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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Vicki called the management teams of those companies, to discuss the sensitivity of higher fuel prices on the companies’ future profits.
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.
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.
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.
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.
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.
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.
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.
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.
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 concluded that buying into alternative country bonds would ensure more stable cash flows.
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.
Executing trades and hedging any risks, she also made sure the bond or sector offers were right for her clients.
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.
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.
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, Patrick (and Vicki) also gave a presentation about the company to our European Equity Sales team.
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.
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 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.
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.
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.
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.
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 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.
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.