Month: December 2021

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5 Steps to Take to Improve Your Finances Before 2022 Begins

5 Steps to Take to Improve Your Finances Before 2022 Begins

With the new year rapidly approaching, now is the perfect time to assess your finances. Life may feel busy right now, but evaluating your financial situation and coming up with new goals can help you start the year off right. By making some changes, you can improve your finances and set yourself up for success. Here are five steps you can take:

1. Calculate how much debt you have

Having debt can be stressful, but ignoring how much debt you have will not be good for your financial health. With 2022 only weeks away, now is an excellent time to figure out how much debt you have. Take some time to outline all of your debt and the interest rates. This way, you can prioritize which debt you will focus on paying off. Working to pay off higher-interest debt first is a good plan if you want to pay fewer interest fees.

If you’ve been struggling to tackle your debt, this guide on how to pay off debt may be helpful. Once you eliminate your debt, you’ll have more flexibility to save for future expenses or invest.

2. Begin budgeting or rework your existing budget

So many people don’t budget because they think it will be too difficult to do or think a budget isn’t necessary. No matter your financial situation, having a budget can be helpful. If you already follow a budget but haven’t taken a close look at your spending habits recently, go ahead and do so. You may need to rework your budget and your spending goals.

If you’re brand new to budgeting, it’s easier than you might think. This guide will help you set up your first budget. Following a budget can help you reach your financial goals sooner and can minimize unnecessary spending and debt. Some people find that using budgeting apps makes it easier to follow a budget and track spending. You may want to give one of these apps a try!

3. Set financial goals for the upcoming year

Goals can keep you accountable. When was the last time you set financial goals? If it’s been a while, there’s no better time than now. Figure out what you want to achieve financially in the new year. Perhaps you want to establish an emergency fund, or maybe you wish to get out of credit card debt. Your goals may look different than those of the other people in your life, and that’s okay.

Once you outline your goals, you can figure out what steps you’ll need to take to reach your goals. If a goal feels too big, you can break it down into smaller actionable tasks, making your overall goal more achievable.

If you have extra funds sitting in your checking account, go ahead and move some of it over to your emergency fund or into a separate bank account for another savings goal. When you keep excess money in your checking account, it’ll be easier to spend — and you may wind up spending your extra money on unnecessary purchases.

If you set extra money aside where it’s out of sight, it’s more likely to be there when you need it for a future expense. Are you ready to open a new bank account for your savings? These are the best savings accounts.

5. Set up automated savings

Automating your savings is a smart way to ensure you follow your savings goals. Doing this can also save you time and ensure you don’t forget to save. Today’s financial apps and bank apps make it simple to automate your savings. You have complete control over savings automation. You can choose how much money you save and how often your automated withdrawals happen.

It’s a good idea to have your automated savings go into a separate savings account. You can easily transfer the money into your primary bank account when you need to access the funds.

By following these steps, you can set yourself up for financial success before 2022 starts. If you’d like more helpful tips, check out our personal finance resources.

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Stocks pare earlier gains with Omicron, inflation in focus

Stocks pare earlier gains with Omicron, inflation in focus

Stocks turned lower Wednesday afternoon as more hawkish remarks from Federal Reserve Chair Jerome Powell compounded with concerns around the Omicron variant and its impacts on the economy. The S&P 500, Dow and Nasdaq each erased earlier gains to dip into the red.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S. 

Stocks cut gains after CNN first reported the news around 1:45 p.m. ET, citing an unnamed person familiar with the matter. The U.S. joined more than two dozen other countries in reporting at least one case of the Omicron variant, which was first identified last week by scientists in South Africa. 

The latest development renewed concerns about the potential impact of the new variant for the domestic economy. A day earlier Moderna (MRNA) CEO Stephane Bancel told the Financial Times that the company’s current COVID-19 vaccine would likely see a “material drop” in effectiveness against Omicron, but that more data was still needed on the variant.

This commentary, as well as ongoing uncertainty over the transmissibility and severity of disease caused by the new variant, also contributed to the broader market slide seen on Tuesday. 

