Our Weekly Newsletter
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.
UK’s green economy four times larger than manufacturing sector
New analysis has found that the UK’s low carbon economy is now worth more than £200bn, four times the size of the country’s manufacturing sector. From wind turbine manufacturers to recycling plants, more than 1.2m people are employed in the wide-ranging green economy. On top of this, growth in this sector is expected to accelerate in the coming years. (From The Guardian, 10th August 2021)
Abrdn buys Rothschild-backed robo-adviser in wealth shake-up
Abrdn has purchased Rothschilds-backed robo-adviser and wealth platform Exo Investing as part of its reported overhaul of its private client business. It is reported that this scaleable service comes at an important time in the industry, where there is a downward pressure on fees, evolving customer expectations and increasing regulatory requirements. (From Citywire Wealth Manager, 10th August 2021)
Boom in stock market listings boosts the London Stock Exchange
The recent boom in stock market listings from groups including Deliveroo, Dr Martens and Moonpig has helped boost the fortunes of the London Stock Exchange (LSE) group, which saw profits almost double in the first half of the year. The LSE saw the largest number of new issues of shares since 2014, over half of which were from tech companies. Shares in the Exchange jumped 5% to the top of the FTSE 100 index of blue-chip firms, after the group reported a 4.6% rise in revenues to £3.4bn and a 94% jump in pre-tax profit to £510m. (From This is Money, 6th August 2021)
Women face £27,000 pension black hole due to pandemic
The divide between the size of men and women’s pensions has widened by £27,000 as a result of the pandemic, with women now facing working years later to enjoy the same retirement. Women’s pensions have become £183,936 smaller than men’s on average, according to a report by lender More2life and the Centre for Economics and Business Research. It is estimated that it would take women an extra 14 and a half years of work to make up the difference, despite women contributing a larger percentage of their income to their nest eggs. (From The Telegraph, 10th August 2021)
How would a Bank of England digital currency work?
With the use of cash dwindling, the UK’s central bank is investigating issuing a digital currency due to fears that the costs of transactions in sterling might leave the currency vulnerable to stablecoins. Given this could undermine financial stability in Britain and the Bank of England’s ability to set interest rates to control inflation, the BoE and Treasury are looking into developing a central bank digital currency of its own for the public’s day-to-day use. (From Financial Times, 9th August 2021)