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Explore Global Markets
Welcome to Barclays' Global Markets Division. The work we do is affected by global events every hour of the day, making it a fast-moving and fascinating place to build a career. In financial and commercial terms, this is where the world happens first.
To see how these events play out in our teams, select an example from the menu to the left. Or to find out about one of our colleagues simply click on them below.
Oil price spike
A spike in oil prices can impact markets around the world. A number of teams across Barclays have to be quick to respond – tracking what these changes mean and advising clients on how this might impact asset prices.
Find out how we reacted when oil prices rose here.
For Cagdas, a spike in oil prices meant assessing the impact of its sudden rise on the economic outlook in developed markets.
Cagdas first consulted with our Commodities Research colleagues to assess whether the spike was likely to be a temporary event, or was going to have a more lasting impact.
Cagdas first consulted with our Commodities Research colleagues to assess whether the spike was likely to be a temporary event, or was going to have a more lasting impact.
It was important to get to grips with its impact on the US economy. As its economy is much more dependent on consumer spending, the impact of disposable income on economic growth is greater in the US.
Selina was working at the European Equity Sales desk. She called all her institutional and hedge fund investor clients to make sure they knew about the rise in oil prices, and to give a broad overview of which stocks might be affected.
The next day, our airlines analysis experts published a research note recommending investors sell shares in airlines. Selina set up and attended a number of meetings, so that her clients could meet with our oils and airlines analysts.
The next day, our airlines analysis experts published a research note recommending investors sell shares in airlines. Selina set up and attended a number of meetings, so that her clients could meet with our oils and airlines analysts.
As the spike took effect, Selina continued to keep her portfolio manager clients abreast of further news on a variety of companies who might be affected - from oil companies and airlines to chemical companies. She also kept them informed about other external factors that might be relevant to their shares.
On the European Equity Sales Trading desk, Rachel called her clients – traders who work at big investors – to walk them through what had happened to the oil price.
She fielded a number of buy orders from pension and hedge funds eager to buy oil company shares. This is because they were set to benefit from the increase in selling prices of oil.
She fielded a number of buy orders from pension and hedge funds eager to buy oil company shares. This is because they were set to benefit from the increase in selling prices of oil.
She stayed in touch with her clients over the course of the day and the following weeks, with news of any major buying or selling activity in the oil sector. When her clients wanted to buy or sell more shares, she liaised with the Oil Trading team to help get her clients the best prices.
Tom was trading European oil company shares with the Equity Trading team, and was already used to determining the trading price of leading multinational oil companies. On a daily, hourly and sometimes minute-by-minute basis, he would keep abreast of current events that impacted prices, as well as tracking supply and demand of the shares from buyers and seller.
On the morning after the spike, a significant volume of shares traded. One of Tom’s responsibilities was to make sure that the price reflected buying and selling patterns.
On the morning after the spike, a significant volume of shares traded. One of Tom’s responsibilities was to make sure that the price reflected buying and selling patterns.
Market makers will often help clients buy or sell shares. On this occasion, oil company shares responded to the increase in oil prices by rallying 5%.
Working as the Equity Research Analyst covering airline stocks for a number of leading global airlines, Oliver had to analyse how the rise in oil prices affected these companies, so he could communicate that to our institutional investor clients. Oil price increases are never good news for airline companies, whose main cost is jet fuel.
Oliver spoke to the management teams of each of the airlines under his stock coverage, to find out what hedging policies they had in place. Hedging helps protect airlines from increasing jet fuel prices.
Oliver spoke to the management teams of each of the airlines under his stock coverage, to find out what hedging policies they had in place. Hedging helps protect airlines from increasing jet fuel prices.
After assessing their different policies, Oliver ran the numbers through his model to calculate if he needed to downgrade his expectations of these airlines’ future profits. As a result, he cut one of the airline’s shares to a sell recommendation in a published research note the next day.
Sabrina in FX Sales spoke to a wide variety of institutional and hedge fund clients. She explained the changes in the oil price and they discussed trades in response to the new information.
Sabrina discussed the merits of buying Russian roubles, Canadian dollars and Japanese yen with investors, as she knew that historically there’s been a good correlation between these currencies and the oil price.