“The market doesn’t like an information vacuum, and now we have two,” Thomas Hayes, Great Hill Capital Chairman, told Yahoo Finance Live. “Not only did we have the CEO of Moderna expressing concern that his vaccines may not have full coverage for Omicron, but then you had Powell throw this … wrench into the mix at the hearing saying that maybe we’ll speed up taper by a few months. That’s no small potatoes for sure, because the market had anticipated over six or seven months that we would get another $660 billion of liquidity.”

Namely, Powell told the Senate Banking Committee that it would be appropriate for the central bank to consider completing its asset-purchase tapering process “a few months sooner” than previously telegraphed. Market participants had been anticipating that the Fed might strike a more supportive stance for longer especially given concerns over the latest coronavirus variant. But instead, Powell suggested his priority was on curbing persistently elevated levels of inflation, and the Fed chair added it was “probably a good time to retire” his description of inflation as “transitory.”

“Chairman Powell’s commentary course-corrected the view on inflation and the potential need for quicker policy adjustment,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in an email. “The reality is hotter inflation coupled with a strong economic backdrop could end the Fed’s bond buying program as early as the first quarter of next year.”

“Ultimately, the transitory view on inflation has officially come to an end as Powell’s comments reinforced the notion that elevated prices are likely to persist well into next year,” he added. “With potential changes in policy on the horizon, market participants should expect additional market volatility in this uncharted territory.” 

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4:04 p.m. ET: Stocks end whipsaw session lower after first U.S. Omicron case confirmed: Nasdaq drops 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): -53.98 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,513.02

  • Dow (^DJI): -461.65 (-1.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,022.07

  • Nasdaq (^IXIC): -283.64 (-1.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,254.05

  • Crude (CL=F): -$0.79 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.39 a barrel

  • Gold (GC=F): +$3.30 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.80 per ounce

  • 10-year Treasury (^TNX): -0.9 bps to yield 1.4340{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:50 p.m. ET: ‘The market lacks conviction on the upside’: Strategist

Investors are in for more whipsaw stock market action in the very near-term as more information emerges on the new Omicron variant, according to at least one strategist. 

“The price action you’re seeing now really shows the market lacks conviction on the upside,” Niladri Mukherjee, Bank of America head of portfolio strategy, told Yahoo Finance Live on Wednesday.

“In the last couple of weeks, we’ve had two major uncertainties being injected into the market place. One obviously was the news of the new variant, which we know very little about right now. And the second is the possibility of a more hawkish Fed,” he added. “And you’ve seen on different days, on some positive days, you’ve seen a recovery in some of the value and cyclicals which do well when the economy does well. And other days, you’ve seen the secular growth-oriented sectors, like technology doing better than the S&P 500.”

“We think uncertainty will be with us at least in the near-term until we learn more about the virus — its severity, its transmissibility, how much it is evading the vaccines, etc.,” Mukherjee said. “But as we go into 2022, the bigger environment will be that which is really dictated by the Fed’s path to monetary policy normalization.”

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12:55 p.m. ET: Bank stocks jump amid rise in Treasury yields

Bank stocks jumped Wednesday afternoon as Treasury yields climbed, with traders pricing in expectations for an interest rate hike by the Federal Reserve next year after its asset-purchase tapering process ends.

The two-year yield, which is sensitive to expectations for monetary policy changes, jumped by about 5.5 basis points Wednesday afternoon to hover around 0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

The jump in Treasury yields helped lift shares of major banks including JPMorgan Chase and Goldman Sachs, both of which are also Dow components. The KBW Regional Banking Index, an exchange-traded funding tracking bank stocks, rose by more than 3.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for its best climb in a month. 

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10:05 a.m. ET: ISM Manufacturing index ticks up to 61.1 in November, coming in-line with estimates

Manufacturing sector activity picked up in November compared to October, though inflationary concerns and other price pressures continued to weigh on goods-producing industries.

The Institute for Supply Management’s (ISM) November manufacturing index came in at 61.1 for the month, up from 60.8 in October. Readings above the neutral level of 50.0 indicate expansion in a sector. 

Beneath the headline index, a subindex tracking prices paid eased to 82.4 from 85.7 in October, but still came in elevated compared to pre-pandemic levels amid lingering inflation. A subindex tracking employment improved to 53.3, rising from October’s 52.0. 

