Protectionism threatens to unravel the model of ‘new globalisation’ that sources cheap labour from around the world, enabling companies to increase profit margins through efficiency savings. Globalisation is often blamed for the world economy’s ills. Many commentators attribute rising populism in the West to years of wage stagnation attributed to… Read More »
Recent upbeat comments from European Central Bank President Mario Draghi prompted an immediate reaction from global financial markets, which appeared to sense early signs of a change in approach from monetary policymakers. Financial markets across Europe and beyond seem to have taken upbeat comments from European Central Bank (ECB) President… Read More »
Pablo Goldberg, Sergio Trigo Paz -
Monetary policy divergence is back, as the US Fed announced quantitative tightening while other major central banks remain in QE mode. This has important implications for duration and EM currencies. With market pricing challenging the Fed’s stance, such a disconnect could bring more volatility in the second half of the… Read More »
Latest economic data confirm that Eurozone activity continues along a solid rhythm, with a good start into the second quarter, while inflation remains weak. Looking at economic data, industrial production rose comfortably in April, leaving the overall level 2.3% above first quarter growth, continuing along an upward trend. Looking at… Read More »
Valentijn van Nieuwenhuijzen -
The search for income generating asset classes has to a certain extent come back on investors’ minds. This has translated in a recovery in government bond markets and the relative performance of income generating equity sectors like telecom, utilities and real estate. It is also is visible in the renewed… Read More »
While we don’t even use it yet, it has doubled in value since the beginning of the year and its use is gradually gaining ground in the economy: the digital currency Bitcoin broke above US$2,000 last month even though when it was first introduced at the end of 2008 it… Read More »
Didier Saint-Georges -
The rise of populism and its impact on markets constitute a typical case of ‘reflexivity’, whereby cause and effects get intertwined in a complex circular relationship. One can trace the source of this interaction back to the early 2000s, when the US policy makers decided to treat by super-accommodative policies… Read More »
Betting on low volatility has been a winning strategy lately. But how long can central banks still tame markets? We avoid playing with fire and ride safely. “Making predictions is particularly difficult this year, as the future is more uncertain than ever.” Over the past couple of years, this phrase… Read More »
Although frontier markets are a small subset of the emerging market universe, we think they represent an important constituency that offer some compelling potential opportunities. There are a number of urban myths about frontier markets (the less-developed subset of the emerging-market universe). We think these myths may have caused investors… Read More »
Nicolas Roth -
The integration of blockchain technology within specific segments of a bank’s business is likely to bring in a wave of efficiency while reducing the cost base Within the world of investing in 2017, the buzz words hitting the wires constantly are machine learning, robo advisory and artificial intelligence among others.… Read More »
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