World economy

USA stock exchange

IPO Activity Record: The First Time That Over USD 200 Billion Was Raised During The First Half Of Any Year

Baker McKenzie | H1 2021 saw a surge in IPO activity, driven by high liquidity, investor enthusiasm and the rise of SPACs. Capital raising during H1 2021 reached historic highs at over USD 290 billion, the first time that over USD 200 billion was raised during the first half of any year. This reflects a 220% year-on-year increase in capital raising. Deal volume also grew at a strong 143% year-on-year…


ChinaSolarPanels

China’s Dominance In The Solar Industry: A Danger For Massive ESG Investment

Portocolom AV | China currently dominates the solar industry, with Chinese companies controlling around 80% of the global solar supply chain, from raw material refining to panel production and assembly. In 2020, 45% of the global supply of poly silicon, the key refined material that comprises 95% of solar panels, came from China’s Xinjiang Uyghur Autonomous Region. The governments of the US, UK, Canada and the Netherlands have declared that China has committed genocide and crimes against humanity in its treatment of Uighurs and other Muslim-majority peoples in Xinjiang.


Gilead vaccine

Healthcare – Growth At An Attractive Price

Mathieu Racheter, Strategy Research, Julius Baer | Global healthcare remains our most preferred defensive sector due to attractive valuations in combination with solid growth perspectives. We see a number of structural tailwinds including demographics, big data, and increased demand in emerging markets, all of which should continue to drive above-average sales and earnings growth going forward. Healthcare remains our most preferred defensive sector due to attractive growth perspectives and undemanding…


Wall Street

What Do Rising Bond Yields Mean For The US Stock Market?

Sean Markowitcz (Schroders) |  Since the 1970s, there have been approximately 11 rising yield cycles. Yet, contrary to popular belief, these periods were overwhelmingly positive for the stock market. For example, US equities delivered a positive total return in nine of these episodes, with an annualised average performance of 13.4%.


em currency performance since taper tantrum

The EM Currency Rally Still Has Legs

James Barrineau (Schroders) | Since March of last year, emerging market (EM) currencies have risen by a gaudy 12.8% versus the US dollar. Near-term there have been some sizable moves, such as a 10% gain for Brazil’s real versus the US dollar since the end of March this year. That naturally leads to the suggestion that EM currencies may be getting expensive, but such a view does not take into…


covid19 world vaccine

The World Needs a People’s Vaccine

Nicolas J.S. Davies | Around the world, we are witnessing what can happen when people rise up and act collectively for the common good. That is how we will solve the serious problems we face, from the COVID-19 pandemic to the climate crisis to the terminal danger of nuclear war. Humanity’s survival into the 22nd century and all our hopes for a bright future depend on building new political and economic systems that will simply and genuinely “do what is best for all of us.”


Bukele Bitcoin

El Salvador To Be The First Country In The World To Adopt Bitcoin As Legal Tender

Fernando Alberca | For the Salvadorian president, Nayib Bukele, the impact of this measure will be very positive: “In the short term, this will generate jobs and help bring financial inclusion to thousands of people outside the formal economy. And in the medium and long term, we hope this small decision can help us push humanity, at least a little bit, in the right direction.”Although the US dollar is the official currency in El Salvador, remittances of dollars from Salvadorian emigrants have to pay high commissions to banks and intermediary exchange houses to transfer them to their home country.


A shop in Germany

Have We Entered ‘The Great Inflation 2.0’?

Consumer spending in the United States increased to pre-pandemic levels of around $13.4 trillion in the first quarter of 2021 from $13.0 trillion in the fourth quarter of 2020. If the pandemic can be characterised as the economic engine being parked rather than broken, pent up demand could quickly cause consumer spending to overshoot the trend from recent years.


net zero emissions

The Reality Problem Of Net-Zero Ambitions

Today is Environment Day and it is time to take stock of how the private sector is contributing to reducing the carbon footprint. Greenhouse gas emissions play an important role in global warming and, although business has long been trying to reduce them through energy efficiency programmes and similar initiatives, the urgency of the climate crisis is raising the bar significantly. In this article Roland Rott, director of La Française Sustainable Investment Research, analyses the real problem in achieving net zero carbon claims.


dollar rally

The Dollar: From 71% To 59% Of Central Bank Reserves In 20 Years

Luis Alcaide | The world is gradually moving towards a multiple reserve system. In its latest World Economic Outlook, the IMF notes that when the euro made its appearance, the dollar accounted for 71% of foreign exchange reserves. In the last quarter of 2020, dollar reserves held by central banks had fallen to 59%, the lowest share in the last 25 years. The complaints in 1960 from the then French…