Fran Wang via Caixin | China’s drive to boost the housing rental market is spurring the revival of plans to let companies offer real estate investment trusts (REITs) to the public.
J.L.M. Campuzano (Spanish Banking Association) | The increase in the size of the central banks’ balance sheet has without doubt been one of the untraditional measures of the financial crisis. But the president of the ECB has anticipated that probably at its next meeting in October a scheme will be worked out to progressively reduce the asset buying programme.
Benjamin Cole | With the announced mid-October resignation of U.S. Federal Reserve Vice Chairman Stanley Fischer, Donald Trump has a chance to do what Presidents Obama and Bush never did: appoint growth-oriented members to control nation’s central bank.
The 2017 hurricane season will cost a bundle but, according to Carax Alphavalue “when looking at a 5-year chart of the European Reinsurers’ performance, it is clear that the profit-taking temptation was a strong one.” Even after losing 12% since their recent (pre-storms) peak, the sector has outperformed the Stoxx600 by about a third.
As long as there is no perfect equivalence between supply and demand, inflation will form part of our system, according to Robeco.
Hurricane Irma is likely to be the most damaging not only in terms of US population in risk but also of economic impact. Catastrophe bonds will be very useful as they usually “mitigate the risk of natural disasters by taking on losses that otherwise would be borne by primary insurers,” as stated by Julius Baer’s analysts.
Any sharp movement in exchange rates usually has an impact, in the short-term, on global firms’ stock prices. This is true for those included in the major indices of reference, companies which sell, produce and make profits throughout the world.
Stan Fisher the Fed’s vice president has decided to resign at mid-October for personal reasons. This will dramatically change the internal equilibrium of the Fed’s board.
Unfortunately, the stakes are being upped in this strange and perverse game between Trump and Pyongyang, with increasing possibilities of China becoming involved. A war with North Korea cannot be ruled out.
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.