Utilities in Europe have made a sudden stock market comeback since late July, after performing well in May, underpinned by strong Q1 earnings and some speculation about possible further consolidation in the industry. Q2 results have also been solid and fuelled earnings upgrades.
Nick Ottens via Atlantic Sentinel |It is impossible to appeal to progressive middle-class and nativist working-class voters at the same time. Social democrats across Europe are caught in the middle of a culture war. Ahead of next month’s elections, Germany’s Social Democrats have to pick a side.
Jaume Puig (Managing Director GVC Gaesco Gestión) | Recurring terrorist attacks end up making the markets immune to them, so that is one good reason to buy stocks now in August after the tragic events in Barcelona.
US Fed chair Janet Yellen and ECB President Mario Draghi will both be speaking at the Jackson Hole conference later this week. They will be under close scrutiny from investors for any clues on future monetary policy decisions. Analysts believe the Fed should matter more than the ECB at this week’s event.
As Trump played his part in the reshuffle of Saudi Arabia for the succession of Mohammed bin Salman, he could likely play a salient role in the apparent coup in the UAE — this time for the succession of Abu Dhabi’s crown prince Mohammed bin Zayed. The plot could help Trump to have complete control over the Gulf in a way that he wishes for US interests.
Yukon Huang via Caixin |China’s outward direct investment, a relatively recent phenomenon, has drawn considerable attention because of its size and geo-strategic importance. Although early on Beijing encouraged an outward strategy, the sharp decline in China’s foreign reserves beginning in 2015 led the financial authorities to believe these investments had gotten out of hand.
The minutes of the ECB’s July meeting published on Thursday reflected the central bank’s concern about the strength of the euro, but also a degree of caution regarding continued weak inflation data, analysts say.
The minutes of the Fed’s late July meeting released yesterday reflect ongoing concern about muted inflation data, as well as the fact there seems to be some discrepancy amongst FOMC members over when would be the right time to begin the normalisation of the central bank’s balance sheet.
Larry Beck via Fair Observer | The Democratic Party must seize the moment now and deliver a message of change, but change driven by a renewed collective conscience with social justice at its core.
Carax Alphavalue |The European pharmaceutical sector hit record highs almost two years ago, since when it has had an overall disappointing performance. So far this year, there has been no sign of its defensive qualities, although it continues to pay attractive dividends.