How stock market’s ‘utter carnage’ may affect us all – Angus Robertson

Our saving and pensions depend on the success of the financial sector, writes Angus Robertson.

A person views the FTSE 100 on their mobile phone (Picture: Luciana Guerra/PA Wire)

Spare a thought for people working in the financial sector. After yesterday’s massive turbulence, today will be bumpy too and it’s only Tuesday. In the worst day since the 2008 financial crisis, billions of pounds and other currencies have been wiped from markets in the UK and around the world.

Within minutes of opening, the UK FTSE 100 index dropped eight per cent in what was described by analysts as “utter carnage”, with the day being dubbed Black Monday even before lunchtime.

The drop follows massive uncertainty on the oil market after a row between Russia and Saudi Arabia about production levels. Oil prices crashed 20 per cent and the wider market impact has been felt in all financial centres, including Edinburgh.

Scotland’s capital is the largest financial services centre in the UK after London and is a major European centre for asset management, asset servicing as well as a key life assurance market, centre for banking and fintech innovation. More than 33,000 people work in Edinburgh’s financial services and insurance sector, which is one in ten jobs. Many will be feeling the pressure because of the global economic situation.

It’s not often that sympathy is expressed for people in the well-remunerated financial sector, but directly or indirectly, our savings and pensions depend on their success.

More than £600 billion is currently held in defined contribution pensions, so we have to hope that stability returns to the markets.