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Jerome Powell

Why This Is No Taper Tantrum 2 For EM Bonds

James Barrineau (Schroders) | Emerging market bonds and currencies sustained serious damage in the 2013 “Taper Tantrum”, but are much better placed this time around. Some financial markets have reacted as if Federal Reserve (Fed) Chair Jay Powell rang the bell for tapering of easy financial conditions at the 16 June policy meeting. Investors have naturally dusted off the playbook from the last episode, the notorious “Taper Tantrum” that began…


Closing the gap between water supply and demand

Water: A Source Of Life As Well As A Refreshing Addition To Any Portfolio

Matthias Fawer & Thomas Trsan ( Vontobel AM) | If oil greases the wheels of the global economy, water helps to make its turbines spin. The amount of water used in industrial processes may be less publicized than the “blue gold’s” significance for planting crops, but it is no less significant. Earlier this year TSMC, one of the world’s largest manufacturers of electronic chips based in drought-hit Taiwan, had to resort to water imports to maintain production. Whilst crude oil and its derivatives are part of a well-established industry that may be past its peak, water and its varieties – green, blue, grey, or any other color – may still have surprises in store for us.


Climate changes risks

The Uneven Effects Of Climate Change On The Global Economy

Irene Lauro (Schroders) | While climate change is affecting all regions around the world, global warming and precipitation rates will not be distributed evenly around the globe. There will be winners and losers. The effects of climate change – and what it could cost investors – will vary significantly around the world.


climatecrisis

Next Big Financial Crisis Could Be Triggered By Climate Change – Central Banks Can Prevent It

Garth Heutel, Givi Melkadze & Stefano Carattini via The Conversation | In 2008, as big banks began failing across Wall Street and the housing and stock markets crashed, the nation saw how crucial financial regulation is for economic stability – and how quickly the consequences can cascade through the economy when regulators are asleep at the wheel. Today, there’s another looming economic risk: climate change. Once again, how much it harms economies will depend a lot on how financial regulators and central banks react.


Repsol

Repsol Reports Net Income Of €1.235 Billion For First Half 2021

In this period, the company has advanced in the decarbonisation objectives laid out in its 2021–2025 Strategic Plan. The plan and related actions have enabled the company to benefit from the incipient recovery in demand, still below 2019 levels, and the improvements in raw material prices. As a result, Repsol was obtain positive cash flow in all business segments and a net debt reduction of 6%. Adjusted net income, specifically…


Congreso

Interim Workers Deserve More Respect

Fernando González Urbaneja | The government narrowly (by one vote and in a second vote) passed the decree law (which will be processed as a bill subject to amendments) opening the door for up to 800,000 temporary public workers to consolidate their employment with stable contracts. Governments (state, regional and local) have been using and abusing interim workers for decades. To such an extent that the European Commission and the…


spanish PM pedro sanchez

Sánchez Against The Court Of Auditors

Fernando González Urbaneja | The description as “anachronistic” of the fact that the rapporteur of the Court of Auditors – in the case of the possible embezzlement of pro-independence leaders – was a minister in an Aznar government deserves some reflection. It begs the question of how the president’s mentality works, his concept of the constitutional system and the balance of powers. Added to this are the considerations of Catalan…


spac ipo

Spacs: Why Investors Fell In Love With These Stock Market Vehicles – And How The Bubble Burst

Daniele D’Alvia via The Conversation | Spacs have been around since the 1990s, but they exploded in popularity in 2020 and early 2021. This is partly because there has been more and more capital looking to make money, since bonds have been paying unattractively low interest rates, and far fewer companies are listing than in previous decades. Regulations have made traditional flotations slower and more expensive. Flotations are also traditionally underpriced on the day of listing to drum up investor interest. But a crucial advantage of Spac deals is that they are privately negotiated and avoid the risk of money being “left on the table”.


Spanish renewables

ESG Funds And Management Fees.

Ricardo Jimenez (Sigma Rocket) | In the last 18 months, sustainability has definitely made its way to the top of investors’ agendas. Gone is the old Corporate Social Responsibility driven by companies, a kind of philanthropic activity towards society, corporate marketing with little interest for fund managers. This change in mentality, supported by the circumstances arising from Covid 19, is being driven directly by investors, both institutional and retail. There…


Ibiza Spain

Brits Can Now Go To Ibiza

Yesterday afternoon the UK changed its criteria and opened its hand by moving the Balearics, Malta and Madeira from the amber to the green list. This means that any British tourist will be able to travel to these three destinations from 30 June without quarantine on their return. They will not have to bring a PCR on entry to Spain, provided they have not travelled to another country in the…