Gerry Grimstone, who has held senior positions at Barclays bank and fund manager Standard Life Aberdeen, has been appointed the UK’s investment minister ahead of a crucial period where the government will need to sell the country outside the EU.
The role replaces the trade minister position that had been held by Ian Livingston, former BT boss, and media executive Rona Fairhead. His remit will be to encourage investment into the UK from overseas institutions and sovereign wealth funds, and opening up new markets for trade.
Sir Gerry, one of the City’s best-known figures, will also help push the government’s agenda around “levelling up” the UK regions by bringing investment from overseas into key infrastructure projects that will probably cost tens of billions over the next decade.
The 70-year-old City grandee will also advise the government on how to foster British competitiveness after the UK emerges from the coronavirus crisis, which is expected to weigh heavily on many of the drivers of the UK’s economic growth.
According to the British Chambers of Commerce this week, UK export growth is expected to fall to its lowest level since 2009 amid a lack of clarity on the UK’s future trading relationship with the EU and other partners around the world.
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The role has been vacant since Lady Fairhead left in May 2019 amid talk that Theresa May would rush through a new appointment before she stood down for Boris Johnson. Lady Fairhead lasted less than two years in the role, but longer than her predecessors Mark Price, former managing director of Waitrose, and Lord Livingston, who each served about 17 months.
Sir Gerry started his career as a civil servant at the Treasury, working on privatisation for Margaret Thatcher, before taking on a series of high-profile City jobs. Most recently he was deputy chairman of Barclays and chairman of Standard Life Aberdeen, where he was seen as the driving force behind the £11bn merger of the two fund houses before he stood down last year.
His appointment will be welcomed by many in the City, given worries about the government putting Brexit priorities ahead of safeguarding the interests of the UK’s financial sector.
Many City companies want a high degree of equivalence with EU financial rules and guaranteed market access, although Brussels has already warned that this might not be possible unless the UK agrees with wider regulations set by the bloc.
Sir Gerry will be an unpaid minister jointly at the Department for International Trade and the Department for Business, Energy and Industrial Strategy. The role comes with a life peerage. He will also help push the government’s trade bill through the House of Lords.
Sir Gerry has held a number of government advisory roles, including in UK-China and UK-India relations, participating in prime ministerial visits and the annual dialogues between finance ministers. He chairs Standard Life Aberdeen’s insurance business in China. In India, he was on the board of HDFC Life, one of India’s largest life assurance companies, and serves as board adviser to the Abu Dhabi Commercial Bank, among other roles in the Gulf.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