Sabrina discussed the merits of buying Russian roubles, Canadian dollars and Japanese yen with investors, as she knew that historically there’s been a good correlation between these currencies and the oil price.
On the trading desk, clients can trade oil futures or a basket of stocks related to oil, such as oil producers, refiners and exploratory companies. Knowing the market and how it was changing, Matt could quote prices and help them trade in the most appropriate way - exposing them to risks as necessary and maximising investment.
Working closely with the Research Analysis and Sales teams, Alan sought to understand the impact on each of his client’s stocks – all related to the price of crude oil (including oil and gas companies and airlines). He drew on his knowledge of trading volumes during such times, and used extra caution when executing trades.
Working in FX Structuring, Wenjie understood the importance of consulting our existing research on the potential evolution of markets during oil price changes. As such, he knew that each client’s hedging strategy needed to be revisited. So he consulted with colleagues in Commodities to design appropriate products for clients – helping them achieve their budget rates and hedge ratios.
Damla looked at inflation projections, knowing oil prices have a direct impact on rates generally. The changes, along with the geopolitical stresses that had in part caused the spike, were meaning that many clients were keen to hedge themselves on inflationary pressures or the back of bond holdings. Contacting every client regularly, Damla explained the risk associated with oil prices on rates and helped them hedge themselves within the constraints of the market.
In EM Credit Sales, Ali tracked countries in emerging markets as the oil spike happened. Working closely with the Research team and his clients, he made sure any credit movement was flagged up and dealt with.
He also drew on his internal network to keep on top of the fast-moving situation. He arranged a conference call with a Macroeconomist and Commodities Analyst, to discuss possible ways forward for his clients. After advising his clients, they agreed to add exposure via newly developed bond purchasing strategies.
He also drew on his internal network to keep on top of the fast-moving situation. He arranged a conference call with a Macroeconomist and Commodities Analyst, to discuss possible ways forward for his clients. After advising his clients, they agreed to add exposure via newly developed bond purchasing strategies.
In Equity Research, Patrick realized that the oil price spike would have significant ramifications for a number of economies around the world.
Applying historical data analysis to the current situation, he wrote a research note explaining how the move might affect the US, Europe and China. His focus was on his expectations of GDP growth and the balance of payments in each country that he thought would be affected.
Applying historical data analysis to the current situation, he wrote a research note explaining how the move might affect the US, Europe and China. His focus was on his expectations of GDP growth and the balance of payments in each country that he thought would be affected.
He called the senior decision-makers at all of Barclays major institutional and hedge fund clients. Then he spoke to the Equity, Credit and FX Sales teams, to talk through his ideas and make sure that these teams understood the implications.
Later that morning Patrick appeared on CNBC and was also interviewed by other relevant media, who called on his expertise to explain what was happening.
Later that morning Patrick appeared on CNBC and was also interviewed by other relevant media, who called on his expertise to explain what was happening.
In Equity Research, Vicki realized that the oil price spike would have considerable ramifications for the input costs of a number of companies that she covered, where fuel is one of their biggest costs.
Vicki called the management teams of those companies, to discuss the sensitivity of higher fuel prices on the companies’ future profits.
Vicki called the management teams of those companies, to discuss the sensitivity of higher fuel prices on the companies’ future profits.
As a result of her analysis, Vicki published a research note outlining her views on the implications for each company’s stock price.
After publishing her research, Vicki contacted all her institutional clients, to discuss this analysis, what impact this might have on her clients’ investments, and to identify solutions to help mitigate this.
After publishing her research, Vicki contacted all her institutional clients, to discuss this analysis, what impact this might have on her clients’ investments, and to identify solutions to help mitigate this.
Devaluation
When currencies devalue, the impact can be sudden and severe. Our teams make sure we’re best prepared to help our clients handle the consequences.
Find out how we handled the most recent devaluation here.
Cagdas was working on the Global Research team as a Eurozone Rates Strategist. When the currency devaluation occurred, he acted fast.
First, he checked potential ‘contagion’ channels (i.e. how the event might impact emerging market economies, and then developed economies) and examined financial assets, including the corporate bond and stock markets.
