At the beginning of the pandemic, most businesses had 3 options: continue business as everything is normal, but with the risk of workplace contamination, shut down the business, or transition to working from home. Nevertheless, there is a high discrepancy between high-income countries, which have more access to digital channels, in contrast with countries such as Bangladesh and Myanmar, where more than 80% people do not have the means to work from home.

Notional normality refers to the dynamics of working practices, which are supported by shared individual and organizational beliefs about the world, that can be adjusted through accumulating problems until those principles are challenged by a major crisis or disastrous event. Hence, we can argue that the COVID-19 pandemic represents an event which has shaken the foundations of work practices. The guiding values and assumptions of most organisations have shifted from exploration and creativity towards fostering safety and resilience.

Telework is prevalent in the following domains: IT, business, financial, and management. People with already developed digital skills were arguably in a better position than those who were not accustomed already with working preponderantly on a computer. Continuous remote working might impact the effectiveness of training new employees, as their ability to observe, ask and learn is severely reduced by the limited home scenery. Moreover, necessary tools, programmes or equipment might not be available for all employees who are working from home, which could impact their overall working efficiency.

Some studies highlight the main impacts of lockdown, such as increasing fatigue, musculoskeletal conditions, poor work-life balance, reduced exercising and increased alcohol consumption. An over-looked impact, nonetheless a significant one, is that the line between private life and work has become blurry. For one, the psychological impact of not having definite media of work and rest results in a sense of not belonging, anxiety and fatigue. It is estimated that more than 50% of the employed people are struggling with deteriorating mental health as a result of the pandemic.

The most common trends were reduced motivation, loss of purpose and vitality, anxiety stemming from the ongoing isolation. The loss of social connectedness and loneliness had a significant toll on people’s wellbeing: more than half of adults (60%) and over two-thirds of young people (68%) state that their mental health was negatively affected during the lockdowns. As a result of these trends, the risk of substance abuse and addiction has increased.

With the shift towards long-distance working, several recurrent issues were faced by most workplaces. First, some individuals were not familiar with new technologies and digital platforms. Moreover, there is a major surge in workload, which resulted in high levels of stress. Also, some workers may not have suitable conditions to work from home, which might impact their productivity. On top of these drawbacks, uncertainty about employment is a frequent concern.

Needless to say, teleworking has plenty of advantages as well. First of all, people do not have to spend time on commuting: there are no delays associated with bad weather or interminable traffic. Their programme is more flexible and some of them can distribute their working hours throughout the day. Moreover, real estate and relocation costs are reduced as the companies can grow without worrying about moving to bigger offices.
One thing is clear: remote working won’t end when the pandemic is over, this change is likely to remain within our society for a long time.

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Derivatives represent securities whose value relies upon an underlying asset or a group of assets, which represent the derivative’s benchmark. In essence, a derivate is a contract between two parties which establishes the payment conditions for a future established date, which is called maturity. Derivatives inherit their values from the value fluctuations of its underlying asset.

The gross market value of derivatives was estimated at $11.6 trillion at the end of 2019. In June 2020, the market value surged to $15.5 trillion, with around 33 per cent increase. Most of the time, people use them for commodities such as oil or gold, or currencies, usually the US dollar. Furthermore, there are also derivates emerging from stocks and bonds.

Investors use derivates to hedge risk and avoid financial losses. For example, derivatives are commonly used to hedge the interest rate risk Derivatives are utilized as speculation tools for future price trends of an asset, as investors seek protection from the price fluctuations within the market. The main rationale on which buyers enter them is that the price will grow and they seek to reap off the benefits of buying them at the current price. Conversely, the sellers predict that the price will fall and they seek to sell them at the bigger present value.

There are various types of derivates: forwards, futures, options and swaps.

Futures are standardized contracts which enable the contract’s holder to either buy or sell the respective underlying asset at an agreed price on a specific date.

