Hong Kong is rapidly becoming the world’s top destination for Chinese IPOs, with major firms raising billions and applications more than doubling since early 2024. This reflects a partial recovery as mainland Chinese exchanges struggle with strict regulations and market instability.
Improved regulatory support and creative workarounds for US investment restrictions have boosted listings in Hong Kong. However, mainland IPO activity remains low, with reforms underway to stabilise markets. The full revival of China’s domestic IPO market may only happen by 2026.

Tensions in the Middle East have escalated sharply after Israel launched multiple air strikes on Iranian military and nuclear sites on June 12th, bringing the risk of a broader conflict closer than ever. While no oil supply has yet been lost, Brent crude prices rose 8% to $74 a barrel on June 13th, reflecting fears of future disruption.
If hostilities remain contained, oil prices could settle between $65 and $70. However, ongoing strikes and potential Iranian retaliation may lead to moderate supply losses, pushing prices up by $5–10 a barrel. A more severe scenario—in which Iran’s oil infrastructure is hit or the Strait of Hormuz is blocked—could see prices surge beyond $100 or even $120 a barrel. The region’s volatility has made global oil markets increasingly precarious.

Efforts to revitalise Britain’s stockmarket have suffered another setback with fintech firm Wise announcing plans to shift its main listing to New York. Once seen as a sign of London’s potential to attract high-growth tech companies, Wise now follows a broader trend of European firms opting for American listings. Klarna and Revolut are likely to do the same.
The issue is not unique to Britain—across Europe, over 130 firms have moved their listings to the US in the past decade, with more than 1,000 going private. Despite reforms and regulatory reviews, European markets struggle to retain ambitious firms, which prefer America’s deeper capital pools, familiar investor base, and greater appetite for risk.
Valuation differences, often cited as a reason for the shift, may be overstated. Wise, for instance, claims valuation wasn’t the key factor in its decision. Ultimately, the main challenge lies in a lack of interest: even as reforms progress, Europe’s capital markets continue to be overlooked by the very companies they aim to attract.

A growing number of American investors are letting political beliefs influence their financial decisions, despite longstanding advice to avoid mixing politics with portfolios. A recent Gallup poll revealed a record partisan divide in stock market optimism, with Republicans far more bullish than Democrats. This polarisation is driving divergent investment behaviour, with wealth managers reporting clients adjusting portfolios based on their political views.
Research shows that since 2013, Democratic and Republican-leaning investors have increasingly chosen different stocks. Some have moved assets abroad or sought politically aligned funds, such as the conservative MAGA ETF—though its returns have lagged behind the broader market.
Historical data suggests political timing in investing is often unwise; simply staying invested across administrations would have yielded significantly better results. Nonetheless, many investors remain wary, reflecting deepening partisanship in financial decision-making.

The U.S. Senate is poised to pass the Genius Act, establishing regulatory guidelines for stablecoins—digital tokens backed by fiat currencies like the dollar. While stablecoins wouldn’t remove funds from the banking system entirely, they could shift deposits into more volatile and uninsured forms, particularly affecting smaller banks.
Funds backing stablecoins may still circulate within banks or be invested in assets such as U.S. Treasuries, akin to money-market funds. However, the transition from stable, insured retail deposits to large, uninsured corporate ones could increase funding risks, as seen during the 2023 Silicon Valley Bank collapse involving stablecoin issuer Circle.
Major banks, already equipped to manage large liquid assets, are likely to absorb most of these deposits and may even issue their own stablecoins. Meanwhile, smaller banks could struggle if stablecoins become popular for everyday financial use, especially as they may need to raise interest rates to stay competitive with new, yield-bearing digital options.

While Wall Street appears confident the worst of the recent tariff-induced volatility is over, many individual investors remain cautious. Some, like Paul Bachman, are reducing their exposure to stocks after the market rebounded, preferring to lock in gains rather than risk another downturn. This reflects a broader trend of retail investors growing wary following sharp market swings linked to President Trump’s unpredictable trade policies.
Though individual investors overall are still net buyers, data shows a sharp drop in equity purchases in May and signs of profit-taking. Financial advisers continue to stress the risks of trying to time the market, but many clients are reassessing their risk tolerance -especially after a period of strong market performance in 2023 and 2024.
Some investors are shifting towards international markets, concerned about high U.S. stock valuations, the federal deficit, and political instability. Others are pulling out entirely or adjusting their portfolios ahead of retirement. Despite recovery in major U.S. indexes, many remain unconvinced that the turbulence is truly behind them.

Chief executives at FTSE 350 companies earned a median of £2.5 million last year - 52 times more than a typical worker - according to new research from the High Pay Centre. The biggest disparity was at outsourcing firm Mitie, where CEO Phil Bentley earned £14.7 million, 575 times the pay of a median employee. Tesco followed closely, with CEO Ken Murphy earning 431 times more than a typical worker in the same period.
Among FTSE 100 firms, the median CEO-to-worker pay ratio was even starker at 78:1, rising to 106:1 when comparing CEOs to the lowest-paid quartile of workers. Although overall pay gaps have narrowed slightly, this may reflect job cuts or outsourcing.
The report has reignited debate around executive compensation, with calls for stricter transparency and potential pay ratio caps. Recent shareholder backlash against Centrica and scrutiny of rising pay at Marks & Spencer and major banks underscore growing concerns over fairness, especially amid economic pressures on ordinary workers.