“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” Timothy Fiore, Chair of the Institute for Supply Management Manufacturing survey, said in a press statement. “All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products.”

“Pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential,” Fiore added. 

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9:32 a.m. ET: Stocks rise, S&P 500 and Nasdaq gain more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here’s where markets were trading just after the opening bell:

  • S&P 500 (^GSPC): +48.17 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,615.17

  • Dow (^DJI): +254.43 (+0.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,738.15

  • Nasdaq (^IXIC): +177.88 (+1.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,712.72

  • Crude (CL=F): +$2.30 (+3.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.48 a barrel

  • Gold (GC=F): +$13.00 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,789.50 per ounce

  • 10-year Treasury (^TNX): +3.7 bps to yield 1.478{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:22 a.m. ET: Private payrolls rose more than expected last month: ADP

Private sector employment expanded more than anticipated in November, suggesting further improvement in the labor market’s recovery.

U.S. private payrolls grew by 534,000 in November compared to October, ADP said in its closely watched monthly report. Consensus economists were looking for private payrolls to rise by 525,000, according to Bloomberg data. Private payrolls had grown by 570,000 in October, according to ADP’s revised monthly figure.

More data on the state of the labor market will be due on Friday, when the Labor Department releases its “official” government jobs report. Consensus economists are looking to see non-farm payrolls rose by 548,000 in November, accelerating modestly from October’s better-than-expected 531,000 rise. ADP’s report has not typically served as a perfect indicator of what to expect from the government job report due to differences in survey methodology. 

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7:24 a.m. ET Wednesday: Stock futures hold onto gains, Dow futures gain nearly 300 points

Here’s where markets were trading as of 7:24 a.m. ET: 

  • S&P 500 futures (ES=F): +55.75 points (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,622.00

  • Dow futures (YM=F): +293.00 points (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,750.00

  • Nasdaq futures (NQ=F): +236.00 points (+1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,386.50

  • Crude (CL=F): +$2.96 (+4.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.14 a barrel

  • Gold (GC=F): +$11.50 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.00 per ounce

  • 10-year Treasury (^TNX): +4.4 bps to yield 1.485{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:15 p.m. ET Tuesday: Stock futures rebound 

Here were the main moves in markets as the overnight session kicked off: 

  • S&P 500 futures (ES=F): +22.25 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,588.5

  • Dow futures (YM=F): +92 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,549.00

  • Nasdaq futures (NQ=F): +93 points (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,243.5

NEW YORK, NEW YORK - NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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The soft skills that help elite men achieve finance jobs

The soft skills that help elite men achieve finance jobs

If you’re trying to get a banking and finance job, but you’ve never been skiing, know nothing about the Hamptons and think Gstaad is a kind of cheese, you may be at a disadvantage. Although banks are now doing their best to open recruitment to the broadest range of applicants possible, historically at least they had a well-documented tendency to hire from the upper middle classes, particularly for client facing roles. In London. 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of people in senior roles in finance still come from higher socieconomic backgrounds. – The hangover is real.

If you don’t have the advantage of an upper middle class upbringing, a new study from the University of Bergen in Norway identifies the soft skills that act as the selection criteria for getting hired and promoted into elite jobs. These are the skills that you need to both cultivate and to signal on your CV.  

Soft skills play a “substantial role” in getting hired into an “upper-class” job, says Lisa M. B. Sølvberg, a professor of sociology at the Norwegian University of Bergen. “Hard skills’ do not suffice to achieve an upper-class position,” she adds, noting that as university attendance has increased, so soft skills have become an increasingly important differentiator – and that many of the soft skills required overlap with the behavioral traits of the upper middle classes. 

Sølvberg analyzed the language used in 150 job advertisements in three key sectors and extracted the skills that tacitly determine whether you’ll get the role. She looked at the cultural sector (Eg. editors, managers of cultural institutions, film, higher education), she looked at the professional sector (eg. doctors, dentists, lawyers), and she looked at the “economic” sector (Eg. CFOs, vice presidents, compliance officers, COOs).  

In the economic sector, a few key skills stood out.