First, he checked potential ‘contagion’ channels (i.e. how the event might impact emerging market economies, and then developed economies) and examined financial assets, including the corporate bond and stock markets.
This allowed him to assess the seriousness of the situation. From that, he then developed short-term trade ideas to limit the impact of the downturn.
Vicki is a European Leisure Analyst within Equity Research. As a result of the devaluation, she produced a research note analysing the hotels and other leisure companies that she covers, and changed her future forecasts for the companies.
She concluded that devaluation in the Euro against the US Dollar would mean that revenues earned in the United States (i.e. in US Dollars) were more valuable to European-based hotel companies.
She concluded that devaluation in the Euro against the US Dollar would mean that revenues earned in the United States (i.e. in US Dollars) were more valuable to European-based hotel companies.
Once Vicki had published the research note, she called a number of her clients – who are institutional investors who might own a number of shares in European hotel companies – to make sure that they understood the impact of the devaluation on the earnings forecasts of these companies.
As part of the FX Structuring team, Wenjie liaised with our sales coverage experts to find out what most concerned our clients. A thorough risk-analysis was conducted, looking at FX, Rates and Credit issues. Wenjie then brainstormed with colleagues from Macro Structuring to develop solutions appropriate for each client. After that, ideas were pitched to the Sales team and each client, making sure they were fully informed and aware of the risks involved.
As an EM Trader, Damla analysed the market – closely monitoring each change. Aware that regional markets can affect each other, Damla knew it was important to check how each country was reacting.
In particular, she checked the cost of insuring against debt default, and the FX and Rates markets: any moves in these could impact clients, so Damla kept each client informed about the markets they had exposure to and the impact of capital flows from one market to another.
In particular, she checked the cost of insuring against debt default, and the FX and Rates markets: any moves in these could impact clients, so Damla kept each client informed about the markets they had exposure to and the impact of capital flows from one market to another.
Damla knew that the devaluation had the potential to create new risks for her clients’ portfolios. So as well as keeping them up-to-date, she discussed with her clients how different financial products could be used to mitigate these risks.
In EM Credit Sales, Ali tracked developments as economic conditions deteriorated and investors became increasingly nervous. Concerned clients were calling, seeking information about how their bonds were trading in such a challenging economic environment.
He called his clients regularly to keep them abreast of the implications of the default, including whether those with exposure in Credit Default Swaps (insurance policies that protect against defaults on government and company bonds) had reached the point where clauses in their contracts had been triggered.
He called his clients regularly to keep them abreast of the implications of the default, including whether those with exposure in Credit Default Swaps (insurance policies that protect against defaults on government and company bonds) had reached the point where clauses in their contracts had been triggered.
Proactively, Ali also kept his eye on any opportunities the devaluation created. Having taken careful, informed investment decisions, some of his clients were in a position to take advantage of mis-pricing that appeared in the volatile markets.
Martha works in Rates Sales, covering developed markets. She immediately got in touch with her EM Sales colleagues to find out more information on the impact of the default.
She then called clients who look at a wide range of assets and countries to hear their concerns and discuss the potential impact of the devaluation – updating them regularly as the situation changed and more information from expert colleagues came through.
She then called clients who look at a wide range of assets and countries to hear their concerns and discuss the potential impact of the devaluation – updating them regularly as the situation changed and more information from expert colleagues came through.
She presented several trade ideas that both the Trading and Strategy desks felt might make the most of the market movements. Martha then wrote and circulated a report that gave a broad summary of the themes and views expressed by her clients.
When the default occurred, Alan knew that such events could reduce clients’ appetite to take risk and therefore trigger a sell off in equities, particularly in emerging markets. He knew that the situation was likely to make the Japanese currency (Yen) appreciate in value against other currencies, as it is seen as a safe haven for investments in volatile times. In turn, this was likely to adversely affect share prices and the exchange rate. Alan discussed theses changes with the sales traders, and managed the risks of his clients.
Working on the Exchange Traded Funds trading desk meant that Matt’s team were directly impacted by the currency devaluation. When the country defaulted on its bonds, he checked the trading book to see if there was any exposure to the markets directly affected.