Donald Trump’s proposed “revenge” tax law, known as Section 899 within the One Big Beautiful Bill Act, could threaten foreign investment into the United States, analysts warn. The provision would allow the US to impose escalating taxes - starting at 5% and rising to 20% - on individuals and companies linked to countries that apply "unfair" taxes on US businesses, such as digital services or diverted profits taxes.
The measure has sparked concern among economists and institutions like Chatham House and UniCredit, who argue it risks undermining investor confidence and the dollar’s safe haven status. Deutsche Bank has warned the policy could shift trade tensions into a "capital war."
British firms are especially vulnerable, as the UK’s tax regime includes levies targeted by the bill. Companies such as Pearson, Experian and Rentokil may be affected, while some, like Ashtead and Compass, may escape due to majority US ownership.
The proposed law, passed by the House of Representatives and awaiting Senate approval, could prompt some UK-listed firms to redomicile to the US to avoid penalties, reinforcing the trend toward transatlantic stock exchange shifts.

The US dollar has fallen to its lowest level in over three years, while London’s FTSE 100 closed at a record high, as markets reacted to Donald Trump’s renewed tariff threats and signs of a weakening US economy. Traders turned to the yen and euro, pushing the dollar nearly 10% lower this year.
Speculation is growing that the Federal Reserve may cut interest rates sooner than expected, following softer inflation and job market data. Trump’s comments about imminent country-specific tariffs further unsettled markets.
In contrast, the FTSE 100 benefited from a shift away from US equities, with analysts noting a growing investor appetite for geographic diversification.
Tensions between the US and India over trade, including steel, aluminium, and pharmaceuticals, are rising, while the UK is poised to benefit from a new trade deal with the US that may remove tariffs on British cars.
Although the pound rose against the dollar, weak UK economic data and expectations of a rate cut from the Bank of England weighed on sterling. Analysts attributed the dollar’s broader slide to market concerns over US economic stability and rising government debt under Trump.

Ian Wace, co-founder of hedge fund Marshall Wace, purchased the remote Scottish island of Tanera Mòr in 2017 for £1.7 million. Over the past eight years, he has invested around £100 million into its regeneration, focusing on community development, environmental restoration, and support for public service workers. The project uses reclaimed materials in its construction, such as marble from The Savoy and floorboards from Churchill’s Old War Office, and aims to challenge conventional approaches to philanthropy and rural revitalisation.
Meanwhile, BlackRock has set a bold target to raise $400 billion for its private markets division by 2030, positioning itself against major players like KKR and Apollo. This comes amid slowing allocations to private funds and leadership transition questions as CEO Larry Fink, now 72, remains in post.
However, private markets are under pressure, with private equity funds underperforming the S&P 500 across all time frames in 2024 for the first time since 2000. High borrowing costs and fewer exits have hampered returns.
Other notable stories include major investment plans in Europe from Blackstone and Aware Super, a new fund launch from Tower Research Capital, and a new exhibition in London reflecting on lost iconic trees, including the recently felled Sycamore Gap tree.

Geopolitical risk, often code for unpredictable US tariff policies, is now taking a more traditional form with renewed conflict in the Middle East, raising concerns over oil supply disruptions. Oil prices surged by up to 12% following Israeli strikes on Iran’s nuclear facilities and a key oil terminal, fuelling fears Iran might retaliate by targeting oil shipping routes such as the Strait of Hormuz.
Despite Iran producing 3.3 million barrels of oil per day, global supply is seen as resilient, with countries like Saudi Arabia and the UAE able to increase output. Historical patterns suggest that while oil prices often spike in response to geopolitical shocks, they typically stabilise as the economic impact-particularly weakened global demand-tempers price pressure.
Research from the ECB and the Dallas Fed suggests that geopolitical oil shocks are more likely to cause short-term volatility than long-lasting economic damage. Unless the conflict escalates significantly, the global economy and markets are expected to absorb the impact, as seen following previous crises such as Russia’s invasion of Ukraine. The notable exception remains the 1973 oil embargo, which led to a global recession and prolonged market downturn.

Afreximbank, a pan-African trade finance institution, has criticised Fitch Ratings for what it calls an “erroneous view” of its exposure to potential loan losses, amid concerns over its lending to cash-strapped countries like Ghana. Fitch warned the bank faces risks on around $2 billion in loans, citing weak risk management and potential solvency issues if Afreximbank is not treated as a preferred creditor in debt restructurings.
The dispute intensified after Ghana’s finance ministry disclosed it had not repaid Afreximbank for two years, contradicting the bank’s earlier statement. Ghana is seeking talks to restructure $750 million of loans amid a broader default situation.
Afreximbank, traditionally a short-term trade financier, has in recent years extended riskier sovereign loans at relatively high interest rates, challenging its image as a conservative multilateral lender. Fitch downgraded the bank’s credit rating close to junk status, warning that inclusion in debt restructurings could further harm its rating.
The bank insists it is a senior creditor exempt from restructuring losses, a claim disputed by analysts given its loan terms and ownership structure. The ongoing disagreement raises concerns over Afreximbank’s financial transparency and future lending strategy, with critics suggesting it has moved away from its original development mission towards riskier sovereign bailouts.