City grandee Michael Spencer: President Trump bump was ‘short-lived’

The bump from Trump that set financial markets alight before Christmas could be short-lived, City grandee Michael Spencer indicated.

Trading volumes in London and New York surged after the US election, as interest rate dealing soared and investors bet the next president would be good for business.

Spencer’s renamed digital broking business, NEX, enjoyed the bump as much as any firm.

Spencer warned normal service has resumed.

He said: “It is still too early to assume with any confidence that the previous and prolonged period of subdued market conditions has come to a permanent end; volumes in January were generally more muted.”

He added: “I don’t spend my time forecasting trading volumes, it seems to be an exercise in frustration. But who knows, he may even tweet something later today that gets things shaking and moving again.”

In the third quarter, revenue was up 11% overall. Spencer, who split NEX from Icap in December, selling the voice broker to Tullett Prebon, is chasing new clients in the hedge-fund world.

He plans to expand the product range before long. Analysts at Numis think NEX should make profit this year of £116 million.