Soft skills for economics and finance:

Companies in the economic sector prioritize authoritative traits, says Sølvberg. Yes, candidates need the right education and professional experience, but they also need the following more nebulous faculties. –

  • Goal oriented and results driven. – Unlike other sectors, jobs in the economic space are all about tangibles, and you’ll need to show this on your résumé, says Sølvberg. You’ll also need to show that you can “improve and develop”, both a team and yourself. 
  • High energy. – Recruiters for economic jobs want “go-getters.” You need to demonstrate that you’re, “ambitious, an achiever, driven, on the offensive and innovative.”
  • Sociable cooperation. Being authoritative doesn’t mean being aggressive. To succeed in an elite economic role you’ll also need to demonstrate good networking skills, to be “enthusiastic and energetic, social and sociable, and to have cooperation skills and communication skills.”
  • Structured hard work. Sølvberg found that elite economic jobs also require candidates to demonstrate an appetite for structured hard work. You need to display a high capacity for work, excellent time management and strong analytical skills.

Soft skills in other sectors 

Sølvberg highlights the contrast between the soft skills required for economic jobs and the soft skills required elsewhere. 

In the professional sector, for example, the emphasis is instead on being dedicated, self-sufficient, responsible, and having a high level of personal aptitude. In the cultural sector there’s more emphasis on coaching employees to achieve a common goal (alongside being hardworking, analytical, vigorous, independent and having a high level of personal aptitude again). 

Sølvberg notes that gender disparities tend to be reinforced by the different job descriptions. – “Personal aptitude” is far more highly valued in the female-dominated sectors, whereas male dominated sectors like finance are more likely to value commercial understanding, strategic thinking, analysis, innovation, vigor, ambition and confidence. 

Sølvberg is in the business of making observations rather than recommendations, but if you’re applying for a job in finance, it might be worthwhile considering how your application reflects her findings. – Do you demonstrate the skills shown in the bullet points above? Even if they’re not explicitly required in the job description, it may be worth incorporating them into your CV.

You might also want to talk about exercise. In a previous study, Sølvberg found that male members of elite classes were very physically active and displayed “negative attitudes” towards people who didn’t exercise. They didn’t display these negative attitudes initially, but they emerged within 15 minutes of chatting to them.

Photo by Roland Samuel on Unsplash

Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

 

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Stocks, events to watch out for on December 1, 2021

Stocks, events to watch out for on December 1, 2021

Stocks, events to watch out for on December 1, 2021


Stocks, events to watch out for on December 1, 2021&nbsp

EVENTS 

PMI data

Tega Industries’ IPO opens

Star Health And Allied Insurance Company IPO subscribed 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Day 2

FII in F&O

Indiabulls Housing Finance in ban

FII IN F&O

Index futures net buy `1589cr

Index options net sell `336cr

Stock futures net buy `3348cr

Stock options net buy `83cr

Total FII net buy `4685cr in F&O

BULK/BLOCK DEALS: ALL MSCI RELATED 

DCB – sell – I-Shares Emg Mkts (1.6m shrs atRs82). 

Godrej Prop – sell – Integrated Core Strategies (2.8m shrs atRs1,998). 

IRCTC – sell – Integrated Core Strategies (5.2m shrs atRs794). 

Go Fashions – buyers – Nomura Funds (1mi shrs atRs1,278). IPCA Labs – buy – Integrated Core Strategies (2.5m shrs atRs2,103). 

Mindtree – sell – Integrated Core Strategies (1.6m shrs atRs4,319). 

Mphasis – sell – Integrated Core Strategies (2.2m shrs atRs2,896). 

Nakoda – buy – Saroj Gupta (87k shrs atRs114). 

REC – buy – Integrated Core Strategies (21.9m shrs at Rs134). 

SRF – sellers – Societe  Generale (1.9m shrs atRs2,021) & Integrated Core Strategies (3.5m shrs atRs2,002). 

Talbros – buy – Vijay Kedia (206k shrs atRs336). 

Tata Power – sell – Integrated Core Strategies (32.8m shrs at Rs216). 

Zomato – sell – Integrated Core Strategies (41.7m shrs at Rs152).

