Market News Roundup for Investment Bank Interviews

This week we shall continue to look at the top market news and key 2022 trends to watch out for. Because regardless of whether you need to crack an #internship or #gradjobs, you must ace the market-related #interview questions.

🎯 2022 Key Changes: Inflation may persist and settle above pre-Covid levels. New virus strains may delay the economic restart but won’t deflect it. We can expect more moderate equities returns with Central banks slashing monetary support (as the restart does not need stimulus). 
 
🎯 M&A: It’s a bullish outlook for global M&A in 2022 with the collective value of 2021 deals being almost US$4.3 trillion. Automotive, energy, financial services, TMT, and health care rank as the top five most-active sectors for this year. According to a recent KPMG report published in Q4 2021, macro-economic and micro-economic factors impacting M&A include high valuations, economic variables, such as overall liquidity, fierce competition for a limited number of highly valued targets, and supply chain factors. PE firms will continue to play a big role in deal activity and one expects SPAC to take on a bigger focus.
 
🎯 IPO: The China and Hong Kong IPO markets forecast will continue to thrive ahead, continuing its 2021 success (think Kuaishou, JD.com

, Baidu, Bilibili, and Evergrande among others). While more than 180 companies in Hong Kong are set for IPO release, the biggest global IPOs to watch out for would be Reddit, Stripe, Patreon, Discord, Instacart, and Databricks.   
 
🎯 Tax: A global corporate minimum tax rate of 15% that was agreed upon by 136 countries in 2021, will shape up in 2022- its impact on MNCs will be important to track.
 
🎯 Fed Rates: The European Central Bank, facing a weaker inflation outlook, will likely stay easier on policy. BlackRock warns of potential Fed rate hikes although they’ll remain more tolerant of inflation. Having achieved the inflation target, the Fed’s interpretation of its employment mandate will determine the timing and pace of higher rates.
 
🎯 Climate Change: Investing in developed market (DM) equities will be preferable over emerging markets (EM) as we navigate the net-zero pledge to combat climate change. Climate-resilient sectors like Technology and Healthcare will be the potential beneficiaries.

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