Since Donald Trump’s victory in the US elections, the markets have seen declines in fixed income securities – bonds have lost 1.5 billion dollars – and rises in equities – with the value of global equities rising by 1.7 billion dollars. The emerging markets have retreated, while there has been an improved performance from cyclical sectors, particularly the financial sector. So we need to ask what will be the best bets for investors once Trump’s presidency begins.
Donald Trump is clearly interfering with corporate liberty, directly criticising on Twitter every investment the big companies make. But the question is that he functions by and for the cameras and hasn’t taken in what the rule of law is. So you can’t ask him to have respect for regulations and institutions. He will be sworn in today.
Fair Observer | Since before he first took over the presidential office in 2009, the young senator from Chicago Barack Obama carried an air of hope and promise. “Yes we can!” became a winning slogan that sought to propel America forward into a brighter future.
The January update of the IMF’s “World Economic Outlook”, published in October, confirms that Spain will recover this year all the GDP growth lost during the economic crisis, exceeding in 2017 for the first time the volume of growth in 2008.
Last week China’s trade data for December disappointed on the export side, with exports declining 6.1% y/y in USD terms. Imports were around expectations with a 3.1% rise.
A review on fixed income market cannot omit president-elect Trump’s first press conference of the year, although it contained little substance for investors trying to understand what the economic priorities of the new Administration will be.
J.L. M. Campuzano (Spanish Banking Association) | The World Bank is predicting an acceleration in global growth rate for this year of up to 2.7%, after the lowest level of growth in the wake of the Crisis estimated last year. In general, the latest global economic data is fuelling optimism.
Inflation is back. The first stage has been the rise in oil prices from $30 to $50 per barrel, which is already being passed on to the consumer economies. Too much inflation is a bad thing: it creates rising expectations and people try to anticipate them. But too little is even worse. The 2008 crisis caused a very costly deflation. .
María Fernanda Tapia Cortés | Mexico starts 2017 with two trending topics: the announcement of new gasoline prices and protests inspired by the adjustment period in the form of a 20% price hike. While Mexicans are filled with outrage, moguls anticipate the potential earnings that this represents. The question is: Who will the energy reform benefit?
Indonesia has announced that it is going to ease up its export ban on nickel ore. It appears it is going to allow nickel miners to export as long as they dedicate at least 30 percent of their smelter capacity to processing low-grade ore, defined as below 1.7 percent nickel. For Spanish Acerinox, as well as the rest of the stainless steel sector, this news is very negative as it will put downwards pressure on nickel prices.