STOCKS TO WATCH

TCS 

Introduces assessment and migration factory for AWS

Maruti Suzuki

Co is expecting impact on vehicle production in Haryana and Gujarat Plants in December, 2021 owing to Electronic Components Supply Constraint

Co says currently estimated total vehicle production volume across both locations could be around 80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of normal production.

Bharat Forge

Change in name of subsidiary  Sanghvi Forging and Engineering Limited has been changed to ‘BF Industrial Technology & Solutions Limited’ with effect from November 30, 2021

NMDC

Changes in prices of Iron Ore w.e.f. 30-11 -2021 Lump Ore (65.53, 6-40mm) @ Rs. 5,200/- per ton and Fines ( 643, -1 Omm) @ Rs. 4,560/- per ton

Ultratech Cement

Commencement of mining from Bicharpur Coal Block situated in MP

IndiGrid

Appointment Jayashree Vaidhyanathan as an Independent Director and Hardik Shah as a Non-executive Director wef  30, 2021

Cigniti Technologies 

Enhances its 5G Assurance focus with Innovate5G Partnership

Edelweiss

Edelweiss Financial Services announces Rs 5,000 million NCDs

RVNL

Signed MoU with Economic Policy Research Institute, Ministry of Economy and Finance of KYRGYZ Republic, Bishkek, KYRGYZSTAN

Axis Bank 

RBI approved reclassification of The New India Assurance Company and General Insurance Corporation of India to “Public” category from “Promoter” category

OTHER NEWS

ET-2 million Plus Using Swiggy’s Instamart

ET-White-collar Hiring Logs Marginal Dip in November

ET-Govt may own 51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in co for natural gas pipeline operations

ET-Handset co’s wary of plant and border closures

ET-Bajaj Finance, HDFC hike deposit rates

Expect revenues to touch ~62,000 cr this year : Amul: Reports

IHCL, Tata Power tie up for solar energy supply to hotels: Reports

FII/DII DATA (Provisional Data)

FIIs net sold 5445.25  cr worth of shares on November 30 (prov)

DIIs net bought 5350.23  cr worth of shares on November 30

 

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How technology has revolutionised our personal finances

How technology has revolutionised our personal finances

As the UAE celebrates its Jubilee year, the country has emerged as a leading global player in the financial services industry that has been revolutionised by technology and transformed the way we bank, invest and save our money.

From opening bank accounts with facial recognition technology to investment robo-advisories that deploy artificial intelligence to measure risk factors to instant money transfers, neo banks and landmark legal reforms, the sector has come a long way since the early 1970s, when the dirham was first introduced as the country’s official currency, Women Fashion.

That was a time when it would take weeks to remit money home, when financial services employees would painstakingly fill out forms manually and consumers would line up at a bank or exchange house to apply for travellers cheques before taking an overseas holiday.

But it was the 1980s that proved to be the turning point for the sector, when the humble fax and telex machines became a crucial means of “real-time” communication for the country’s banks, exchange houses and other financial services firms, Women Fashion.

“I recall the handwritten book-keeping and the use of carbon paper to create copies before the photocopiers and computers came into the picture,” Rashed Al Ansari, the chief executive of Al Ansari Exchange told The National.

“I also recall when travellers cheques revolutionised international money transfers, which is today considered obsolete. There were days when transactions were being recorded by hand and mailed, before being sent by telex and fax.”

However, it was the internet that was the driver behind the sector’s transformation, which made transactions simpler, quicker and more affordable than ever before, while today’s mobile technology has also influenced the way money is being transferred around the world, Mr Al Ansari said.

The digitalisation of the UAE’s financial services sector accelerated during the Covid-19 pandemic, as consumers increasingly relied on the convenience of mobile apps to do their banking, send money home, trade in stocks or shop online during movement restrictions, Women Fashion.

“Smartphones and other mobile devices effectively reshaped the future of the global remittance business,” Mr Al Ansari said.

New technology will continue to drive the sector’s transformation thanks to innovative FinTech start-ups, which are working with numerous lenders and exchange houses on open banking concepts and blockchain, for instance, in an effort to further streamline services.

Banking customers today want a seamless, automated experience with little waiting time – a far cry from the days when the internet did not exist and queuing up to make a deposit or cash withdrawal at a physical bank was the norm, according to Philip King, the head of retail banking at Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate.