Forwards are quite similar to futures, however, they impose more flexible contracts as the involved parties can modify both the underlying asset, the quantity of the commodity and the maturity of the transaction In order to make future transactions, brokers and traders must be registered with the National Futures Association(NFA) and the Commodity Futures Trading Commission (CFTC).

Options are quite similar to futures, however, there is a key difference: one party does not have to abide by their agreement to buy or sell. Hence, the buyer has the right, not the obligation, to but the asset. It can exercise this right either on the agreed date (usually in the European area) or anytime before the maturity (in the USA). There are two types of options: a call option, which enables the holder the right to buy the asset, versus put option, which the holder to sell the asset

Swaps are exchanges of pre-agreed cash flows associated with two distinct assets of each party. It is the most complicated derivate, as it covers two agreements rather than just one. For investors, a swap represents a path for accessing new markets which are otherwise restricted by disadvantageous exchange rates.

Another benefit of derivatives is the possibility to avoid taxes because they can provide the investor with a continuous income source, on which the individual may not be obliged to pay the capital gains tax.

However, derivatives have several drawbacks which should be taken into account. First, they are sensitive to market variables of supply & demand. Some argue that these investments pose a high risk. Besides, it very difficult to know the real value of the derivative and might contribute to the market volatility, exposing investors to high risk. Warren Buffet describes derivatives as “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”

Experts consider that derivatives, specifically mortgage-backed securities, were a huge destructive factor in the aftermath of the worldwide financial crisis in ‘07 and ’08. Therefore, considering these hindering aspects, derivates are not a suitable option for beginner investors.

Derivatives represent a weapon for both the risk-averse and risk-seekers. Nonetheless, this type of investment requires some experience as it is hard for beginners to successfully manage them.

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In general, financial risk analysis starts with a qualitative analysis, by identifying the various types of risks and their characteristics, in which one might examine the eventual causes of risk occurrence and the criteria influencing the risk dynamics. Furthermore, risk analysis can be accomplished through statistical analysis of the prices at different points in times, quantifying risk a standard deviation for a certain desired outcome.

Some examples of analytical frameworks and tools are SWOT-analysis, method of analogies, event three analysis, critical value method, etc. When conducting an accurate risk analysis, one needs trustful and accurate information, hence the sources that you choose are essential. Some reliable sources include getting information from the organisation or other enterprises’ staff members; the corporate accounting reports; trustful newspapers and industry-related information from insiders.

An investment’s return is calculated as the percentage of the initial investment, which can either be positive if there is profit or negative if there are financial losses. Risk and return are in a tight relationship: usually higher risks lead to higher returns, whereas lower risks lead to lower returns. Volatility represents a key variable which influences the uncertainty of an investment. It measures the percentage of change in the investment’s price over a specific time frame. People have a tendency to feel more acutely the negative experience of loss in comparison to the join of gain, thus a stock which has infrequent oscillations, both up and down, might appear as an unnecessary risk. Nevertheless, this volatility brings excellent financial opportunities for experienced financial traders: when the price is very low, investors can buy stocks in the preferred companies and then hold on to the investment under the presumption that a long-term wait would reap off profits.

Moreover, volatility is also extremely useful for short-term traders: day-traders examine changes from hour to an hour and even to minute, to seize the price fluctuations to buy when something is low and sell when the stock price increases. Short-term fluctuations are beneficial for swing traders, who choose to examine the stock fluctuations over a period of several days or weeks.

There are many ways in which financial risks can be grouped and categorised. For example, within the industry, a specific kind of risk is posed by the factors which can affect the demands for the specific services or products of that given industry. Furthermore, there is also market risk, which is impacted by the outcome of political events. There are also national risks, all of which is a result of monetary policies, taxation, interest rates and central bank policies. Another form of specific risks is company risk – this is associated with public scandals, change in corporate management all affect the investment. Moreover, the shift in company policies, worker strikes and serious accusations can play a major role too.

