Robinhood Crisis Reveals Hidden Costs in Zero-Fee Trading Model, Millennials Are Changing the Luxury Real Estate Market Biden Wants to Mend the U.S.-Saudi Alliance, Not End It.
Brexit Agreement: London’s Future as Global Financial Hub Is Unclear – Bloomberg
“At equities trading venue Aquis Exchange, 99.6% of European stock transactions shifted to Paris. Another exchange, Cboe Europe, saw 90% of that business move to Amsterdam. Billions more in derivatives trading then quit for New York, which also stands to gain from the region’s infighting”
“Bank of America Corp., JPMorgan Chase & Co., and other big companies moved staff and money to cities such as Paris and Frankfurt to make sure they can continue doing business with European clients”
“Right now, equivalence agreements between the U.S. and the EU mean New York enjoys greater access to the bloc’s financial markets than London.”
“The goal is to put the City at the heart of new financial revolutions, including Chinese offshore renminbi trading and cryptocurrencies.”
Robinhood Crisis Reveals Hidden Costs in Zero-Fee Trading Model – Bloomberg
““It’s when friction decreases that you expect much more action, more trading, so going to zero in trading fees matters,” said Stephen Wendel, head of behavioral science at Morningstar.
“We’ve made gambling on the stock market cheaper than gambling on sports and gambling in Vegas,’’ said Larry Tabb, an analyst at Bloomberg Intelligence.
“If there was not zero-fee online trading, the effect that we’ve seen the last several weeks would have been orders of magnitude lower,” said Julian Emanuel, chief equity and derivatives strategist at BTIG.
“A study published this week by researchers at Oklahoma State University and Emory University showed that commission-free trading on Robinhood not only contributes to greater volatility in stocks bought by retail traders, but also lends no predictive value on returns”
“the no-fee business model relies on a practice known as “payment for order flow.” Market makers make enough money by processing trades that they’ll pay brokerages for sending orders their way. The more people trade, the greater the revenue collected.”
Saudi Arabia’s Oil Recovery Fears Look Well Founded – Bloomberg
“there are worrying signs that the recovery in transport fuel has not only ground to a halt, but has actually gone into reverse in some key areas.”
“It’s not just air travel that’s being hit either. Private car use is also falling again in some of the major cities.”
Strengthening trade with GCC a priority after Brexit, UK says
“GCC represents “a big market for the UK, and we have a huge amount of investments coming into the UK from Gulf countries, so the relationship is very strong in terms of trade and investment.”” – Liam Fox.
“The UK has argued that the principle benefit of leaving the EU is the freedom to strike trade deals around the world.”
Millennials Are Changing the Luxury Real Estate Market – Bloomberg
“At 38%, millennials—adults born from 1981 to 1996—represent the largest share of home buyers in the U.S., according to a survey by the National Association of Realtors released last year.”
“Beginning almost immediately after the coronavirus hit, for instance, buyers began to flock to areas that offered walkability, nature, and a well-rounded quality of life.”
“Outside the U.S., the Mornington Peninsula outside Melbourne on Australia’s southeastern coast has also seen a similar influx, the report states.”
“Inventories are at near-record lows in general, and especially for the homes with the features they’re looking for,”” – Nelson.
Brace Yourself: Long-Haul Travel Might Not Start Until 2023 – Bloomberg
““It’s very important for people to understand that at the moment, all we know about the vaccines is that they will very effectively reduce your risk of severe disease,” said Margaret Harris, a WHO spokesperson in Geneva. “We haven’t seen any evidence yet indicating whether or not they stop transmission.””
“The airline group has called on the WHO to determine that it is safe for inoculated people to fly without quarantining, in a bid to bolster the case for Travel Pass. But the global health body remains unmoved.”
Biden Wants to Mend the U.S.-Saudi Alliance, Not End It – Bloomberg
“Unlike members of Congress, the U.S. president does not have the luxury of only posturing on an issue. He also has to make policy.”
“He pledged U.S. support to revive long-dormant peace talks between the Saudis and the Houthi rebels in Yemen and to continue to sell Saudi Arabia defensive weapons to protect it from drones, missiles and other threats.”
“the Biden administration fails to bring an end to the war in Yemen, the Saudis can always purchase less precise munitions from China or Russia”