To enable this, banks in the region are digitising complex processes and end-to-end customer journeys across their front, middle and back offices, according to the UAE Banking Perspectives 2021 report by KPMG.

Smartphones and other mobile devices effectively reshaped the future of the global remittance business

Rashed Al Ansari, chief executive of Al Ansari Exchange

“At ADIB, we believe the digitisation of banking services is a necessary advancement to help banks fuel new growth opportunities and unlock greater value for customers,” Mr King said.

“For simple transactions like payments and transfers, customers prefer digital or mobile channels that provide instant and convenient services,” he adds, Women Fashion.

“For more complex or critical banking products, including investments and home finance, customers prefer to visit the branch and interact with their relationship managers. So, the appetite for digital interactions varies across banking products, which is why at ADIB we always look at a hybrid approach.”

Meanwhile, the UAE introduced landmark legal reforms in 2020 that improve the protection of our personal finances in the future. The sweeping amendments to laws on inheritance, bounced cheques, bankruptcies and economic support during the Covid-19 pandemic were introduced as part of the Emirates’ efforts to reshape its legislative and investment environment for the 21st century.

One of the most welcome changes was the update to the Federal Law on Commercial Transactions, which includes several new provisions that aim to discourage criminal lawsuits against people and businesses for bouncing cheques.

The amendments come into effect in 2022 and will introduce a mechanism that ensures banks partially pay the amount to the beneficiary after it is deducted from the available funds in the account of the cheque issuer.

The opportunities for retail investors to take control of their investments has also undergone a significant change compared with the days when financial advisers, driven by high commissions, would mis-sell complex investment products to unsuspecting people.

These days, retail investors are increasingly seeking access to markets with the help of technology, leading to a surge in popularity for zero-commission trading apps such as Robinhood, eToro and Interactive Brokers.

Digital wealth managers such as the UAE’s Sarwa and StashAway are also helping to revolutionise the financial services landscape in the Middle East by offering low-cost investment solutions to a large market that has traditionally had limited access to trading and investing in the past.

Demand for trading apps soared during the pandemic as monetary easing by the US Federal Reserve and other central banks around the world gave novice day traders more money to invest during pandemic lockdowns, according to a report by Finra Investor Education Foundation and the National Opinion Research Centre at the University of Chicago.

Novice investors are turning to trading apps such as Robinhood to buy stocks. AP

This trend is set to continue. The global robo-advisory market size is projected to grow by 31.8 per cent to $41.07 billion by 2027, up from $4.41bn in 2019, according to Allied Market Research.

“There have been a lot of milestones that we can point to [in investing], but the main trend at every step was making it cheaper, low cost, almost free in some cases, and making it more accessible so there is more wealth in more hands,” according to Mark Chahwan, co-founder and chief executive of Sarwa.

“It started with mutual funds, then it went on to exchange-traded funds. There was a resurgence in passive investing, but now active is making a comeback with trading, where it’s not just about securing your safety net and a diversified portfolio, but also about investing in themes you believe in.”

Over the coming decades, it will be Generation Z and their younger cohorts who will reshape the financial industry in their tech-savvy, mobile-first image, which will have ramifications for all consumers, companies and investors, according to Morgan Stanley.

Mr Chahwan agrees: “I won’t say this is a plot twist, but the new big element that’s now shaking up the industry is the amount of young people that are investing … and are growing up in such an environment”.

Updated: December 1st 2021, 4:30 AM

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Bitcoin bull run shows signs of wear as crypto investors eye other coins; Omicron, Fed taper loom

Bitcoin bull run shows signs of wear as crypto investors eye other coins; Omicron, Fed taper loom

The volatile but never boring market for Bitcoin (BTC) has been whipsawed in recent days, as investors ponder whether there are better returns to be had in other cryptocurrencies, even as a new COVID-19 variant and the Federal Reserve’s policy outlook shake up the landscape.

With news of the Omicron strain of COVID-19 unsettling investors, Bitcoin shed over 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Tuesday as Fed Chairman Jerome Powell dropped several hints that the central bank is growing more attentive to inflationary risks, and may even accelerate its plans to pull back on stimulative bond purchases.

