Investors have grown ever more optimistic about the future of capital markets, despite geopolitical turmoil from the Britain’s decision to leave the EU and France’s tumultuous election. Since Sunday’s election in France where Macron the centrist emerged victorious over his far-right rival Le Pen, market volatility has begun to quell as thoughts of a major market sell-off have all but died amidst the relatively neutral minded Macron showing support for France in the EU. As it stands the CBOE Volatility Index, VIX is at its lowest level since 1993, while both the S&P 500 and Nasdaq composites hit new highs Monday.
Barclay’s net profit fell by more than 50% in the first quarter of 2017, on account of massive costs attributed to the shedding of its African business and less than stellar performance from its investment banking services. This loss comes amidst weak trading revenues as a result of diminished volatility within markets that had collapsed trading spreads. In addition, market uncertainty within the UK coupled with Theresa May’s initiatives to remove the UK from the EU official have led to a decline in the British Pound and fixed income yields.
Trump’s tax proposals show signs of creating massive deductions for both middle and lower income Americans, by doubling the standard deductions on dependants and protecting write-offs for both homeownership and charitable gifts. This, in turn, should allow more Americans to diminish their tax bracket and retain more of their earnings, enabling them to spend far more money on goods and services, which should bolster the nation’s economy.
After filling out a form to participate initially as a volunteer for Donald Trump’s transition team, former BlackRock Inc. retiree Craig Phillips emerged as a central figure in Mr. Trump’s understaffed Treasury Department, giving input on how best to deregulate the financial sector while serving as a conduit between the White House and the many brilliant minds that populate the financial industry.
Independent centrist Emmanuel Macron won the first round of voting Sunday, edging out the right-wing nationalist Marine Le Pen. France’s election on Sunday served to highlight the fatigue felt by voters, who knocked off leftist Jean-Luc Mélenchon and conservative François Fillon from the running, in favor of relative political outsiders that have distanced themselves from the traditional political landscape. After these results, investors began pouring money into stocks and the Euro early Monday as renewed confidence by the election results served to quell concerns about the future of the Eurozone.
Wells Fargo & Co. may soon face a rather rocky shake up in their corporate office, as shareholders vote to oust many of the bank’s directors amid continued backlash following the company’s sales scandal. As such, bank executives have been scrambling to meet with key investors prior to their annual shareholders meeting on April 25, in order to secure their seat by possibly appealing to disgruntled investors seeking a change.
As the global economic landscape begins to increase in volatility amid Europeans tensions over seceding from the EU and North Korea antagonizing the world with threats of nuclear conflict, oil producer have contemplated the possibility of continued production halts in an effort to raise oil prices to around $60 a barrel, up from the current $53.18 as of 4/17/17.
Goldman Sachs Group Inc. has long stood as the epitome of the financial sector, representing both scorn and envy for the manner in which they generate profits as well as the amount they are capable of generating year after year. The firm has been responsible for creating markets between counterparties, financing the development of skyscrapers and providing investment banking services; but most recently Goldman has been winning in the credit market on the backs of consumer credit scores
As the rubble and ash of the financial crisis of 2008 began subsidizing, Chinese banks began lending tremendous volumes in a bid to stimulate economic growth, alongside state-backed initiatives targeted at increasing infrastructure spending both domestically and abroad. For banks, financing President Xi Jinping’s infrastructure initiative known as “One Belt, One Rose,” represent another cash project with promises of greater profitability
The year of 2016 stood as a horrendous year for active fund managers, with long/short equity funds posting abysmal returns that trailed the S&P 500 index by a considerable margin. The slump has even infiltrated a handful of prominent hedge funds with a track record of performance the likes of Steve A. Cohen and Bill Ackman, who saw little upside last year on account of minimized volatility and the emergence of more sophisticated investing techniques employing higher level mathematics.
As more and more individuals begin to withdraw from their retirement accounts early, many warn of the catastrophic impact that early withdrawals have on the overall worth of U.S. retirement portfolios nationwide, citing a potential 25% drop in asset value according to economists at Boston College’s Center for Retirement Research.
Treasury Secretary Steven Mnuchin urged Congress on Friday to raise the federal debt ceiling while opening the doors for negotiating proposed changes to the tax code. At an event in Washington hosted by the news site Axios, Munchin commented on the promise of a tax bill being passed in both the House and Senate, noting that a tax plan would be far easier to push through congress than the effort to repeal and replace the Affordable Care Act was