Inflation dynamics across developed economies are diverging. US inflation data has come in “hot” so far in 2024, but inflation in Europe has eased, falling short of expectations. While the Fed is opting to look through the data for now and sticking to its guidance for policy easing to start this year, any further bad data will test the Fed and the markets. The ECB appears to be facing no such dilemma, with easing expected to start in earnest in June, though the divergence itself is a potential obstacle.

Since the launch of ChatGPT-3 in June 2020, AI has captured the public imagination in a manner like no technological development since the Internet. The widespread availability of ChatGPT-3 and subsequent enhanced versions, along with a constant stream of other AI products coming to market, seem to be heralding the dawn of an AI-powered economy and society. The reaction has been mixed, with optimism regarding the productivity gains that AI brings tempered by fears about the disruption and displacement of vast swathes of the economy.

This article delves into the impact of ETFs on Bitcoin's price, explore previous instances of price surges due to ETF expectations, analyze the recent launches of Bitcoin ETFs, and discuss other factors contributing to Bitcoin's recent surge.

Toward the end of 2023, two US-based broker-dealers were subjected to multi-million dollar penalties levied by the Financial Industry Regulatory Authority (FINRA) on grounds of failure to provide “best execution” to their customers. The timing of these sanctions coincided with the introduction by the Securities and Exchange Commission (SEC) of Regulation Best Execution (Reg NMS Rule 606) – the first regulation specifically targeting best execution, as the SEC increases its scrutiny of the actions of broker-dealers in light of their customer obligations.

The world increased its global renewable energy capacity in 2023 by around 500 gigawatts (GW) to over 4,000 GW, according to the International Energy Agency (IEA). While this rate of growth in capacity (50% higher than in 2022) – the fastest in two decades – appears impressive, the same agency warned that the increase is insufficient to achieve last year’s COP28 goal of tripling renewable power capacity by 2030.

The imminent launch by the Securities and Exchange Commission (SEC) of a T+1 settlement regime for US securities is set to reduce risk but also pose challenges – especially for market participants and regulators in other jurisdictions that, for the time being, retain a longer settlement cycle and may be forced to follow the US lead in due course.

Amid strong signs that the aggressive tightening cycle implemented by monetary authorities to combat inflation may have run its course – with interest rates set to head lower later this year – markets are jubilant. However, some central bankers and economists caution that these celebrations may be premature.

As the year-end approaches, the focus of market strategists and economists is on the risks to the global economy and markets in 2024. Key potential sources of risk for the global economy include fallout from China’s real estate crisis, commodity price volatility, persistent inflation, and ballooning government deficits. For the global banking sector, key risks include liquidity/funding risk and one less widely talked about – outsourcing risk.

Exchange-traded funds (ETFs) are one of the major financial innovations of recent decades, their growing popularity reflected in an ever-rising share of assets under management. Global ETF assets hit the USD 10 trillion mark this year, of which the US accounts for the vast majority (over USD 6 trillion). But not all ETFs are the same and ongoing expansion of the product offering has come with increased risk.

The response of central authorities to the pandemic was decisive – reflationary policies that injected massive amounts of money into both the financial system and the real economy, turbocharging credit growth and asset valuations. However, the unintended consequence of all this stimulus was an unwelcome surge in inflation, exacerbated by the energy price shock caused by Russia’s invasion of Ukraine in February 2022. High and persistent inflation forced a sharp shift from a highly accommodative monetary policy stance to aggressive monetary tightening. These measures have already caused considerable stress in markets, with potentially much more to come.

For at least a decade, private assets – equities, credit, real estate, and other alternative assets that are not publicly traded – had been experiencing a boom, driven by the growing popularity of alternative assets after the global financial crisis of 2007-2009 and a broad bull market in asset prices, underpinned by extraordinarily low interest rates. While the relative performance of alternative assets was mixed, they did well in absolute terms, and the period was highly lucrative for alternative asset managers who charge higher fees than more traditional managers. But the private asset business is now beset by a number of headwinds set in motion by higher interest rates.

Most Private Bankers (with Entrepreneur clients) and Corporate RDs (CEO & CFO) feel unable to engage their clients on Corporate Finance. Thus, failing to stand out from the crowd, and missing out on potential lucrative fees.  Intuition has successfully delivered workshop programs that combine the core skills (technical and behavioral) for bankers to gain the confidence required.  In this podcast, you'll learn from our Co-Program leads Richard Clayton and Katharine Pons what it takes to succeed.

The announcement of new proposals – referred to as the “Basel III Endgame” – to bring the regulatory capital framework in the United States into line with the final provisions of Basel III is well timed following well-publicized instances of the vulnerability of the US banking sector earlier in the year.

The road to net zero is a complicated journey with multiple diversions, forks, and confusing terrain, not least exemplified by the contention that it can be achieved while actually increasing fossil fuel production.

“Higher for longer” is a mantra with which observers of the global interest rate regime have been familiar with for some time. As central banks worldwide remain resolved to stay the course of rate rises to counter obstinate inflation, so the effects of ‘normalized’ rates are beginning to bite in the form of rising levels of corporate defaults.

The recent statement by the CEO of one of the world’s largest asset managers that henceforth he would stop using the ‘weaponized’ term ‘ESG’ is clearly a consequence of a backlash against ESG investing that has been building for years.

Central bank digital currencies (CBDCs) have been characterized as a solution in search of a problem, but central banks seem resolute in their ultimate adoption, in spite of implied threats to commercial banks and financial stability.

It is more than a decade since open banking arrived on the scene to a reluctant banking sector. That is just one reason why it has yet to reach its potential but it is in less developed markets where its impact promises to be revolutionary.

What are green bonds and what are the different types of green asset?

The spike in interest rates over the past couple of years has transformed the banking landscape and placed immense pressure on individual institutions, leading to dramatic rescues in the US and Switzerland, and raising the dual spectres of systemic failure and a credit crunch.