We believe that investors have a role to play in advancing human rights in supply chains. At Candriam it is our conviction that companies which embrace sustainabilityrelated opportunities and challenges in combination with financial opportunities and challenges are the most
A toxic policy mix in 2024? The Eurozone is heading into a challenging 2024 with both fiscal and monetary policy turning restrictive as real rates turn more limiting and governments tighten their belts. As the terminal nominal rate has likely
The future path of interest rates is highly uncertain, but we can at least be fairly confident that the level of rates will be substantially higher in the medium term than it has been in recent decades—in the U.S. and
Biodiversity is not just the latest buzzword; it is the foundation of all life on Earth. Beyond its ecological significance, biodiversity plays a pivotal role in ensuring humanity’s long-term survival and prosperity. In this Flash Update, we explore: The importance
Some European investment grade companies have taken advantage of the long period of low or even negative yields to optimise their balance sheets by building up abundant liquidity. Our senior bond analyst Catherine Reichlin analyses the situation in her latest
Key points on the 2023-2024 scenario: Moderate global growth is expected in 2023 and 2024. The Asian recovery seems set to moderate over the next quarters, but it will remain a large contributor to global growth. Modest growth is expected
Over the past two years, the Federal Reserve (Fed) has delivered its most aggressive rate hiking cycle in over 40 years. Yet despite these efforts to slow down the US economy, growth has so far proven remarkably resilient. This resilience
Our key forecasts for major regional economies September 22.
The original text, "Winter looms…", delves into the challenges central banks in developed countries face in targeting inflation without initiating a recession. The spotlight is also on China's struggle against deflationary pressures amidst real estate issues and stunted household demand.
The text provides a comprehensive analysis of the economic landscape as captured in "Month In Macro". It delves into the patterns observed in the nominal and real GDP, the liquidity conditions, equity markets, and the implications of these findings on
The underlying narrative also addresses global liquidity, which has consistently bolstered global equity markets. Noteworthy is the monumental liquidity injections that played a pivotal role in supporting the global equity markets in the first half of 2023. As China grapples
The overarching theme of the provided text is the critical need for sustainable energy investments in emerging countries, with the aim to counter global climate change and achieve positive socio-economic outcomes. The report sheds light on the growing energy consumption
Emerging Markets—Dancing to Their Own Beat is an intricate exploration into the current economic and monetary policies in emerging markets (EMs) against the backdrop of a shifting global economic environment. The piece provides insights into monetary policy trends, the slowdown
Interest rates, for the past decade, lingered at ultra-low levels but have recently rebounded to their historical "home" range of 3-5%. This shift is attributed to evolving factors post-COVID, setting the stage for a configuration of growth, inflation, and fiscal
The global economy has demonstrated remarkable resilience in the face of various challenges emerging from the pandemic's aftermath. Growth has remained consistent for the majority of major economies this year, with numerous threats to growth being addressed. However, there's an
The text, "Global Asset Allocation: The View From Europe – Market Perspective", highlights the varied economic growth patterns and challenges faced by major regions globally. With fluctuating inflationary pressures, central bank policies, and concerns related to China's property sector and
Capital Group's report titled "Will India be the breakout emerging market this decade?" highlights India's potential for sustainable growth in the coming years. A combination of significant expansions in both direct and fixed asset investment places India at the forefront
Aegon Asset Management's report, "Net-zero Investment Framework: Carbon Footprinting," highlights the challenges that investors face in constructing investment portfolios that align with the goal of achieving net-zero emissions by 2050. The report emphasizes the lack of a global market standard
The Eurozone economy has stagnated over the last three quarters, although growth in the second quarter was marginally positive due to strong idiosyncratic growth in one or two smaller countries. The countries that are more dependent on services, such as
The major US indices had been on track for a winning weak until Friday's retreat, amid an uptick in Treasury yields and mixed economic signals. The core monthly consumer price index (CPI), which excludes food and energy, was up at
The trends observed since the start of the year have persisted through the summer. The US economy continues to beat expectations, buoyed by a robust domestic demand that shows little sign of abating. Even with a minor downward adjustment to
Heightened market volatility and uncertainty has once again refocused investors’ minds onto answering the question of the optimal route to constructing a well-diversified portfolio. The benefits of diversification are always sought, and while the correlation between equities and bonds turned
Edward Harrold and Jeremy Cunningham, esteemed Fixed Income Investment Directors, delve into the fascinating realm of emerging market debt (EMD) in their report titled "Local currency EMD – Why it might be time to reconsider an active allocation". At its
"Hard and local currency bonds provide different routes to returns" elucidates the distinct attributes and benefits of emerging market (EM) bonds. This asset class presents two primary investment avenues: hard currency-denominated bonds and local currency-denominated bonds. Emerging market hard currency
The provided text highlights the economic issues faced by Germany as it encounters potential contraction amidst a myriad of challenges, such as slowing demand for exports, high energy costs, and policy uncertainties. "Germany needs more than a plan" emphasizes the
Essay on Unlocking Income Opportunities The main theme of the text emphasizes the burgeoning income opportunities in the fixed income sector, especially amidst the prevailing market volatility and uncertain economic environment. Elevated bond yields offer potential for higher income, acting