One of the ways through which investors could diminish the chance of losing money is the diversification of their portfolio, which at the same times limits potential superior returns. Investing in a single sector which has a significant growth compared to other sectors might bring superior returns rather than managing multiple investments. Nevertheless, should that sector decrease, one might experience lower losses in a diversified portfolio. This strategy works best in the areas of company-specific risks and industry-specific risks.

Out of the presented risks, market risks represent the greatest threat for investors, as they are usually out of their control and they cannot be diminished through diversification of a portfolio. Some examples of market risks include recessions, political disruptions, changes in interest rates, natural disasters and terrorism. These significant events usually impact the market in all areas, at the same time. One major example of such systematic market risk is the 2007-2008 financial crisis, which caused great economic disruptions.

As exposed in this article, investment poses a variety of risks, which influence its volatility and financial return. Nonetheless, there are plenty of resources and analytical tools which can help one navigate these challenges in the world of investing!

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Increasing environmental concerns, more stringent regulation on CO2 emissions, governmental subsidies and substantial investments of car manufacturers represent the major elements which have influenced the rise of electric cars.

The overall decline in sales of the auto industry during COVID-19 is clearly associated with the measures and lockdowns which limited people’s movement. Despite this negative evolution, the sales of electric vehicles reached all-time highs in 2020. The pandemic has induced fear of public transport due to the possibility of disease transmission. Hence, people were inclined to look into alternatives for public transport, one which of them being the choice of electrical vehicles. The range of electric cars widened these past years: the increased variety fits different needs of distinct population sectors in terms of size, price, style, range, charging et cetera. In 2019, the electric vehicle market was estimated at $162 billion, and it is projected to reach $802 billion by 2027.

In 2021, several companies will launch their very first electric vehicles. In January, Volvo will launch the XC40 Recharge, which will pave a new path for a whole range of adapted electric cars, rather than new designs which are planned around batteries and electric motors. Mazda is set to sell its first electric cars in February which will start at a competitive price point of 25,545£. Moreover, companies outside the auto industry have shown interest in starting to invest and produce in the field. For example, some indicate that Apple could work with Hyundai to produce its first prototype.

Furthermore, major reductions of battery prices would enable the automakers to commercialise fully electric cars for a lower price than cars fueled by diesel and gasoline starting with 2022.

Newcomers in the field of electric vehicles are inspired by Tesla’s success and its major increases in its share prices, now being the biggest global carmaker. Only in 2020, Tesla’s shares brought to its’ investors roughly 594% profit. NIO, a strong competitor of Tesla in the industry, had a massive surge in its sales from 3.24$ in January 2020 to a record of 50$ this month.

Some investors are reticent because the cost of manufacturing electric vehicles is higher than constructing other vehicles. Nevertheless, the government encourage the mass production of electric vehicles through providing subsidies: these past few years, China heavily invested in this industry. Europe’s regulations that impose a reduction of CO2 emissions represent a major driving force in the field. Norway became the first country in the world where the sale of electric was bigger than those powered by petrol, diesel and hybrid engines. Among other incentives, smaller road taxes and the elimination of toll roads and public ferries charges have accelerated the shift towards electric-based alternatives.

One of the greatest challenge faced by carmakers is the correct implementation of integrated software in the vehicles. The experience offered by Tesla is unique in the auto industry, being similar to the experience offered by smartphones, as it provides upgrades through the constant software actualisations. Aiming to catch up with Tesla’s vehicles, competing models struggle to provide similar range distances (= how far an electric car can go before being recharged.

Another problematic aspect is the charging infrastructure. Individuals complain that charging stations are scattered unevenly and accessing them is sometimes very difficult. One study revealed that this complaint represents the third biggest factors which restrain people from buying electric vehicles, right after the high price and driving range.

Overall, the future seems bright for the electric auto industry. Elon Musk declared that

“Self-driving cars are the natural extension of active safety and obviously something we should do. I’ve actually made a prediction that within 30 years a majority of new cars made in the United States will be electric. And I don’t mean hybrid, I mean fully electric.”

carmakers are being prodded to move more.

