Task#1 Prepare a prospective client profile and pitch to your manager why they would be a good fit for J.P. Morgan
Centum, a Hedge Fund based out of Shanghai has an outstanding YTD performance of 39% through strategies such as systematic trend following and can potentially be even greater through J.P.Morgan's resources. J.P.Morgan offers developments in the voice, electronic and algorithmic execution landscape to the impact of regulation on liquidity, our Market Structure team can help you to cut through the noise. The Market Structure team provides a deep perspective of the market along with analyzing and commenting on the emergence of trends. J.P.Morgan have vast Market teams, one of these teams is the Market intelligence team. The Market intelligence team offers a unique perspective of market insights and ideas using a combination of fundamental analysis, global macro, data and quantitative techniques unlike no other. This market team can problem solve and focus on both tactical and long-term market themes to ensure Centum has the insight they need. Centum is exploring possibilities of expansion to new markets and JPMorgan is primarily based in the United States and is also a multinational investment bank and financial services. J.P.Morgan can provide opportunities to expand to different nations with clients all over the world including the world's most prominent corporations, governments, wealthy individuals and institutional investors. Centum has a strong foundation and great potential to expand to new opportunities and clientele. J.P.Morgan wishes to add value to Centum and potentially be one of the companies that J.P.Morgan can cooperate with while also providing services and greater opportunity in the near future.
Task#2 Analyze the current market environment and suggest an attractive investment opportunity to your client
US trade tensions between China are correlating to the stock exchange and the overall economy. As tensions increase, currencies between the countries tighten and begin to inverse. When demand for Chinese goods becomes evident, the USD (United States Dollar) purchasing power becomes skewed and exchanging the USD to CNY (Chinese Yuan) would strengthen the value of the CNY while the USD begins to weaken. This concept of supply and demand would also affect the currencies through imports and exports. A stronger exchange rate makes a country's exports more expensive, which can reduce demand for them. So a weaker yuan against the US dollar would generally make Chinese goods exported to the US cheaper, increasing demand, while making US exports to China more expensive, reducing demand. This most obvious trade is to short the dollar against the Yuan.
But based on the current imposing tariffs the US government is imposing a 25 percent tariff on approximately 250 billion on imports in China, the other obvious trades would be to short equities such as NVDA (Nvidia) and CAT (Caterpillar) are companies that are in high demand with low supply and are mainly manufactured in China. In section 301 for the tariff ther united states is imposing a 25%
Task#3 Understand trade execution and the post-trade cycle
Liquidity is a high volume of activity in a market or also referred to as the depth of buy and sell orders. A liquid market is one where you can buy or sell quickly and the bid-ask spread could be used as an indicator for liquidity. The bid price is the amount a buyer is willing to pay for a particular security, while the asking price is the amount a seller will take for that security. If the prices are close together, it means the two parties have a similar opinion. On the other hand, if the price difference is wider, that means they don't see eye-to-eye. But in reality, the asking price is always a little higher than the bid price. The difference between the bid and ask prices is what is called the bid-ask spread. This spread basically represents the supply and demand of a specific asset, including stocks. Bids reflect the demand, while the ask price reflects the supply. The spread can become much wider when one outweighs the other. The most evident factor is a security's liquidity or the volume (The number of shares traded on a daily basis). Often stocks and indexes that have large trading volumes will have narrower bid-ask spreads than those that are infrequently traded. A tight bid-ask spread can indicate an actively traded security with good liquidity. Meanwhile, a wide bid-ask spread may indicate just the opposite. If there is a significant supply or demand imbalance and lower liquidity, the bid-ask spread will expand substantially. The bid-ask is a great indicator for liquidity, as two parties negotiate for a price with macroeconomic factors, investors make decisions based on these spreads intraday or on their investments, in general, manage risk and make more desirable trades.
Task# 4 Deliver a client pitch over a phone call about our post trade services
Hey client, how are you doing today? Our company at J.PMorgan sees how you are looking to go to Tender for a new provider. While Tender is a good choice, with several resources, and data and analytics, JPMorgan sees concerns over their service offers and limited resources. At JPMorgan, we offer several accounting teams that go above and beyond expectations while being available 24/7. JPMorgan also provides a Market intelligence team with a unique perspective of market insights and ideas using a combination of fundamental analysis, global macro, data and quantitative techniques unlike no other. Not only does JPMorgan provide an account and data team, our company offers several teams that can problem solve issues and a vast selection of resources at your disposal. The Market Structure team provides a deep perspective of the market along with analyzing and commenting on the emergence of trends. This is one of the many teams ready to be of service at any moment of the day. J.P. Morgan is a global leader in financial services, offering solutions to the world's most important corporations, governments and institutions in more than 100 countries. We aim to be the most respected financial services firm in the world, serving corporations and individuals. J.P.Morgan wishes to add value, create a lasting impact in our communities, and potentially be one of the companies that J.P.Morgan can cooperate with while also providing services and greater opportunity in the near future.