 17th August 2021)

No more cohorts: FCA says fintech sandbox is now ‘always open’ 

The Financial Conduct Authority has announced its ‘sandbox’ for encouraging development of cutting-edge financial products and services will no longer be limited to annual cohorts. Firms can apply anytime on a rolling basis, following recommendations from the Kalifa Review of UK fintech.

The regulator is also looking for more applicants trying to address diversity and inclusion issues in financial services, as well as applicants who are finding ways to help people deal with the financial impacts of the pandemic. (From Alt-Fi, 17th August 2021)

 

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