After that, he liaised with the Sales and Sales Trading teams to develop trade ideas to show clients how he could help them. Matt dealt with many clients who became buyers of debt funds; the default had been flagged well in advance, and so client investors were now ideally positioned to act accordingly.
After that, he liaised with the Sales and Sales Trading teams to develop trade ideas to show clients how he could help them. Matt dealt with many clients who became buyers of debt funds; the default had been flagged well in advance, and so client investors were now ideally positioned to act accordingly.
Partnering with fund managers
In a constantly changing economic environment, clients expect us to be able to identify risk and opportunity, share ideas and execute their strategies. Our teams work closely – together and with each client – to provide the very best service, developing relationships that really pay off.
See how we responded to views of interest rates rising faster than expectations here.
Cagdas, looked at whether our research views on the economics - particularly the strategy side - tallied with the needs of his client.
Drawing on our latest research, the team discussed this with the client. After that, they gauged the risk appetite of the client and suggested options. A trade was then decided upon – one that we were confident provided the best solution.
Drawing on our latest research, the team discussed this with the client. After that, they gauged the risk appetite of the client and suggested options. A trade was then decided upon – one that we were confident provided the best solution.
Siddi, a trader, knew that a faster-than-expected rise in UK rates would not impact most ABS bonds directly, as the majority of them are floating rate bonds. However, changes in rates can impact underlying collateral – and Siddi could see that ABS bonds might be affected indirectly.
Siddi concluded that buying into alternative country bonds would ensure more stable cash flows.
Siddi concluded that buying into alternative country bonds would ensure more stable cash flows.
In situations like this, Matt found that working for a full-service investment bank really paid off. He looked at a huge range of possible products to offer his clients and found interesting solutions – less obvious products that actually provided better returns.
Being able to look at the bigger picture, Matt could predict how the housing market would be affected by rate hikes from the central bank and what the knock on effect would be for different markets. On the back of this, he and his team built a custom index, which enabled his clients to profit in an extremely challenging economic situation.
Being able to look at the bigger picture, Matt could predict how the housing market would be affected by rate hikes from the central bank and what the knock on effect would be for different markets. On the back of this, he and his team built a custom index, which enabled his clients to profit in an extremely challenging economic situation.
Sarah used her expertise to help her clients – some of whom had strong ideas on the best course of action to take. She helped clients sell gilts (UK government bonds) from their portfolios to invest in other assets.
Executing trades and hedging any risks, she also made sure the bond or sector offers were right for her clients.
Executing trades and hedging any risks, she also made sure the bond or sector offers were right for her clients.
Damla realised the importance of being fully versed on interest rates, exposure and hedging options. Arranging sales and conference calls, she made sure she knew all of the information and implications of rates hikes. Knowing each country reacts differently, she also analysed all possible outcomes and informed clients accordingly – helping execute necessary hedges in the markets and making sure they understood how changes to the world’s markets impacted them.
Working in FX Structuring, Wenjie sat down with the Sales Coverage team to understand each client’s existing exposure in more detail. After this, he organised conference calls with clients in order to understand their hedging objectives and risk appetite.
After this, he brainstormed ideas with the Macro Structuring team, to make sure the overall portfolio was diversely spread across asset classes in a way that would meet the objectives the client had set.
After this, he brainstormed ideas with the Macro Structuring team, to make sure the overall portfolio was diversely spread across asset classes in a way that would meet the objectives the client had set.
Pira knew that in an environment where rates are expected to rise quicker than expected, the right strategy has to be put in place quickly. After choosing between reallocating fixed-coupon bonds and shortening the duration of the portfolio, Pira worked to protect each client’s investment as much as possible.
Stock market launch
Our investment banking franchise developed a strong relationship with a UK based leisure company with a diverse collection of global leisure assets - including hotels, resort theme parks and city centre tourist attractions. When the private equity owners of this leisure company decided to pursue an IPO (initial public offering, or stock market launch) in the UK, we were there with the expertise they needed.
See how it happened here.
On the day of the IPO announcement to the market, Vicki (and Patrick), within Equity Research, produced a research note analyzing the operations of the company, providing independent analysis expressing Barclays Research views.
