What then can we expect for 2017? Well, the biggest macro event for Asia is what Donald Trump does when he takes over at the Oval office Looking back, 2016 certainly has been a roller coaster year for financial markets. Perhaps one could blame the market volatility we experienced this… Read More »
When we started to discuss the 2017 outlook, it struck us quite early that many of the key supportive arguments for 2016 will also hold true for 2017. These arguments are centered around yield, growth and value, all of which are rare in developed markets, but frequently part of the… Read More »
The election of Donald Trump radically changes the current equilibrium. Tax cuts programmed for 2017 will support private demand. Cuts are expected to total around 6,000 billion dollars over 10 years. This would lead to a 4.1% increase in US household income after tax. However, the reduction is not attributed… Read More »
Year to date, the main Italian index, FTSEMIB, is down more than 20% (Price return, €) and has underperformed the broader European market by c22%. This has been driven by concerns surrounding the high levels of Italian gross non-performing loans (NPLs) in the banking system and the pending Italian Referendum… Read More »
The ‘fallen angels’ phenomenon can offer the opportunity to enhance the returns on a multi-asset portfolio and the potential to improve diversification, according to analysis from Cass Business School. The paper “Fallen Angels: The investment opportunity”, written by Professors Andrew Clare, Stephen Thomas and Dr Nick Motson, and supported by… Read More »
A ‘no’ vote in the constitutional referendum on 4 December could result in Prime Minister Matteo Renzi’s departure On 26 September, Italian Prime Minister Matteo Renzi announced that the referendum on the constitutional reform will take place on 4 December. If successful, the proposed reform would reduce the role of… Read More »
“A Quantitative Easing (QE) programme, as decided by a central bank, is a plan that consists of buying large quantities of assets whatever the price is. As a consequence, prices lose their precious information content that normally enables investors to switch meaningfully between different asset classes”, says Yves Longchamp, Head… Read More »
One of the main differences between free market and communist economies is the role of prices. In free market economies, prices play a central role as they aggregate valuable information over demand and supply in a single figure that guides economic agents – producers and consumers – to make their… Read More »
As generally expected, last week’s European Central Bank (ECB) meeting unfolded without any surprises; nothing new under the sun, so let’s enjoy it while the summer is here and continue to consider Euro corporate bonds. Such a cool, calm attitude suits the need to analyse the consequences of Brexit on… Read More »
Brexit introduces fresh headwinds to growth – headwinds that are reinforced by rising political risks in key EU countries. While inflation should start to rise soon, we still expect additional ECB action and see prospects for some fiscal easing. Materially lowering our European GDP growth forecasts: In the wake of… Read More »