Standard & Poor’s (S&P) has joined the two other credit ratings agencies (CRAs), Moody’s and Fitch Ratings, in allocating a negative outlook to the UK’s coveted AAA rating.
“The outlook revision reflects our view that we could lower the ratings on the UK within the next two years if fiscal performance weakens beyond our current expectations,” S&P said in a statement.
“We believe this could occur in particular as a result of a delayed and uneven economic recovery, or a weakening of political commitment to consolidation.
“We expect economic growth to rise slowly in the medium term, with net general government debt as a percentage of gross domestic product (GDP) continuing to rise in 2015, instead of stabilising in 2014 as previously expected.”
S&P did not call upon the UK government to abandon its austerity programme, but warned: “We continue to believe that government’s efforts over the next few years to engineer the planned correction in the UK’s fiscal accounts will likely drag on economic growth.”
The UK, Germany and Canada are the only major world economies that have managed to retain an AAA rating. Moody’s and Fitch both revised the UK to negative outlook in H112.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.