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Tag: uncertainty

New U.S. sanctions add uncertainty for global banks looking to tap China market

Finance
Aerial view of Lujiazui Financial District at dusk, Pudong, Shanghai, China.Fei Yang | Moment | Getty ImagesU.S. sanctions on Hong Kong leader Carrie Lam raises uncertainty for international banks that were looking at a historic opening of the Chinese financial market.The U.S. Treasury announced Friday sanctions on the semi-autonomous region's chief executive and 10 other government-related individuals for "undermining Hong Kong's autonomy" and restricting freedom of expression. The decision generally prohibits the targeted individuals from accessing their U.S. assets and transacting with U.S. persons, including provision of funds."It is at the very least awkward for US and foreign banks wanting to take advantage of market opening in China," Michael Hirson, practice head, China and No...

Monzo’s losses double as popular UK digital bank warns of pandemic uncertainty

Finance
A Monzo debit card being used at a payment terminal.MonzoBritish digital bank Monzo said Thursday that its annual losses more than doubled and warned its ability to continue operating had become more uncertain due to the coronavirus pandemic.The start-up reported an annual post-tax loss of £113.8 million ($ 149.5 million) in its 2020 accounts, up from the £47.1 million it lost last year, amid investment on hiring, marketing and a U.S. expansion. That was despite revenues more than tripling to £67.2 million from £19.7 million.Monzo lent out a record £143.9 million, compared to £19.2 million in its 2019 results. But it expects credit losses to climb dramatically to £20.3 million from £3.9 million, with £4.1 million of that sum being set aside for a heightened default risk associated with th...
Young working professionals to cut down expenses as post-Covid world brings uncertainty, job loss

Young working professionals to cut down expenses as post-Covid world brings uncertainty, job loss

Finance
MUMBAI: As the country enters the final week of the third phase of the COVID-19-induced lockdown, public sentiment is getting into negative territories with over 50 per cent of those polled having a negative outlook on income. What is more, younger and those in the middle-income consumers are more worried about their income post-COVID, loan repayments and spending, says an international survey. According to a survey by international consultancy Boston Consulting Group, as much as 85 per cent of those in the poll are worried about servicing loans post-moratorium, while more than 40 per cent are planning to cut down spending in the next six months as they fear about their jobs and income. The survey, carried out during the third phase of lockdown (May 4-17) among 1,300 consumers in metros ...
Peter Thiel-backed digital bank N26 raises another $100 million, bracing for coronavirus uncertainty

Peter Thiel-backed digital bank N26 raises another $100 million, bracing for coronavirus uncertainty

Finance
N26's logo seen displayed on a smartphone.Rafael Henrique | SOPA Images | LightRocket via Getty ImagesGerman digital bank N26 has raised an additional $ 100 million in funding, as it braces for economic uncertainty from the coronavirus pandemic.The investment, backed by existing investors such as Chinese tech giant Tencent and Peter Thiel's Valar Ventures, is an extension to the company's Series D investment round announced early last year. It brings the total raised in that round to $ 570 million, while the company has now raised $ 770 million to date.N26 already topped up its Series D round with another $ 170 million in July. The startup's valuation remains unchanged at $ 3.5 billion despite the injection of new capital, but co-founder and CEO Valentin Stalf still believes it w...
Op-Ed: Financial advisors help clients navigate through uncertainty

Op-Ed: Financial advisors help clients navigate through uncertainty

Finance
JohnnyGreig | E+ | Getty ImagesWe are in a challenging time, facing rapidly evolving information about the coronavirus and the effects on how we work and live. Markets continue to function and are reflecting this constant change, which means greater volatility. Those circumstances don't make it easy for investors to stay in their seats.When markets are good, there's naturally a lot of energy around putting more money in. When markets are bad, the energy is often about taking money out.We've been through tough times before. Just about everyone remembers the 2008-2009 global financial crisis, even if they weren't old enough to be in the workforce at the time. That period also saw the spread of the H1N1 virus. More experienced investors may consider the tech boom and bust of the late 1990s an...