Monthly Archives: September 2015

Turmoil and Hope -APAC, Japan & ASEAN Trends – Sept. 20th 2015

From ESCP Europe Finance Society,

By

Ludovico Buffo, Master Student

Escp Europe Finance Society

While the Asian financial storm is far from being over, the FED recently decided not to hike up the interest rates as the conditions in the global economy have changed dramatically since the last Federal Open Market Committee meeting.

 Rates

The Shanghai Stock Exchange Index (SSE) keeps maintaining its downward trend, losing up to 15% in the last 30 days, reaching the lowest value of 2927.25 in Aug 26. Following the strong financial measures adopted from the Chinese government along with a positive response from the US regarding the interest rates, analysts would have expected a slight upward change in the Chinese stock market that, however, did not happen, highlighting investors’ concerns about China slowdown and Yellen’s warnings about weaker global growth perspectives. A Fed interest rate hike would increase the attractiveness of US dollar denominated assets and thus generate capital outflows from the China and Emerging Markets towards Wall…

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FIG Coverage – Americas

From ESCP Europe Finance Society,

By

Tancredi Viale, Master Student

Escp Europe Finance Society

With the quarterly earnings season already passed away, Financial Services companies have demonstrated to be the real winners in these turbulent times. The majority of the big banks, with some “excellent” exceptions, have outpaced analysts’ estimates. Cost-cutting and business optimization have been the main drivers for the rump-up in profitability.

Starting from Goldman Sachs, this bank is the main exception in the positive momentum banks earnings are experiencing. While major business lines have reported a solid growth pace, expenses have increased dramatically. Goldman Sachs earnings were deeply affected by litigation costs that the Company accounted in legal provisions, which amounted up to $2.77 per share, or $1.48bn. The Bank is in talks with authorities to settle the misconduct in the mortgage crisis. All the major business lines have shown solid growth. Investment Banking grew 13.4% YoY, with the Bank ranking in the top positions in all major Financial Advisors League…

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RoboAdvisors or Private Bankers? How will Wealth Management change in the near future

From FutureBanks,

New Insights on Automated Wealth Management

By
Lorenzo Merlino, Master Student

FutureBanks

Virtual financial advisors gaining momentum

The term RoboAdvisors defines a wide array of online platforms that provide savers pre-set investing solutions, specific portfolios (more or less customized), whose management is entirely conducted by automated risk management algorithms. The purchase of these services can be performed, most of the times, directly online and end up straight to the client’s portfolio without the need of any human intervention.

A RoboAdvisor is thus a “virtual financial advisor”, who is able to provide advisory services in an efficient and in a cost-competitive way, leveraging on its ease of usage and on the online browsing experience for the consumer. Due to the centrality of the technological component, RoboAdvisors belong to the FinTech sector: the market where technology meets finance.

Investor assets run by RoboAdvisors are expected to soar to $2.2 trillion in 2020 from $135 billion this year, according to management consulting firm A.T. Kearney

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