GEMSinthecity_Newsletter_31 Mar-6 April 2014

8/12/2019 GEMSinthecity_Newsletter_31 Mar-6 April 2014

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Week ended March 28, 2014

Name Fridays

close

Weekly

change

Dow Jones I.A. 16323.06 -1.53%S&P 500 1857.62 0.5%

NASDAQ Composite 4152.33 -0.58%DAX - Germany 9587.19 1.94%CAC 40 - France 4411.26 1.79%

FTSE 100 6615.58 -0.32%Nikkei 225 14696.03 -2.47%

USD/JPY 102.380 0.89%USD/EUR 1.3783 1.02%USD/GBP 1.6495 0.80%

Brent Crude Oil $/bbl 108.04 0.94%Gold $/oz 1293.3 -3.02%

Mission StatementTo provide a platform for students at Grenoblecole de Management to connect and networkwith finance professionals and companies loca-ted in London. Also, to give interested studentsthe opportunity to develop knowledge of whatthe world of finance has to offer them and theroles they could play. And lastly, to assist com-

panies in the search for the right young profess-ionals.We believe we can achieve this byorganising various events with financial ser-vices firms and finance professionals in theUK, thereby building foundations for a strong

professional relationship.

Content

Should you take the CFA exam? Page 2

Grenoble Macro- Weekly wrap Page 3

Khai's Top 5

Funds cut Russian holdings after sanc-tions

Fed rejects Citi's 2014 dividend andstock buyback plans

BofA in $9.5bn settlement with regulator Investors edgy in case Rouseff loosens

her straightjacket

After annexing Crimea, Russians moveto carve up the spoils

GEMs In The City

GEM in the City (GEMITC) is GEM financecommunitys London-based society. GEMITCplays an important role for finance-orientatedstudents of GEM, because where Grenoble isfamous for its innovation-driven businesses,London is the financial capital of the world.The opportunities in the finance and internat-ional business sectors are thus plentiful. Ho-wever, the matching process between firm andstudent can be a difficult one. Therefore, ouraim is to build and maintain a professional re-lationship between our motivated students atGEM and the financial employers located inLondon to make this process a bit simpler. Onthe one hand, this is attractive to firms as it willhelp them to find their desired applicants. Onthe other, the GEM students are able to moreeasily navigate job opportunities and eventuallyfind the right fit for them.


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written before, the CFA charter is best forportfolio and wealth management, and

security research in general.If by any chance you are interested inenrolling, I would warmly recommend toread the CFA Institute website and thewebsite 300 hours, which has a lot of greatarticles to help you understand what iswaiting for you.

It is not too late to register for the Level I inDecember. The earlier, the cheaper! You

should allocate up to 5-6 months of solidstudy. The final deadline is on 17September, but you may want to register

before, as the prices increase over time.

Written by Valentin Servel

[email protected]

The situation in Crimea sprung to theforefront of investors minds at the start oflast week as sanction threats loomed amidstnews of more Ukrainian strong holds beingoverwhelmed by pro Putin militia in the

Crimean peninsula combined with furtherposturing and build up of Russian troopsalong the eastern Ukraine border. As such,the week started with equities coming under

pressure, understandably so becauseObama, Cameron and Merkel maintainedthe view that further economic and tradesanctions were still at their disposal. Theimpact was most notable in palladium asthe spot price tagged the $800 mark, with

Russia having 40% of the global market inthis commodity there is a particular

sensitivity to event risk in the region.However, by the end of the week the S&Phad moved very little as there were noelevated sanctions against Russia withappeasement seemingly apparent fromObama. Markets may not have beendeterred, but there is an air of caution as wetraded within the prior weeks range with adoji bar being formed on the weeklycandlesticks (S&P). The geopolitical

situation seems to be the most likelycatalyst for a break either side.

In the UK, inflation prints have providedthe BOE with quite the conundrum as theycontinued to slow with the latest coreinflation reading of 1.7% posting a fouryear low just as the MPC are looking to exita 0 interest rate environment. Investorswill be weary of Carneys terrible forwardguidance, but the crux of this issue is

whether the MPC are going to adhere to arigid timeline or be flexible in the decisionsthey make. With wage growth still lagging

behind, there are many who advocate thelatter.

Conversely, UK retail sales gave us a morepositive narrative as they came in greaterthan expected due to food sales, which is nodoubt music to the ears of some retailers as

Grenoble Macro-Weekly wrap


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the likes of Debenhams and M&S have hada woeful first quarter.

Eurozone manufacturing PMIs also threwanother spanner in the works with polarisednumbers between two key countries,although not in the way one might expect. Itwas France that posted a strong readingwhilst German manufacturing PMI wasnothing to write home about. Given thatFrance has been on its knees with regards toeconomic data recently, this latest readingwill garner some level optimism, however

underlying concerns are not alleviated.

Continuing with the Eurozone, marketexpectations have mounted for Super Marioand Co to take the leap and provide us withsome game changing monetary policydecisions. This comes as the ECBs

perennial hawk Weidmann said he wouldbe willing to open the drawbridge forquantitative easing if inflation continued to

deteriorate. Considering that is exactly whathappened with German CPI lower thanexpected and Spain giving us negativereadings, the case for some form a stimulusis substantial. Therefore, the focus of nextweek will be the ECB meeting, if there issome form of stimulus the next pertinentquestion would be regarding the mediumthe ECB use. There are several options onthe table and it will be interesting to see

how the ECB navigates.Written byRon Sen

[email protected]


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Meet the City News Team

Name Function Major GGSB Contact

Valentin Servel Co-president London MSc Finance [email protected]

Sam Sharland Co-president London BIB 1styear [email protected]

Ron Sen Editor London BIB 2n year [email protected]

Abdurrahman ztrk Designer London MSc Finance [email protected]

Documents

GEMSinthecity_Newsletter_31 Mar-6 April 2014