Author: Lily Harper

Stay informed with free updatesSimply sign up to the Investments myFT Digest — delivered directly to your inbox.Nearly half of UK investors put their trust in social media, finfluencers and AI tools when making financial decisions, as unregulated sources continue to pull consumers away from professional advice.Two-fifths of UK investors have used social media to inform financial decisions over the past two years in spite of nearly 50 per cent of consumers expressing trust in financial advisers, new research from investment platform Fidelity International found.Just one in three investors who responded to Fidelity’s survey had used a professional qualified adviser…

There is a buzz around bitcoin. The world’s oldest and best-known cryptocurrency is trading close to record highs as enthusiastic investors bet on greater political and regulatory support from Donald Trump’s administration.The digital currency has climbed by more than 50 per cent since Trump’s election victory in November and has wiped out all the losses sustained when the US president threatened potentially damaging trade policies in April. Its increase of 20 per cent-plus since his tariff “liberation day” has outperformed gold and US stocks. Even war in the Middle East has failed to knock it off its perch above $100,000,…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The writer is chief executive of Minerva Analytics, a shareholder advisory firmThe firms that advise big shareholders on corporate governance matters and help them vote are under siege. A simmering backlash over the activities of proxy advisory firms has mutated into an all-out assault in the US from multiple directions.The attacks have included congressional hearings, legal actions, regulatory pressure and recent comments by JPMorgan chief executive Jamie Dimon who reportedly called them a “cancer”. The proxy advisory firms are accused of cartel-like…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.British stocks are on track for their best half-year since 2021. Meanwhile, concerns about unpredictable trade policy and spiralling government debt have shaken a long-held investor belief in “US exceptionalism”. If ever there were a time for British investors to buy local, surely it would be now?Instead, while foreign investors are pouring in, Brits seem to be using the rally as yet another opportunity to sell. Overseas inflows into UK equities recently hit their highest level in three years, according to data…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Lawyers and bankers in Switzerland are warning of a UK-style exodus of the wealthy ahead of a referendum on a 50 per cent inheritance tax for the super-rich. The Alpine nation is due to hold a popular vote in November on the introduction of a federal tax on inheritances and gifts worth more than Sfr50mn ($61mn). Unlike existing cantonal duties that would still apply, the proposal does not include an exemption for spouses or direct descendants.The looming vote comes after the UK…

The UK’s financial services sector is one of the largest among developed nations in terms of the contribution it makes to national economic output.Recent data shows that it contributes more than £200bn annually to the UK economy, coughs up £80bn in tax, or £110bn if you include linked professional services, and runs healthy trade surpluses with other nations, though the value of this overall has decreased in recent years, in part because of Brexit. It plays a key role in driving economic growth and corporate success, as well as providing financial security for individuals. Investors can tap into this ecosystem…

Stay informed with free updatesSimply sign up to the Utilities myFT Digest — delivered directly to your inbox.Thames Water may be forced to restate its accounts published last year, amplifying concerns over the financial stability of the UK’s largest water company.Thames Water — which is attempting to avert renationalisation through a rescue bid from its creditors — is trying to understand the consequences of having to restate key figures in its accounts for the year ending March 2024, according to documents seen by the Financial Times. A restatement could cause further breaches of Thames Water’s debt covenants, strict terms that mean…

Stay informed with free updatesSimply sign up to the US financial regulation myFT Digest — delivered directly to your inbox.The US audit regulator created in the wake of the Enron scandal has been granted a reprieve after the Senate parliamentarian ruled that Republicans’ plan to shutter the agency as part of their giant tax and spending bill would violate Senate rules.Republicans had planned to scrap the Public Company Accounting Oversight Board and hand its powers to inspect and fine audit firms to the Securities and Exchange Commission, a measure they said would save money for both the US taxpayer and…

It was 25 years ago that the world of investment and funds in Europe experienced a revolution, with the arrival of the continent’s first exchange- traded funds (ETFs). The choice available now is staggering and, as with all transformative changes, there is a mix of hype, extremely useful stuff, and frankly, scary elements. I wrote my first book about ETFs for the FT back in 2009. Even I find the pace of change incredible.The story began on April 11 2000, with the listing on the Deutsche Börse of the LDRS DJ Stoxx 50 and LDRS DJ Euro Stoxx 50, sponsored…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Hedge fund moguls keen to cement their fortunes should try to emulate their counterparts in the private equity industry. Millennium Asset Management, the giant hedge fund seeking to sell a minority stake in itself at a valuation of $14bn, is taking steps in this direction. Hedge funds have created enormous wealth for founders and investment staff. Many have served clients well too. Turning the businesses themselves into appealing investments has been trickier — in contrast with buyout firms that have gone public…