They then spent the next couple of weeks travelling across the UK, Europe and the US meeting potential investors and educating them on the IPO. On the day of the IPO announcement, Vicki (and Patrick) also gave a presentation about the company to our European Equity Sales team.
They then spent the next couple of weeks travelling across the UK, Europe and the US meeting potential investors and educating them on the IPO. On the day of the IPO announcement, Vicki (and Patrick) also gave a presentation about the company to our European Equity Sales team.
On the day of the IPO announcement to the market, Patrick (and Vicki), within Equity Research, produced a research note analyzing the operations of the company, providing independent analysis expressing Barclays Research views.
They then spent the next couple of weeks travelling across the UK, Europe and the US meeting potential investors and educating them on the IPO. On the day of the IPO announcement, Patrick (and Vicki) also gave a presentation about the company to our European Equity Sales team.
They then spent the next couple of weeks travelling across the UK, Europe and the US meeting potential investors and educating them on the IPO. On the day of the IPO announcement, Patrick (and Vicki) also gave a presentation about the company to our European Equity Sales team.
When the news of the upcoming IPO was announced, and when the Research note was distributed in hard copy to clients, Selina, on the European Equity Sales desk, called all her institutional and hedge fund investor clients to tell them about the company and its upcoming listing.
As a result, she then set up and attended a number of meetings between her clients and our Research Analysts as well as setting up meetings with the company’s management team. She also provided feedback on what investors thought about the company and the valuation.
As a result, she then set up and attended a number of meetings between her clients and our Research Analysts as well as setting up meetings with the company’s management team. She also provided feedback on what investors thought about the company and the valuation.
Once the IPO started trading, Selina stayed in touch with all the investors who bought shares, to keep them up-to-date.
Rachel, on the European Equity Sales Trading desk, called all her clients (traders at the institutional and hedge fund investor clients) on the morning of the IPO announcement and kept in touch with them until listing date. She discussed the announced price of the transaction on the listing date with them and from two weeks prior to this when books opened she ensured each order placed with her went into the Equity Syndicate’s order book.
On the listing date of the IPO, she communicated each client’s allocation in the IPO (how many shares they were allocated by the Syndicate Desk to purchase at the IPO’s price), and then she stayed in touch over the course of the day and the following weeks with news of any major trading flows in the IPO.
On the listing date of the IPO, she communicated each client’s allocation in the IPO (how many shares they were allocated by the Syndicate Desk to purchase at the IPO’s price), and then she stayed in touch over the course of the day and the following weeks with news of any major trading flows in the IPO.
When her clients wanted to buy or sell more shares in the IPO, depending on the market price, she liaised with our Equity Trading desk to help get the best prices.
Ben, who works within Equity Syndicate, announced the transaction to the Equities Trading floor a month before the listing date. During the IPO process, he was in daily contact with the company management, and the other investment banks in the IPO syndicate. Ben helped share investor feedback and determine which investors the management team should meet with. As a result of the client feedback, Ben helped the IPO syndicate, company management team and the private equity sellers, come up with the best price range at which they would offer shares to investors. Once the orders had been taken, Ben helped allocate shares to the different investors, according to their feedback and the company’s views in accordance with Barclays’ Allocation Policy.
Tom, who works on the European Equity Trading desk, assesses the fair trading price of the IPO on a daily, hourly and minute-by-minute basis based on how the market prices are published and the supply and demand. He had to respond swiftly to market moving events, and supply and demand of the shares.
On the morning of the IPO, knowing a significant volume of shares would trade, he had to make sure that his trading price reflected the fair levels for buyers and sellers. Market makers will often facilitate client trades (which means that they can help clients buy or sell shares) by offering liquidity from Barclays own trading book.
On the morning of the IPO, knowing a significant volume of shares would trade, he had to make sure that his trading price reflected the fair levels for buyers and sellers. Market makers will often facilitate client trades (which means that they can help clients buy or sell shares) by offering liquidity from Barclays own trading book.
Quantitative easing
The Global Financial crisis created an economic backdrop not seen since the 1930s, causing the US Federal Reserve and central banks in various other jurisdictions to put into place quantitative easing programmes. As the US economy recovered, the Fed began over time to reduce its monthly purchases of US Government bonds back down to zero. Our team was there to tackle the changes - advising clients on market implications and evolving strategy.
