Weak pound adds billions to company dividends

Investors in UK companies can expect to receive an additional £5.7bn of dividends this year because of the pound’s slide against the US dollar. The UK currency hit a record low against the dollar last month, and even after recovering, it is still down 15 per cent this year.

Alphabet slowdown leads to tech sell-off

Google’s parent company reported a severe slowdown in its core search ads business, leading to lower-than-expected revenue growth in the third quarter. The earnings result prompted a sell-off in tech stocks and fanned fears of an economic slowdown in the US.

Italian bank fundraising attracts ‘state aid’ scrutiny

Brussels officials are concerned that a €2.5bn fundraising at Monte dei Paschi di Siena, the world’s oldest bank, could constitute illegal state aid. The Italian treasury is buying 64 per cent of the shares in the capital raise, but under EU rules the state can only take part if all investors are subject to the same conditions.

First bitcoin ETF loses record amount in initial year

Asset manager ProShares’ Bitcoin Strategy fund had the most successful ETF launch in history when it amassed more than $1bn in its first week of trading in October 2021. One year later, it has lost more of investors’ dollars than any other ETF debut.

Wall Street banks clash over EM equities outlook

Morgan Stanley and Goldman Sachs have taken diametrically opposed views on emerging market stocks after a punishing $2tn sell-off this year. An MSCI index of EM stocks has slumped about 30 per cent since early January, reflecting a punishing decline in markets ranging from China to South Korea.

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(Source: FT, Oct., 26-2022)