The recent analysis of the regional banking sector illustrates a complex environment. Despite regulatory attempts to stabilize the situation, regional banks are still grappling with higher funding costs, primarily stemming from the Federal Reserve's quantitative tightening. Although some regulatory changes,
The text "Global Investment Views – Divergences persist: US resilience vs China weakness" paints a comprehensive picture of global economic dynamics in August. While the US showcased its economic mettle, largely driven by fiscal stimuli and business investments, China experienced
Investing in a slowing economy presents its unique set of challenges and opportunities. Jim O'Donnell, CEO of Citi Global Wealth, introduces their 2023 Mid-Year Wealth Outlook titled "Opportunities on the Horizon: Investing Through a Slowing Economy". In this report, key
The recent fluctuations in the Federal Reserve's overnight reverse repurchase facility (RRP) depict a significant development in monetary mechanics. Since the June 1 debt ceiling resolution, RRP balances have seen a staggering drop of over $600 billion. This trend was
Global Markets and Resilient Income Streams The document, "Go global for higher income opportunities", dives deep into the increasing value of incorporating global income streams as traditional income avenues face disruptions. Edward Harrold, the Investment Director, paints a picture of
De Investment Outlook 2024, geeft inzicht in de belangrijkste economische en financiële trends voor het komende jaar. Centraal staan thema's zoals geopolitieke fragmentatie, het aanhoudende conflict tussen de VS en China, klimaatverandering en de opkomst van Kunstmatige Intelligentie (AI). Terwijl de
The Chinese consumer is at the heart of public support measures but rebuilding confidence will take time. More support measures are likely by year-end to stimulate employment (e.g. corporate rate cuts, notably for SMEs). Cash handouts or VAT rate cuts
The Japanese economy’s growth has come thanks to Japan’s unique combination of strong corporate operating earnings yields, ultra-low finance costs, and ample opportunities to improve operations. The yen weakened in 2022 as the Bank of Japan (BOJ) prevented domestic yields
Equities endured losses as yields moved up, US dollar strengthened and oil prices continued to rise. Macro readings in the US remained strong with ISM Services PMI at 54.5, ahead of 52.4 expected, while Jobless claims fell to 216,000 which
This white paper explores the performance of several balanced portfolio allocations in various economic environments and provides insights into the impact of asset allocation on portfolio performance. In the first part of the article, we analyze the performance of two
Progress often precedes conflict. Take the birth of science during the age of enlightenment. One of the greatest controversies of the 17th century happened when Leibniz and Newton locked horns over who invented calculus first. Both men undoubtedly knew they
Voor het eerst in tien jaar is in bijna alle ontwikkelde landen in de Global Retirement Index (GRI) van vermogensbeheerder Natixis Investment Managers de algemene pensioenzekerheid verbeterd ten opzichte van het voorgaande jaar. Belangrijke factoren voor de verbetering van de
While machine learning models are increasingly being used to predict returns, little progress has been made to leverage models for factor portfolio attribution, a critical component in analysing systematic portfolio returns. What are the limitations of existing methodologies, what is
We believe that most central banks (including the Fed, ECB, SNB, though not the Bank of England) have reached peak policy rates. As the economic data is still quite resilient in the United States and inflation is proving to be
Successful endowment model investors generally understand the complexity of the approach and have experience and resources to manage them. One of the biggest mistakes an investor can make is adopting a strategy that they or future constituents won’t be able
More challenging macro environment. Global GDP growth is projected to decelerate to +2.5% in 2023, as low as in 2019. Advanced economies will likely dodge a full recession but will experience low growth in 2023 and 2024. Post-pandemic, consumers have
We agree with today’s narrative: AI promises to revolutionize the economy and our lives. Because Nvidia has emerged as the cornerstone company designing chips for the AI revolution, investors are understandably euphoric about the prospects for its stock price. We
China’s economy has undergone a remarkable transformation over the past 70 years, catapulting the country from its predominantly rural roots to a vibrant, urbanized industrial powerhouse. After the communists took control in 1949, the state exercised tight control over the
The European Union's sustainable finance regulatory framework, three years since its inception, has seen significant evolution and growth. Embracing key concepts like 'double materiality', the community has adopted the EU's Sustainable Finance Disclosure Regulation (SFDR) since its launch in March
In the "Monthly Market Review" for August 2023, market dynamics reflected heightened volatility due to various geopolitical and economic influences. Notably, China's property market distress and the corresponding weak macroeconomic indicators have caused significant tremors. As a direct consequence, the
In the enlightening research titled "Why living wages should be considered a driver of human capital value, not a cost," the author dives deep into the intertwined complexities of wages, human rights, and sustainable development. Amidst the aftermath of a
In August, the global financial landscape was dominated by hawkish stances from key central banks in developed markets, with the Fed, under Jay Powell's leadership, emphasizing its intention to control inflation. This, coupled with stronger than anticipated US economic data,
Global economic trends have been reflecting a distinctive surge, but Japan’s story stands out. Multi-Asset Solutions Strategy Report offers an in-depth analysis into the reflationary dynamics of Japan, addressing the transformative potential in the country's economy and financial market. The
In the face of global economic unpredictability, bond investments have emerged as potential shields against market volatility. The present landscape showcases enticing opportunities in credit markets with starting yields ranging from 5.5% to 8.5%, hinting at promising long-term returns. The
