Earnest Analytics’ Post

The Reinhart Fixed Income Team explores how December’s lower-than-expected CPI data, strong 2024 retail sales, and global economic challenges could influence market trends in this Week in Review: https://lnkd.in/g_UFTWVB

Retail trading platform eToro has confidentially filed for an IPO in the U.S., marking a significant move that could value the company at over $5 billion. With its largest market in the UK, eToro is opting for a U.S. listing to access deeper liquidity and investor awareness. eToro enables trading of assets like stocks and cryptocurrencies and manages $11.3 billion in customer assets across 3 million accounts. The decision to list in the U.S. reflects London’s struggles to retain high-profile listings. This IPO follows a canceled $10.4 billion SPAC deal in 2022 and a $3.5 billion valuation in a 2023 funding round. Banks including Goldman Sachs, Jefferies, and UBS are collaborating on the IPO, potentially set for Q2 2025. eToro’s shift to the U.S. stock market underscores the importance of aligning market presence with investor needs, particularly in regions offering greater liquidity and visibility. This move also highlights challenges in global capital markets in attracting tech-driven IPOs. #IPO #RetailTrading #StockMarket #USMarkets #BusinessStrategy #CapitalMarkets #bpbcpa

Robinhood has revolutionised the US retail investing market, leaving traditional retail brokers struggling. To compete, they must evolve, and fast. One opportunity that presents itself is the proposed changes to US equity market structure that target the payment for order flow (PFOF) crucial in driving volumes to Robinhood. In a recent opinion piece for Traders Magazine, Horizon CEO Sylvain Thieullent discusses why both a reassessment of technology infrastructures and a rethink on how to engage with modern investors are essential for traditional brokers to seize the moment and succeed in today’s market landscape. Read the full article here: https://hubs.la/Q02WsfQP0 #retailbroker #PFOF #equitytrading #Robinhood #OEMS

https://lnkd.in/gnF4yd6G "These firms use speed and access to split spreads down to the 10,000ths of a penny to capitalize on order flow liquidity. These firms account for nearly 20-percent of all daily trading activity. Market makers compete with each other for optimal executions for clients. They are responsible for using firm capital to take the risk on both sides of the spread and profiting from the spread. However, order flow arrangements empower market makers with the additional liquidity to bundle large orders, deal from inventory and take the opposite sides of trades to buffer exposure risk. Exchanges will pay for order flow to promote itself and galvanize its reputations as a source of liquidity for institutional clients, listed companies and companies seeking to IPO. Order flow may get directed to the floor specialists that take on the role of a stock’s single market maker or to the exchange owned alternate trading systems (ATS) which include some of the most popular ECNs like NYSE ARCA, CBOE EDGX and various dark pools."

I great take on financial health by looking at how consumers stock up in inflationary times. Consumers are seeking value more than ever. With so many ways to save at the grocery and convenience stores (traditional coupons, digital coupons, multi-buy discounts, loyalty discounts, etc) the consumer wants quality along with a good price.

State Street forecasts the strong retail demand for ETFs in Australia will continue to expand and the next step will be the launch of ETF savings plans and models. https://lnkd.in/e-m99N8z

A Worried Consumer? Halyard's Weekly Wrap - 5/31/24 The second estimate of Q1 #GDP was released this week and showed a downward revision to growth from 1.6%, as was first estimated, to 1.3% in this revision. Also revised within the report was personal consumption, revised lower from 2.5% to 2.0%. Within the personal consumption category, durable goods sold were the main culprit to the revision lower, falling a revised -4.1% from the previously estimated -1.2%. Overall, the revision was as expected and did little to move the market. The Fed’s preferred #inflation gauge, the personal consumption expenditure, released this week, came in as expected. The measure rose 2.7% year-over-year and 0.3% over the March reading. That’s likely to assuage inflation concerns at the #Fed, at least until the next consumer price index is released in June. We don’t think it’s enough to put an early rate cut back on the table. Also released this week was the Chicago Business Barometer, a second-tier index that measures business confidence of businesses located within the city. The index registered 35.4, the third lowest reading since 1995. Suffice it to say that Chicago business owners are lacking confidence in economic growth going forward. We’ve observed during this earnings season that high-end market retailers have announced a slowdown in activity while the low-cost retailers have surprised to the upside. Target and Nordstrom reported disappointing earnings, while TJ Maxx, Walmart, and Burlington Stores, Inc. all announced better than expected earnings. Within the Nordstrom release it was noted that the loss was driven by their loyalty member segment, while gains in Nordstrom Rack discount store helped to offset losses at the department store. We are hesitant to call it a symptom of a worried consumer but it’s certainly worth taking note. Attention next week will be mostly about jobs, with eyes on the ISM employment report on Tuesday, #JOLTS job openings on Wednesday, and the non-farm payroll report on Friday. Non-farm #payrolls are expected to show 180,000 new #jobs created in May, up 5,000 from the April measure, while the #unemployment rate is expected to hold steady at 3.9%. #markets #investing

For years I have been questioning the buzz around buy now pay later, not only the ethical questionable offerings, but also the commercial promises made by incompetent consultants selling snake oil to decision makers. So all credit is evil, Sune? Nope, not at all, but strive for a version, that is inclusive and within ethic norms and at the same time can generate a revenue. It seems like all the “smart” players are now abandoning the ship and selling off BNPL portfolios, I just hope that you didn’t build your dreams of revenue solely on BNPL products https://lnkd.in/dQH5dG8Y

In a new academic study, Robinhood was found to provide significantly worse execution quality for retail options trades compared to other leading brokers. #robinhood #execution #options #trading #hiddenfees https://lnkd.in/dXG6QU-U