Carbon pricing has so far failed to take off. But it could soon become a pillar of the green economy. The transition from a fossil-fuelled economy to one powered by renewables carries the promise of being as transformational as the
The concept of matching asset allocation to an individual’s risk preferences has been around for decades. As the theory developed, the concept of lifecycle investing – varying asset allocation according to an individual’s age – was born. In this article,
The use of software solutions by companies to improve competitiveness, efficiency and productivity, and reduce costs, is picking up pace – just in time, as a shortage of skilled workers continues to bite. Over several decades Japan has built a
It has been more than a year since COVID-19 was declared a global pandemic. The start-stop lockdowns that followed the first wave of the coronavirus outbreak made it particularly tough for many businesses and individuals to adapt.
If the world is going to limit global warming to +1.5°C from pre-industrial times, as set out in the Paris Agreement, global carbon emissions need to hit net zero by 2050. Every company will have a unique pathway as they
Welcome to the first issue of the Investment Traffic Lights “Quarterly Edition.” The Quarterly Editions will focus on our strategic twelve-month forecasts that follow our quarterly strategy meetings, which also means that the “Market overview” section will be shorter than
The world’s largest organisation for the protection of nature – the International Union for the Conservation of Nature (IUCN) – holds its quadrennial gathering this week in Marseille. Rescheduled from 2020 due to the Covid-19 pandemic, the event is the
Special Europe: invest in the recovery In a nutshell As the European economy is recovering from the largest economic shock of modern history, we are revising our growth and inflation assumptions to the upside. Although the path to recovery is
In 2020, the world produced 1 864 million tonnes of steel. This, combined with an energy-intensive production process, means the steel industry is responsible for a great deal of greenhouse gas emissions, more so than for example producing chemicals or
We now know that the world risks a grim future even if the global economy is decarbonised rapidly, according to a landmark report on climate change. The assessment makes clear: inaction is simply not an option for policymakers, companies and
BII Global weekly commentary Europe is in the spotlight this month, with a key European Central Bank (ECB) meeting and a pivotal German election that could have significant medium-term implications for the fiscal stance of Europe’s largest economy. We see
It feels so good to celebrate the recovery from the Covid-19 recession. Economists in both the UK and US are turning out bright and buoyant forecasts for strong economic growth in both 2021 and 2022. Jobs are readily available and
With the United Nations Climate Change Conference (COP26) showing a world committed to doing better, disruptive innovation will be key to tackling climate change.
Government bond yields generally moved higher last week; the spectre of a withdrawal of ultraeasy policy conditions remains front and centre of attention. Indeed, we will hear more on this subject perhaps this week from Europe when the European Central
The resolution was adopted by the General Assembly and agreed upon by the 193 Member States of the United Nations, with goals to transform our world by 2030. All countries and stakeholders, acting in collaborative partnership, will agree to 17
After three straight years of stellar performance, European renewable energy stocks have fallen back to earth in 2021. But the future is still bright for green power as the world’s transition to a low-carbon economy gathers pace. In the short
Monthly Investment Outlook: Global equity markets continued to climb in August while fixed income investors saw headwinds with rising risk-free yields joining volatile …
Market weekly: What will be the consequences of the Covid-19 pandemic for the food and agriculture sector? How is the transition towards more sustainable food production and consumption affected? What we have seen so far is an … Listen to
Foreword We have been running our internship program since 2014, hosting over 50 college students and MBAs for paid internships at our firm. The centerpiece of our internship is a daily seminar-style class taught by the partners at the firm.
Why is this concerning? Well, the clearing mechanism for supply and demand is price. If demand is growing robustly but supply is struggling to keep up (both anecdotes cited in the ISM report), then price is going to adjust to
As we emerge from the worst of the pandemic, the outlook remains challenging to decipher. Regional differences in COVID-19 vaccine availability and uptake rates are creating a two-speed economic recovery globally. Post-pandemic cynics and optimists will find data to support
In hindsight, Jay Powell is probably very happy to have been so elusive at Jackson Hole on the timeline for “tapering” after the disappointing US job numbers for August. It is not the first time this year that payroll data
Global Sustainable Outcomes: There’s only one way to summarise Q2: a world divided. In North America and Europe economic recovery exceeded expectations as successful vaccination programmes supported market reopening. Here in the UK we emerged from a bleak winter of
Weekly investment update: Investors and economists spent the summer waiting for Fed chair Jerome Powell’s Jackson Hole speech in late August and the first part of September commenting on it. The next meeting of US Federal Reserve policymakers is not
Investor relations (IR) teams increasingly field questions for their companies about sustainability topics. According to our most recent edition of Global Trends in Investor Relations, 71.3% of IR teams globally reported in 2019 that ESG/CSR communications with investors are among
There is much talk in the investor community around the three letters “ESG” (environmental, social, governance), but when it comes to corporate sustainability, CSR (corporate social responsibility), is equally as important. While the former provides a …