In theory, the rise of a new variant would prompt the Fed to err on the side of more stimulus, which should benefit cryptocurrencies. Still, Bitcoin sold off sharply along with other risk assets last week, and has yet to challenge its record high near $68,000 set earlier this month, off by more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} since hitting that peak.

To be certain, Bitcoin is still firmly entrenched in bull market territory. However, other crypto assets, some notably smaller and higher-risk, are seeing growing investment flows, and may be drawing money away from Bitcoin holdings.

Jon Wolfenbarger, a veteran equities analyst, told Yahoo Finance this week that he’s using the 250 day-moving average (DMA) to judge whether crypto and other assets might begin long term turns for the worse. 

While stocks, bonds and commodities still traded above their 250 DMAs on Friday, Wolfenbarger cautioned that “there has been enough damage done recently to tell us that we need to be very vigilant for continued weakness that could trip bear market signal,” even if the larger uptrend remains intact, he said. 

During the downturn, notable Bitcoin whales like El Salvador, the largest nation state holder of BTC, which is planning to issue sovereign BTC bonds; and MicroStrategy, the largest publicly listed U.S. company, both used the recent correction as a buying opportunity. 

‘Further down the risk-curve’

A recent trend indicates more investors are hunting for crypto trading opportunities outside Bitcoin.

Ether (ETH) — a major “Web 3.0” contender integral to the boom in nonfungible tokens (NFTs), decentralized finance and the Metaverse — has logged gains higher than BTC, roughly doubling its performance over the last week. 

Meanwhile, higher risk meme-coins such as Dogecoin (DOGE-USD) and Shiba Inu coin (SHIB-USD) are posting even larger gains. The latter is up over 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the day, coinciding with its listing today on the U.S. based cryptocurrency exchange, Kraken.

At least a few crypto investors consider Bitcoin safe haven asset of sorts, largely because of stimulative government policies that feed inflation and devaluation, but its price action suggests its more closely linked to other risk-sensitive assets. Added to that, data suggests that money is rotating out of Bitcoin into other speculative cryptos. 

This pattern is best captured in the ether/bitcoin trading pair, which is trading near levels not seen since 2018, according to Trading View. 

“A break-out of ETH/BTC would further support the thesis of an observable rotation out of BTC and into more speculative alts[coins],” the asset manager Fundstrat wrote in a research note Monday.

Beyond speculation, ETH is also used to pay transaction fees on the Ethereum blockchain. Its price action relative to Bitcoin also shows why lesser known cryptocurrencies built on top of Ethereum, especially within DeFi, are seeing the most significant gains over the last few weeks.

“When the market is moving and certain sectors are doing well, as they are currently in DeFi assets, then traders add risk and allocate out of the safe haven [bitcoin]” said Bryan Hernandez, President of the DeFi trading app, Structure.

And the initial buying in these smaller cryptocurrencies is much more speculative according to Hernandez. 

“Because smaller DeFi assets tend to be less liquid, they are more affected by moves from powerful players like big VC funds or certain market makers,” he added. “The access to credit that these players have gives them an ability to really push the price to new levels that then create awareness and FOMO buying.”

Other cryptocurrencies connected to the metaverse via virtual platforms The Sandbox and Decentraland, have seen swings of more than 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, respectively, over the last several days.

Contrary to a speculative frenzy, the rotation from Bitcoin to smaller cryptocurrencies suggests a degree of market health according to Mark Elenowitz, president and CEO of the fintech firm, Horizon Fintex.

“Investors are willing to go further down the risk curve for yet-to-be-built projects (i.e. the metaverse) because, again, they view the overall market structure at the moment as trending green.” said Elenowitz.

If the new Omicron-variant does shape buyer demand long term, some investors see a path for Bitcoin to rise in value as an inflation hedge. Yet Craig Erlam, Oanda senior analyst, isn’t so certain. 

First, it isn’t clear yet whether central banks will stall tapering enough to change investment growth, the analyst argues. Secondly, higher levels of inflation might cause the market to react in a markedly different way than they have during the early days of the pandemic.

“Everything is hypothetical at this point,” Erlam told Yahoo Finance. “But it’s always too convenient to try to pin [Bitcoin] down to one narrative.”

David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.

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