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.
Demand for advice rises as investors seek guidance
Growing demand for advisory services following the pandemic has ignited a race among asset managers to acquire customers needing help to navigate volatile markets. New share trading account openings have surged over the past year, against a backdrop of strong market gains and central bank support stimulus measures that have kept interest rates low, increasing the risk tolerance of some retail investors. The investment climate has also spurred demand for financial advice, via robo services as well as hybrid models that combine technology with human advice. (From Financial Times, 13th September 2021)
Stock market pullback likely by year end, Deutsche Bank survey finds
More than two-thirds of investors are anticipating a stock market pullback before the end of the year, amid concerns regarding growth prospects and the Covid-19 Delta variant. According to a poll of over 550 global investors by Deutsche Bank, an equity correction sometime before 2022 is an overwhelming consensus now among this cohort, with 58% forecasting a drop of between 5% and 10%. Respondents said the possibility of new Covid-19 variants that bypass vaccines pose the biggest risk to market stability, closely followed by higher-than-expected inflation. (From The Guardian, 13th September 2021)
Job vacancies rise above one million in new record
Job vacancies have hit a record high as UK economic recovery continues, according to the Office for National Statistics. The number of vacancies in the three months to August rose above one million for the first time since records began in 2001. Figures also showed employee numbers were back at pre-Covid levels in August, and payrolls for the month exhibited another monthly increase of 241,000 to 29.1 million. (From BBC, 14th September 2021)
Britons’ rent bill falling as Generation Z refuses to fly the nest
New data has found that landlords are struggling to replace millennials with younger renters who are increasingly choosing to stay living with their parents for longer. Renters paid £57.3bn to landlords this year, but despite rising rents the total bill has fallen. The rise of remote working and better lending conditions for first-time buyers where rates continue to plummet means that there are fewer renters, according to estate agency Hamptons. (From Telegraph, 13th September 2021)
UK firms bank on London’s status as top financial centre
More than two-thirds of the UK’s financial firms think London will retain its status as one of the world’s leading financial centres after Brexit. It has been argued that Brexit cast doubts over whether the UK would remain a leading global financial hub, but City firms have been bullish about the future of their business. This is according to findings from an annual sentiment survey of more than 100 banks, asset managers and insurers conducted by Lloyds Bank. (From City AM, 13th September 2021)