Nu de consumptieprijzen stijgen, zoeken beleggers steeds vaker producten om zich te beschermen tegen inflatie, zoals inflatiegerelateerde obligaties. Maar ze moeten zich ook bewust zijn van de complexiteit. De schokkende Amerikaanse consumentenprijzen in april maakten duidelijk dat de prijsdruk opnieuw
Real estate is often a building block within the investment portfolios of institutional investors. As with other asset classes, there are times when real estate is over- or undervalued. In this article, we investigate the use of an econometric model
Speculation is extraordinary, but so is potential. Whether investors welcome it—or even realize it— cryptocurrency, or crypto, is having an impact on their portfolios. The immense size of the cryptocurrency ecosystem and its disruptive effects are being felt across capital
Growth in the net-zero digital economy relies on increased production of critical ICT metals and rare earths. How can we green the world and connect it, while limiting the social and environmental impact? There is much talk about the scope
Key takeaways Regulatory and digital disruption have been headwinds to the financial services industry, but tech innovation offers opportunities for both new entrants and incumbents to survive and thrive. The rising wealth of Asian emerging economies, the growth in derivatives
The National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPCC) closed in Beijing on March 11th. This is the most important event on China’s political calendar, as the NPC approves the main policy objectives that will set the tone for the remainder of the year. This year was especially important, as it also …
Flash Update: Q2 2021 proved to be another good quarter for banks, beating market expectations once again. These beats were generally driven by better revenues in capital market divisions, especially equity trading and M&A, whilst loan loss provisions continued to
In Credit AUGUST 2021 As we start a new month, we can reflect on another better week and month for core government bonds. US yields fell by around 25bps in July. The fall was led by declining real yields, which
Fed bereidt de markten voor op afbouw opkoopprogramma ‒ Chinese groeivertraging en corona treffen opkomende economieën ‒ Sterke winstgroei steunt aandelenrally ‒ Winst nemen op vastgoed, obligaties opkomende markten naar neutraal
Sweeping regulatory changes in China have caught markets off guard lately and prompted confusion about Beijing’s intention behind actions that seemingly contradict its longterm strategy of building a high-tech and knowledge-based society. However, beneath what appear to be uncoordinated actions
Hoewel de verspreiding van de nieuwe Delta Covidvariant de wereldeconomie heeft verstoord, zouden stimulansen en vaccinatieprogramma's een sterke groeivertraging moeten voorkomen. De economische groei is de afgelopen maanden duidelijk vertraagd, grotendeels door de verspreiding van de bijzonder besmettelijke Delta-variant van
Weekly investment update: Risk assets performed well again in August. Chair Powell said nothing in his keynote speech at Jackson Hole last week to reverse the positive trend. Low real yields continue to underpin valuations in …
Equities have remained buoyant over the past weeks despite some challenges (China regulation, Afghanistan crisis), primarily due to the exceptional earnings seasons in the US and Europe. Looking ahead, we identify three main themes: the spread of the Delta Covid
Capital Markets Monthly Summer is coming to an end in the northern hemisphere. Whether the stock markets will begin to see cooler temperatures following the sharp price increases of these past few months, or conversely, whether we can expect an
Thematic equities in focus: After the rotation witnessed in Q1 2021, the second quarter was quieter, with elements of the inherent market volatility having subsided. However, investors continue to have questions around the prospect of inflation as economies continue to
Since the Sino-US trade war in 2018, some large developed countries have been pushing to reshore their global production, in effect seeking to ‘decouple from China’. Chatter about such a trend has raised concerns that Asian supply chains, which underpin
brief summary of their views. In his speech, Chairman Powell indicated that the US Federal Reserve (Fed) is on track to begin tapering its $120 billion-per-month asset purchase program later this year and shared a dovish view on US inflation.
Hydrogen can be seen as the answer to the challenge of reaching net-zero emissions as long as it can be produced without emitting CO2 – in other words, as long as it is green. Its characteristics have earned it the
Asset allocation: stimulus and vaccine offer enduring support Economic growth has clearly slowed in recent months thanks in large part to the spread of the particularly infectious Delta variant of Covid. Still, with monetary stimulus in plentiful supply and vaccination
Having outperformed other regional stock markets for much of the pandemic, Chinese stocks have fallen sharply over the past few months (EXHIBIT 1). Concerns around the Chinese economy slowing were blamed for the initial move, but more recent declines have
In March of this year, regulators across multiple jurisdictions made a well-orchestrated announcement that all non-USD LIBOR rates would be discontinued at the end of 2021. However, and much to the relief of market participants in the US, this announcement
The markets easily withstood many adversities in the summer. In the coming twelve months equities and real estate remain our favorites, though their potential returns are only moderate. Asurprisingly good quarter is behind us. Despite the delta variant, the U.S.-China
Stocks rose for a seventh straight month during August amid ongoing optimism that the global economy continues to rebound from the COVID-19 slump and as the US Federal Reserve indicated it won’t rush to …
The headline numbers tell a fairly grim story. Global dividend payouts fell 12.1%1 in 2020 as the COVID-19 pandemic forced economies to shut down for a prolonged period. The economic inactivity prompted many companies to go into …