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Intense scrutiny of Big Tech’s practices has resulted in a series of an anti-trust lawsuit which will develop in 2021 and the following years. Some compare the rise of technological conglomerates to the oil monopolies of the 70s and the 80s. For years, tech companies were “untouchable”, with few attempts of the political actors to impose restraints and regulate. However, the last months of 2020 have witnessed an increase of antitrust and regulatory measures against technological giants.

Antitrust regulation of the digital platforms represents one of the few common grounds on which Democrats and Republicans adhere. At the moment, federal actors of the US have filed 3 federal lawsuits against Big Tech. One of the recurrent complaints is represented by the anti-competitive conduct of the search function and ad monopoly. Furthermore, there are accusations that Google and Facebook have tacitly agreed to not compete with each other.

In October 2020, a 400-page report commissioned by the USA’s Antitrust House Judiciary provided a comprehensive analysis of the practices of Amazon, Apple, Facebook, and Google. The main findings and proofs indicated that Big Tech abused their competences and engaged in unethical business practices, thus new layers of regulation must target them. One of the most significant stances presented in the report is that: “Google has monopoly power in the market for search, while Facebook has monopoly power in the social networking market”.

In December 2020, the Federal Trade Commission and a cluster of 40 states, filed a lawsuit and advocating for a breakup Facebook by reversing the acquisitions of Instagram and WhatsApp. So far, the break up of companies was viewed as an extreme measure and last resort, but now it seems that possibility comes closer to reality. Bernie Sanders asserts that “greed knows no bounds, and they’ve used their power to try and control too much of political and economic life all over the world… the only thing that will stop Facebook is to say ‘enough is enough’ and break it up”. At the other side of the spectrum, European regulators were very reluctant in requesting breakups of companies.

European courts have already imposed fines, amounting to 10 billion, in cases which targeted Google’s digital ad dominance, but this did not have a great impact on the technological giants’ practices. From a geopolitical stance, it is difficult for Europe to enact changes in the digital sphere. All of the giant tech companies are from the US, thus some may argue that due to the non-existence of European tech global actors that this approach would be like complaining about “sour grapes”. In the same vein, the European Commission has expressed the intention to enhance digital protectionism and politicize antitrust practices

On 14 December, EU has revealed the most ambitious legislative project so far in the digital arena: the Digital Markets Act. This document clearly establishes the differences between businesses and gatekeepers, by setting obligations for gatekeepers and guidelines on what they can and cannot do. Among other prohibitions, gatekeepers must not give preferential treatment to their products to the detriment of third parties’ products. Moreover, preventing consumers from linking up to businesses outside their platforms will be prohibited.

Even if the antitrust spotlight fell upon Google and Facebook, the circumstances of Apple and Amazon are projected to change in 2021. The Federal Trade Commission is probing antitrust concerns involving Amazon, as concerns are rising about the negative impact on small businesses. It is speculated that Amazon compiles non-public seller data, for example, the number of products ordered and the sellers’ revenues, implementing it further in its own retail algorithms which enables them to decide what products to launch next and the price level for each offer. Hence, third-party sellers are disadvantaged whereas the sales of Amazon products are surging.

Fortnite has filed a lawsuit against Apple, targeting the App Store and its payment procedures, which require a 30% commission. In December 2020, the founder of Cydia, the store platform which preceded the Appstore, filed a suit on the basis that Apple utilized anticompetitive means to destroy Cydia. These lawsuits have directed the attention of the EU and US to Apple’s conduct. Complementing the concerns raised by Fortnite, The House Judiciary Committee report indicated that “Apple’s monopoly power over app distribution on iPhones permits the App Store to generate supra-normal profits”. Moreover, Apple is suspected of breaching EU privacy law, as some speculate that iPhone users are tracked for advertising purposes.

The development of these antitrust and regulatory tendencies will become prominent in 2021, once with the onset of the existing lawsuits.

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