MSCI Emerging Markets Index Fully Developed At Its Happy 30th Anniversary
After thirty years, with the MSCI emerging markets at a historical high, having outperformed developed markets for the past two years. What should we expect going forward ?
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German Equities – What Else?
On January 23rd, Germany’s Dax jumped to a new record high. But after no more than eight trading days, the German benchmark index lost over 7%, wiping out all year-to-date gains. Deutsche Bank AM’s reaction is optimistic instead: Its preference of German equities is the healthy macroeconomic environment and state of German corporations. On a 2-year horizon, the Dax could even climb to 15,000 points.
Are We Going To Be Talking About Stagflation Once Again?
After US inflation beat estimates in January, it’s likely the market will end up putting even more emphasis on the possibility of seeing inflation rates higher-than-expected months ago, or even stagflation. And, unfortunately, this will continue to spark potential over-reactions which would give way to strong, quick movements.
SiemensGamesa Strategic Plan: On The Defensive More Than On The Attack
Yesterday, SiemensGamesa presented its strategic plan to 2020, baptised L3AD2020. The new strategy is centred on cost savings of 2 billion euros which will allow it recover margins (EBIT/sales) to around the 8/10% level.
Telefonica’s O2 Share Sale Finally Unblocked
The UK Court of Appeal has dismissed a demand from Three which blocked the new frequencies auction (planned for Autumn 2017), in turn blocking Telefonica’s share sale of O2. This is positive news for Telefónica as it means that it eliminates a practical hurdle for the company to be able to carry out the O2 share sale in the UK, raising funds to cut its debt.
India Enters the Era of Sanatan Socialism
Atul Singh and Manu Sharma | The Indian government’s latest budget courts the poor with an indigenous brand of socialism that relies on financial transfers and private provision of services in an election year.
Welcome Mr Powell: Monetary Normalisation Is Not Going To Be A Bed Of Roses
The welcome the financial markets have given the new Fed chairman (Jerome Powell) shows that the end of the monetary normalisation process in the US is not going to be a bed of roses, despite the fact his predecessor (Yellen) left with a good part of the dirty work already well underway.
Banco Sabadell Plans To Raise Its Presence In Mexico By 50%, Gain Efficiency In The UK
Banco Sabadell wants to grow in the UK and in Mexico, countries where it is already present, without making acquisitions. It aims to double its returns in those two markets.
Efforts to Cut Off China From World Bank Lending Are Misguided
Scott Morris via Caixin | Overshadowed by China’s role as the world’s creditor is the uncomfortable reality that it also continues to be one of the largest recipients of multilateral assistance through major development agencies like the World Bank and Asian Development Bank. This juxtaposition of China as lender and borrower has marked a long simmering tension with the West.
Huge US Federal Budget Deficits In Perpetuity: What Should The Fed Do?
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.