Find out how we got involved here.
As Eurozone Rates Strategist in Rates Research, Cagdas knew the reduction in Quantitative Easing was very relevant for the Interest Rates market. But he also knew that the market implications would not be easy to gauge quickly, as there was no precedent for what was happening.
Cagdas first talked to his colleagues in US Research to get their views on the impact of the changes for the US Interest Rate market. He then came up with the best trade ideas for investors in Eurozone Government bonds and swaps, taking into account the likely risk appetite of clients.
Cagdas first talked to his colleagues in US Research to get their views on the impact of the changes for the US Interest Rate market. He then came up with the best trade ideas for investors in Eurozone Government bonds and swaps, taking into account the likely risk appetite of clients.
A client wanted to discuss the US Federal Reserve’s Quantitative Easing programme. So, the first thing James in Markets did was to speak to the Sales team: together they worked to understand the exact details of what the client was asking for, before thinking through the best trade ideas and what recommendations they would make, bearing in mind the client’s needs, business model, risk appetite and products they trade.
During the call, James highlighted the best ideas to the client, the rationale for the trades and also the risks and potential downsides. Here, the impact of the tapering of Quantitative Easing was uncertain, so there was a lot of discussion around when the tapering would signal the start of the rate hiking cycle, which would affect the level and shape of the yield curve in the US – as well as having various knock-on effects on the European market.
Following the call, the client asked to put on trades with Barclays, so James worked to provide them with the liquidity they needed, and then to hedge the risk they would face from these trades.
Following the call, the client asked to put on trades with Barclays, so James worked to provide them with the liquidity they needed, and then to hedge the risk they would face from these trades.
For Siddi, the fact the US Fed would be gradually tapering (reducing) its purchases of both US government bonds and mortgage bonds had interesting implications. Siddi’s focus is on the spread between the yield on mortgage bonds and government bonds, and the fact that the Fed was going to reduce its purchases of both types of bonds meant it wasn’t immediately clear how the relative prices (and therefore yield spread) of the two instruments would evolve.
After considering all the factors, Siddi decided the spread was likely to widen (increase). She then compared her view with those of her research colleagues and ultimately discussed trading strategies with sales colleagues and clients that she thought might help clients protect themselves against unfavourable market movements.
After considering all the factors, Siddi decided the spread was likely to widen (increase). She then compared her view with those of her research colleagues and ultimately discussed trading strategies with sales colleagues and clients that she thought might help clients protect themselves against unfavourable market movements.
Ali first spoke to his clients (who range from benchmarked institutional investors to total return-focused fund managers), knowing they are very sensitive to developments in Quantitative Easing. One client in particular wanted to discuss the impact of what was happening in various countries, and Ali was able to respond with both his insight and that of our Research team. He also discussed courses of action the client could take that might give them an investment solution that better suited them in changing circumstances.
After this, he consulted with contacts across Barclays, to keep up-to-date with the changing situation. This allowed him to help his clients by finding them efficient solutions that suited their immediate and long-term goals.
After this, he consulted with contacts across Barclays, to keep up-to-date with the changing situation. This allowed him to help his clients by finding them efficient solutions that suited their immediate and long-term goals.
Matt’s role in Equities Trading often involves thinking very innovatively for the firm’s clients. In this case, he worked out how the macro-economic policy changes would affect his US and emerging-market clients, by looking at what had happened historically and what he and the team thought might happen next.
He suggested that his clients reduce their holdings of equities (shares) and government and corporate bonds as we approached the time when the Fed would start reducing its purchases of US Government bonds. For clients who needed to reduce their emerging market asset holdings, he was also able to give his views on how best to do this from the point of view of being able to find others in the market who would want to buy those holdings.
He suggested that his clients reduce their holdings of equities (shares) and government and corporate bonds as we approached the time when the Fed would start reducing its purchases of US Government bonds. For clients who needed to reduce their emerging market asset holdings, he was also able to give his views on how best to do this from the point of view of being able to find others in the market who would want to buy those holdings.
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