Strategic Alternatives

Sterling markets have had a rough ride over the last few weeks. In part this is against the backdrop of the oil price shock, but it is also due to the domestic political uncertainty that has once again come to the fore. Peter Schaffrik, Head of UK/European Rates & Economics, and Cathal Kennedy, Senior UK Economist, unpick the difficult situation, provide a view on the outcome of the recent turmoil along with an outlook on what the political landscape in the UK might look like in the months and years to come.

Once defined by low-cost index exposure, ETFs are increasingly used to deliver active strategies, structured outcomes and targeted portfolio solutions across global markets. In this episode, Bryan Johanson, Head of North American Client ETF Markets, and Valerie Grimba, Global ETF Strategist, examine how innovation, market structure and investor demand are redefining what ETFs can do – and what comes next.

The global banking sector is navigating a crosscurrent of geopolitical uncertainty, a historic regulatory reset, and powerful structural forces — from AI adoption to the rise of private credit and stablecoins. In this episode, Gerard Cassidy and Anke Reingen, Co-Heads of Global Financials Research at RBC Capital Markets, discuss where U.S. and European banks stand today and what investors should be watching next.

• Banks’ fundamentals are strong, but the sector is vulnerable to sustained high oil prices.
• Smaller regional banks are outperforming the market.
• AI deployment, consolidation, and a resilient credit outlook are growth drivers.
• U.S. regulators are supportive; European regulation is softening to match.
• U.S. commercial loan growth is accelerating, supported by tax changes.
• Investment banks are posting growth and could benefit from a revival in IPOs.

Chapter markers:

• Introductions [00:07]

Host Joe Coletti introduces the podcast and guests: Gerard Cassidy and Anke Reingen, Co-Heads of Global Financials Research. They discuss the strong underlying fundamentals of the banking industry, despite continuing risk from prolonged war in the Middle East.

• Growth Drivers [06:58]

AI deployment, the growth of stablecoins, and continuing consolidation are among the main structural themes driving growth. Loans to NFDIs are a potential concern but banks are less vulnerable than the private credit sector.

• Regulation [13:30]

U.S. regulation is pro-bank, and the easing of capital requirements will feed balance sheet growth, dividend payments, acquisitions, and stock buybacks. Proposed regulation in Europe may soften to ensure its sector is not disadvantaged.

• Lending Volume [18:15]

Commercial loans, bolstered by tax changes, are the biggest element of U.S. loan volume growth. Incentives in Europe also boosted corporate loans, but confidence has since declined.

• Investment Banks [22:48]

Deregulation is strengthening the deal pipeline for investment banks. A rush to M&A before the end date of the U.S. administration could benefit them further.

From fragmenting global power to widening gaps in health and wealth, disruptive forces are reshaping industries, economies and societies. RBC’s latest Imagine research identifies five new converging themes and analyzes how they might play out. In this episode, Nik Modi, Global Co-Head of Consumer Research, and Robert Kwan, Head of Global Power Utilities and Infrastructure Research, look ahead to the implications for policy, trade, and individuals.

• Five new forces of exponential change are explored in RBC’s latest Imagine research.
• These cross-sector trends are reshaping individual consumer experiences as well as geopolitics.
• Transformative technologies are starting to revolutionize production and supply.
• Geopolitical convulsions provide an opportunity for North American energy export.
• Businesses need to adopt strategies to stay resilient and thrive in this dynamic environment.

Chapter Markers

• Introductions [00:10]

Host Joe Coletti introduces the podcast and guests: Nik Modi, Global Co-Head of Consumer Research, and Robert Kwan, Head of Global Power Utilities and Infrastructure Research. They summarize the RBC Imagine research project and the latest update, which identifies five new globally transformative forces.

• Consumer Experience [05:53]

The convergence of global forces is set to impact consumer experience and behavior, including through greater personalization. Retail and commerce can respond by transforming their business models.

• Tech and Energy [12:59]

Speed to market is driving datacenter development as technology growth and energy constraints converge. The aftermath of the Iran war provides opportunity for North America, and particularly Canada, to export more energy to countries that have relied on the Middle East.

• Responding to Cross-Sector Forces [14:11]

Companies can build resilience through measures such as partnerships, supply chain remodeling and employee training. Cross-sector opportunities are emerging from increasing energy demand.

Developments in technology, sustainability, and global competition will reshape financial institutions. In a conversation at RBC Capital Markets’ Global Financial Institutions Conference, Dr. Bettina Orlopp, CEO of Germany’s Commerzbank, explains her organization’s approach to these forces.

What will be the long-term economic impacts of the war in the Middle East? And how will markets look when attention finally returns to the beleaguered software and private credit sectors? At RBC Capital Markets’ Financial Institutions Conference, Head of Equity Derivatives Strategy Amy Wu Silverman and U.S. Equities Macro Thematic Specialist Ben Fisher analyzed the likely effects of volatility on multiple fronts.

As geopolitical tensions in the Middle East raise the prospect of a more prolonged energy shock, how should investors think about the implications for inflation, consumer behavior, and markets? Global Head of Commodity Strategy Helima Croft, Chief Economist Frances Donald, and Head of U.S. Equity Strategy Lori Calvasina discuss what a disruption in oil supply could mean for the macro outlook — and why the longer‑term picture may be more resilient than headlines suggest.

As electricity demand surges, geopolitical risks increase, and the physical impacts of climate change escalate, how are investors responding? In this episode, RBC Capital Markets' Global Head of Sustainable Finance Sarah Thompson reflects on the outlook for the market in the light of new global realities, in discussion with Moses Choi, Head of U.S. Sustainable Finance, and Stefano Vitali, Head of Europe and Asia Pacific Sustainable Finance.

The current AI cycle, fueled by an unprecedented compute upgrade, is driving a fundamental economic shift. In this panel discussion at this year’s TIMT Conference, Matthew Hedberg, Head of Global TIMT Research, joins John Borthwick, Founder and CEO, Betaworks; Dave Golob, Chief Investment Officer, Francisco Partners; and Greg Turorto, Portfolio Manager, Goldman Sachs, to discuss how investors can navigate future opportunities while avoiding potential investment pitfalls.

Once synonymous with passive, index-based investing, ETFs have become a vehicle for active managers seeking to deliver differentiated returns. Today, active ETFs now outnumber passive funds among US-listed exchange-traded products for the first time.

Scott Davis, Head of ETFs at Capital Group, joins us on this episode of ETF Innovators to discuss how the firm integrates over 90 years of investment expertise into modern ETF structures.