Expertise Investment View

03 Décembre 2018

Even though we still have one month to go, we can already conclude that 2018 has not been an easy year for financial markets. Equity markets have been struggling while credit spreads have widened.

Expertise Investment View

19 Novembre 2018

As a rule of thumb, we think about responsible investing as a long-term approach. Despite our belief that time will work to our advantage as a responsible investor, we need to be alert for sudden short-term market movements. After all, unexpected positive or negative events might trigger us to take action now, even with the long term in mind.

Expertise Investment View

05 Novembre 2018

Markets are on the move again, and in a pretty impressive way. A combination of rising risk aversion, lingering trade worries and disappointing European data led to extended negative market sentiment last week, despite another strong US earnings season.

Expertise Investment View

22 Octobre 2018

It was a dramatic week in financial markets. Risky assets were sold off across the board and equity markets printed their strongest fall since the volatility shock in February. Interestingly, US equities rather than EM assets took centre stage in this correction as they dropped around 6% last week.

Expertise Investment View

08 Octobre 2018

Why do we believe in the benefits of integrating ESG information into the investment process? Last year, Professor Robert Eccles of Oxford University’s Saïd Business School, and Mirtha Kastrapeli, Global Head of the Center for Applied Research at State Street Corporation, looked into how investors are integrating environmental, social and governance (ESG) factors into their investment process(1).

Expertise Investment View

24 Septembre 2018

Even though more than 10 years have passed since inflation was hot, it has been a hotly debated topic since the Lehman crisis. Immediately after global credit markets went into cardiac arrest, central banks pushed their policy rates down towards zero and gave financial institutions unlimited access to longer-term central bank funding.

Expertise Investment View

29 Août 2018

With the summer coming to an end, some reflections on the state of global markets seem appropriate. It has been a year with more volatility than direction, and investors have shown less willingness than in recent years to look through the noise of politics. Two key factors that make this year different might explain this.

Expertise Investment View

16 Juillet 2018

In most news flows, economic data continue to take a back seat to events unfolding in the political sphere. As we learned in so many of the political crises of recent years – the Italian government formation, Brexit, to name a few – this does not mean that politics are actually more important for markets than trends in the real economy. 

Expertise Investment View

02 Juillet 2018

Fears of trade wars rose further in the past week. The US government gave additional hints that in addition to imposing import tariffs, it would toughen its stance on Chinese investment in the US to protect intellectual property. Scrutiny on trading partners was also increased to ensure compliance with the sanctions on oil imports from Iran.

Expertise Investment View

18 Juin 2018

Since the start of the year the ECB has faced increased nominal growth uncertainty. For a central bank that does not face the complications of an incomplete monetary union, this would be a reason to adopt a wait-and-see approach. This is all the more so because the ECB is standing with its back close to the wall.

Expertise Investment View

04 Juin 2018

Italy is back in the headlines and dominating market direction again. It is not the first time, but it has been a while since Italian politics were able to feed broader worries over sustainability of the Eurozone project. And the latter is the core reason why markets are responding more forcefully than they have done in years. Despite all Italy’s problems in terms of political instability, lack of structural reform and lingering debt burdens, it is really only when developments in Italy start to increase the probability of a Eurozone break-up that markets start to worry seriously.

Expertise Investment View

07 Mai 2018

So far 2018 has taken a completely different shape than last year, which was full of positive surprises on data, earnings, politics and US fiscal policy. Now, things have changed and investors need time to adapt to this new, less supportive and more uncertain environment and are less willing to take large directional bets.

Expertise Investment View

23 Avril 2018

It has been a volatile ride in markets. We have mainly been jumping from weeks of fears of escalation of trade conflicts and geopolitical tension to periods in which more pragmatism is expressed. Many notice that the underlying economic conditions are remarkably good. Growth is high and broad-based and unemployment rates keep trending lower.

Expertise Investment View

09 Avril 2018

Markets remain fragile. So far it is more the return of volatility than the generation of returns that describes market behaviour. Noisy politics, rising fears over trade conflicts and negative news flow over the technology sector are fighting for the headlines and are probably contributing to more market instability.

Expertise Investment View

26 Mars 2018

It was supposed to be the week of the new Fed chairman Jerome Powell. In his first post-FOMC meeting press conference this Wednesday night (19:30 CET) he will comment on the reasons to raise interest rates further towards the 1.5%-1.75% range.

Expertise Investment View

12 Mars 2018

A lot of things have been improving in recent years and as a result the global economy is now in its best state in more than a decade. And markets have noticed, and adapted. Asset prices currently reflect a much healthier outlook for global growth and corporate profitability than a few years ago. Until the February turbulence, markets also kept on indicating that things continued to improve. As a result, risky assets and especially equities continued to rise.

Expertise Investment View

26 Février 2018

The emotions of markets have created an interesting spectacle in recent weeks. The impressive moves in equity space and record jumps in volatility were yet another expression of the fact that markets will always have mysterious features that are very hard to fully understand. Such episodes of misbehaviour have always been around and help us all to stay humble.

Expertise Investment View

05 Février 2018

Inflation may well be still missing in action, but the last couple of days our other long-term missing companion, volatility returned to the markets. Over the past five trading days global equities were down 1.7%, real estate 2.7% and the ten-year German bond yields rose another 12 basis points to reach the highest level since end-2015. Also the USD witnessed some important intra-day moves last week on comments from politicians and policy makers.

Expertise Investment View

22 Janvier 2018

Optimism is on the rise. And it is not hard to see why. The global economy hasn’t been better in more than a decade with growth more balanced and synchronized than seen in a long time. And inflation remains well-behaved, while policy and political risks seem lower than in recent years.

Pages