Vladimir Putin secured an easy victory, and a second consecutive six-year term, in yesterday’s first round of presidential elections. With 99% of the votes counted, he has received 77% of votes, which will extend his 18-year in power until 2024. Putin’s re-election means stability in the corporate sector, a favourable outcome for bond investors.
“Even though Xi was already due to remain until 2023, the western media became very excited about China’s ‘imperial ambitions’ and may well have been the trigger for the increased talk on tariffs. The reality is however that the US policy of containing China has shifted gear,” says Mark Tinker, Head of AXA IM Framlington Equities Asia. The point of his following comments is to highlight the different attitudes to China currently pertaining in each continent.
Benjamin Cole | The last filmy slips of fabric have been stripped away, and macroeconomists must now view the once-romanced US Congress in flagrante delicto with a real paramour: Mr. Big Bucks Deficits. From here, a premise of Federal Reserve monetary policy must be that it takes place alongside $1 trillion annual deficits.
Last October the Chinese investment fund Orient Hontai agreed to buy a majority stake in Spanish sports rights group Mediapro for $1 billion in order to change the Asian country into a global soccer powerhouse. Today the deal has been materialised and Orient Hontai officially become new owner of the Spanish soccer championship usually known as la Liga, Europe’s third-richest league.
Caixin | President Xi Jinping is hosting U.S. President Donald Trump in China for the first time since Wednesday. Trump’s visit is part of his whirlwind Asia tour that saw him spend three days in South Korea.Trump will be accompanied by a business delegation that includes the leaders of 28 U.S. companies.
After several months of buildup, the Trump’s tax reform was finally unveiled on September 27. To better understand the potential implications for investors, Curt Overway, CFA from Natixis Global AM offers insight on what the tax reform proposal means for investors’ portfolios. A few observations can be made.
Nick Ottens via Atlantic Sentinel | Germans are more centrist and optimistic than most Europeans. The French and the Spanish have yet to feel the economic recovery and are more inclined to vote for parties on the far left and the far right. The Italians are even more pessimistic, yet they remain wary of extremes.
Latin American equities have been on a wild ride in recent years. After heavily underperforming global equity markets until 2015, their fortunes have turned. As pointed by Deutsche Bank AM, the MSCI Latin America Index is up by more than 20% in 2017. A closer look at correlations reveal Latin American equities correlate with metals and mining, not with politics.
Telefonica has informed the Stock Market Regulator (CNMV) that it has reached an agreement with the Colombian government to hike capital for a total of €1.840 billion at its affiliate operating in the country, which is one of the main ones in the group. The reason for the capital increase is the debt the parent company has with the company which manages the pension funds.