LONDON (Reuters) – Buzzing trading floors, classrooms and networking drinks have been replaced by online projects, ‘hackathons’ and fitness sessions for the class of 2020 investment banking interns.
Goldman Sachs , Morgan Stanley , Barclays , JP Morgan , UBS , RBC and Citi have all held internships virtually this year as they adapt to the restrictions imposed by the coronavirus pandemic.
Schmoozing with executives and fellow interns has been via virtual coffees and quizzes, while Goldman Sachs laid on Zoom networking lunches, hackathons and fitness and cooking classes.
“We couldn’t have big parties or anything like that but we did work with a music start-up – there was a battle of the bands competition where the interns could vote,” Helena Sharpe, JP Morgan’s head of campus recruiting for EMEA, said.
Although many of the highly sought after schemes were cut to 5 weeks from the usual 8 or 10, most interns lucky enough to secure a place still received full pay while working from home.
Investment bank interns in London are usually paid around 10,000 pounds ($13,034) for a 10-week programme, financial careers website efinancialcareers.co.uk estimates.
Such internships offer the potential to kick start lucrative banking careers, but have come under scrutiny in the past for the long hours some students work in their effort to impress.
“Some of them probably still work relatively long days because they want to make a good impression and do the best they can on their projects,” Sharpe said.
How well virtual internships work-out is being closely watched by banks assessing the long-term future of remote working, particularly for new joiners, with Barclays and RBC considering keeping some elements for future programmes.
Banks have supplied the necessary kit for working from home. Goldman Sachs, which had around 380 interns in Europe, Middle East and Africa (EMEA), even sent electricity generators to those who needed them. “It’s one big experiment, but it feels great and the feedback’s been very positive,” Rob Ager, head of programmatic talent acquisition at Barclays, adding that although “authenticity” could get lost in the virtual world, working from home had created a more collaborative culture.
‘BUZZ AND VIBE’
There are limitations to the work banks can offer this year, with interns at JP Morgan working on case studies and projects rather than on placements within teams, while Morgan Stanley offered business simulations and work-related projects.
At Barclays, there were two weeks of classroom learning, and while some parts involved a real-life teacher others required watching videos on an online portal.
“You can’t really get the full buzz and vibe of the trading floor in a virtual setting, which is a bit disappointing,” an intern at one firm who asked not to be named said.
“I don’t think you get the true feel of work when you’re working from home and for me personally it would be easier to network in person and get to know people more genuinely.”
But working virtually has made interns less competitive with each other and more willing to help, the intern said, adding they were able to call each other to ask questions.
Citi has guaranteed all of its around 200 London interns a graduate job offer for 2021 so long as they meet the minimum requirements, easing the competitive dynamic.
For staff supervising the programmes, the virtual internship is not without challenges.
“I have to describe things over email and stuff or get on Zoom calls and all of these things that are just easier if it’s done live,” an associate at a U.S. investment bank said.
And while it is harder to monitor interns remotely, banks say they do their best to ensure hours are kept in check.
“We do encourage them to have a good work life balance and take regular breaks,” JP Morgan’s Sharpe said.
($1 = 0.7672 pounds)
(Reporting by Elizabeth Howcroft; Additional reporting by Imani Moise in New York; Editing by Rachel Armstrong and Alexander Smith)
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.
