Investment Banking News

Investment Banking News

Government won’t regulate TikTok investment advice

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

The government will not be stepping in to police social media influencers giving investment tips or to stop retail investors from having a crack at cryptocurrencies, the minister for financial services has said. Speaking at the Stockbrokers and Financial Advisers Association Conference this week, minister for financial services Jane Hume noted the rise of TikTok influencers spruiking stock tips and crypto assets. The global reach of individuals on social media and the ability for consumers to invest instantly through online platforms could prove concerning for those in the investment industry, but ultimately the minister believes it all is key to “removing the friction makes the economy far more productive”.

“With lower costs and easier access, retail investors with limited technical knowledge and experience will continue to enter financial markets,” Ms Hume said. “Now, sometimes, they may make bad investment decisions. And they may sell at the first sign of losses, speculative bubbles – and doesn’t matter whether it’s in tulips or in equities – [they] do correct themselves in time. While it’s frustrating for investment professionals to watch, at some point, we have to let people make their own decisions.

The rest of this article can be found at investordaily.com.au.

Bitcoin’s growing energy problem: ‘It’s a dirty currency’

Posted by Anton Murray Consulting on . Posted in Investment Banking News

Financial Times

On the shores of Seneca Lake in upstate New York, a private equity company has bought a decommissioned coal power plant and converted it to burn natural gas. It then switched it back on to become what it describes as a “power plant-cryptocurrency mining hybrid”. Greenidge Generation Holdings, the company behind the plant, plans to go public later this year, saying it expects to become “the only US publicly listed bitcoin mining operation with its own power source”.

In a presentation to investors, it says its direct line in to the Empire Pipeline system for gas allows it to produce coins for just $3,000 a pop — a hefty margin considering that even after a heavy recent drop on a possible crackdown from Chinese regulators, they sell for about $40,000. The company says it is proud of shifting away from coal. It is looking to buy more power plants and vastly scale up operations. Climate activists, however, are aghast that fossil fuels will be burnt to mine crypto, and are pushing regulators to clamp down on this and other similar projects to prevent a surge in greenhouse gas emissions.

The rest of this article can be found at ft.com.

AMP appoints Bank CEO

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

AMP has announced the appointment of AMP Bank’s new managing director as it looks to execute on its three-year turnaround strategy. Sean O’Malley will lead AMP Bank permanently after taking the position in an acting capacity in February. He will be responsible for delivering on the AMP Bank growth strategy and will report to AMP Australia chief executive Scott Hartley.

“Sean is a highly respected leader and I’m very pleased we’ve been able to appoint someone of his calibre to lead AMP Bank, and to ensure we continue to deliver high quality products and services to our bank customers,” Mr Hartley said. “We have ambitious growth plans for the Bank, and with his proven mix of strategic and operational expertise Sean is the right person for the job.” AMP welcomed Mr O’Malley’s “deep and broad experience” at AMP, with roles including director of contact centres and operations transformation “with a focus on transforming the customer experience”.

The rest of this article can be found at investordaily.com.au.

Investors vulnerable to ‘slow burning’ climate risk

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

Most investors believe that climate change will reshape the world – but less than half are actually doing anything to prepare for it. Nearly 90 per cent of global investors believe climate change is important but 40 per cent have yet to incorporate it into their investment process, according to new research from PGIM. “The humanitarian and economic catastrophe unleashed by COVID-19 revealed investor’s vulnerability to slow-burning risks with unpredictable timing,” said PGIM chief operating officer Taimur Hyat.

“Climate change is the next crisis that will radically reshape investors’ risks and opportunities. Investors that take action now can play an influential role in driving the global transition to a low-carbon economy while optimizing their portfolios for a greener future.” The research also found that few investors use alternative data sources to understand cross-portfolio climate risk – such as satellite imagery or air quality data – and that investors shouldn’t rush away from so-called “brown industries” when there are opportunities to engage with companies that want to change their ways.

The rest of this article can be found at investordaily.com.au.

AIIB to add 50 experts for private renewable investing

Posted by Anton Murray Consulting on . Posted in Investment Banking News

AsianInvestor

Asian Infrastructure Investment Bank (AIIB) intends to hire 50 investment experts this year as part of its efforts to commit 50% of its approved financing to renewable projects by 2025, with a particular focus on the support of private sector investors. These efforts will span directly supporting projects with making equity co-investments and issuing bonds related to environmental, social and governance projects, according to its head of investments. Jin Liqun, president of the multilateral bank, told an online event in January that AIIB wants efforts to address climate change comprise at least half of its financing approvals by 2025.

To achieve those targets, the young multilateral development bank will need many more personnel to implement strict selection criteria, said D. J. Pandian, vice president and chief investment officer at AIIB. “That means projects worth $8 billion to $9 billion per year are likely to be approved by that time,” he told AsianInvestor in an interview. “To strengthen the investment team, we are planning to hire 50 more talents globally this year, particularly in the private investment sector. The private investment goal is because we need to mobilise more fund from non-government sides.”

The rest of this article can be found at asianinvestor.net.

Why Magellan took a punt on Barrenjoey

Posted by Anton Murray Consulting on . Posted in Investment Banking News

InvestorDaily

Upstart Barrenjoey has the makings of Australia’s next big financial institution, according to Magellan chief executive Brett Cairns and chairman Hamish Douglass. Magellan pumped a cool $156 million into fledgling investment bank Barrenjoey in September last year, in what chairman Hamish Douglass believes is a sure bet. “I don’t think I’ve seen anything like it in my life, what they’ve done at Barrenjoey in such a short period of time – to put all the infrastructure and licences and technology in place, and then assemble just an extraordinary team of individuals,” Mr Douglass said.

“I think over the next three years people will be surprised by what that team does. We’re not running it, but we’re so privileged to be associated with those individuals.” Magellan CEO Brett Cairns also shrugged off news reports that suggested Barrenjoey is essentially UBS Australia 2.0, drawing many of its senior staff – including key deal-maker Matthew Grounds – from the investment bank. “The business has begun extremely well. They’ve managed to build a great deal of the foundations and the key infrastructure that’s required….there’s great diversity within that business, and the quality of that staff is really first class. It’s going to be an extremely high-quality group of people in that business,” Mr Cairns said.

The rest of this article can be found at investordaily.com.au.

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