Markets under pressure as ‘Trump bump’ falters

Global markets recede as the so-called ‘Trump bump’ runs out of steam Despite share prices climbing sharply on the back of last November’s surprise election victory by Donald Trump, the fabled ‘Trump bump’ appears to be running out of steam as Wall Street signals its disapproval over the president’s failure to secure support for his most prominent pre-election pledge. Trump’s disappointment over his inability to pass the repeal of Obamacare through Congress was mirrored by tumbling US shares, as the market wobbled over the prospect of the administration’s power to deliver on a raft of growth-boosting measures, including a comprehensive package of tax cuts. Read more…

Oil prices soar as Opec deal nears agreement

Opec agrees deal to cut supplies in Vienna talksOil cartel Opec has agreed to cut supplies, causing crude prices to soar to the $50-a-barrel mark. Opec pumps around a third of the world’s oil, which makes the commitment to cut production by around 4% – the equivalent of 1.2m barrels a day – made headline news on the markets. Cartel members have been allowing output to rise over the last two years in a bid to damage the profits of US shale and other high-cost producers. Immediately after the news, the S&P 500’s oil and gas exploration and production index — mostly comprising US shale companies — rocketed 10.8 per, with almost all US energy companies benefiting from the outward ripples. Read more…

Will London lose its ranking as the world’s financial capital post-Brexit?

London is the financial capital of the UK but will it maintain its appeal after Brexit?The race is on to be the new London

June’s surprising referendum result has put the UK on track to leave the European Union, at the same time sparking speculation that its capital city will experience a mass exodus as overseas-owned banks seek to secure their trading position within Europe. Some organisations already have a foothold in mainland Europe and may be prepared to adopt a ‘wait and see’ approach before jumping ship. But if London does lose its passporting arrangements, which European cities are in line to seize its banking crown? Read more…

Former Barclays bankers jailed for Libor fraud

Former Barclays traders handed lengthy jail terms for Libor riggingManipulating benchmark rates for gain

Four former Barclays bankers have been handed down jail time following a three-month trial at Southwark Crown Court in London, England. The charges related to conspiring to fraudulently rig global benchmark interest rates between 2005 and 2007 and the convictions represent a victory for the Serious Fraud Office (SFO), which has been pursuing investigations into the Libor scandal for some years but has achieved just one other successful prosecution against six acquittals. Two more Libor-fixing cases by other former Barclays bankers are still under investigation. Read more…

What’s a Brexit and what would it mean for the US?

How does speculation over Britain’s potential exit from the EU affect the US?British exit from EU could affect US markets

Brexit is a term that may well be unfamiliar to many Americans, although there could be repercussions down the line, should the UK vote to leave the EU in the June referendum. Britain’s prime minister David Cameron has been trying to renegotiate key agreements with the EU to improve its position within the union. But with US interests closely connected to those of the UK and the outcome of the vote far from certain, it’s worth paying attention to proceedings. Read more…

Hound of Hounslow arrested

 Hound of Hounslow arrested for helping to cause 2010 flash crashThe Hound of Hounslow

In a drama worthy of a movie script, a solo British trader has been arrested for his part in allegedly triggering a multi-billion-dollar US stock market crash from his parent’s west London house. Navinder Singh Sarao, alias ‘the Hound of Hounslow’ is currently being held at the request of US authorities investigating his involvement in the 2010 ‘flash crash’ which sent shockwaves through in the world’s biggest stock market. But how did it happen and why is the Department of Justice so keen to make an example of Sarao? Read more…