Is pent-up consumer demand the key to unlocking value in Europe? In this article, John Bennett, Director of European Equities, considers some of the meaningful trends he believes could drive positive momentum in the region. Key takeaways As we progress
Global Asset Allocation: The View From Europe Following a shaky start to its vaccine rollout, Europe appears to be recovering as businesses are reopening and lockdowns continue to ease in some areas. As the European Central Bank debates the extension
Today, all eyes are on Europe. While the strongest national European football teams are animating a great competition, which is also signalling a sort of return to normality for Europeans, investors’ appetite for European equities is back and for good
Resilient and essential in the Post-Covid environment As an asset class, infrastructure debt possesses key characteristics that contribute to resilient performance. These include the large physical nature of the underlying asset, high barriers to entry and stable revenues linked to
The european union’s unprecedented foray into the capital markets promises not only a green, digital transformation for the region but potentially a new era of supranational borrowing. For much of the past nine months officials at the European Commission have
Global Asset Allocation – The View From Europe: The Federal Reserve has been consistent in its messaging that a near-term spike in inflation pressures will be transitory and recede once COVID-related impacts fade. The latest inflation print showed that prices,
When it comes to America’s biggest technology companies, it seems like regulatory risk has never been higher. Most large technology platforms are facing pressure from US and European authorities, while lawmakers on Capitol Hill seem more inclined to doing something
Responsible Investment has witnessed strong growth over the past five years. However, the past six months have seen it embark on a much steeper trajectory. If we take a Google Analytics view on worldwide searches for “ESG” (environmental, social and
When exchange-traded funds (ETFs) were introduced in Europe in the year 2000 it was hard to predict that these products would write an unbroken success story for more than 20 years. This becomes especially true when one is taking into
European equities have staged a spectacular rebound: Since their March 2020 low, they are up by more than 60%. So far this year, they have gained more than 13%. Still, there is the perception that the European market has significantly
News surrounding the pandemic has steadily improved this month, with cases dropping sharply across the US and Europe, and retreating in India. As such, confidence in reopening timetables is increasing, with global growth expectations growing in tandem. More and more
Fund flows to date have massively favoured US equities, but European equities now have considerable scope to catch up as the economic recovery broadens and investors reassess their valuations relative to their more expensive US counterparts. Peter Abbott, European equities portfolio
Europe is re-opening. The summer of 2020 is probably going to be the point of reference to gauge the magnitude of the looming economic rebound. The “mechanical recovery” could be spectacular again this year (assuming no bad Covid news). Indeed,
Following the OECD in March, the IMF is now preaching optimism on the outlook for growth. Against a backdrop of a less severe contraction overall than had been feared in 2020, world GDP is expected to increase by 6% this
Evolving consumer tastes. In the USA and Europe, a growing number of people are cutting their meat intake or giving it up altogether. As a result, in addition to vegans and vegetarians, there are an increasing numbers of flexitarians –
Deciphering Europe’s ambitions, actions and ability to reach net zero: The European Union (EU) has long led the world on climate action and policies. In December 2019 it pushed the boundaries again, unveiling the European Green Deal and its ambition
Global Asset Allocation: The View From Europe A renewed surge in coronavirus cases across several emerging markets (EM) countries—including India, Brazil, and Argentina—is weighing heavily on these economies as they struggle with insufficient medical infrastructure and access to vaccines. In
Volatility in interest rates year-to-date has unevenly impacted credit markets. Investment grade credit (IG) weakened in sympathy with sovereign yields, especially in high quality and long duration paper. IG bonds were down -3.6% in the U.S. year-to-date, and -0.5% in
Waarom Europa's ambitieuze nieuwe klimaatdoelstelling zal helpen om koolstofneutraal te worden en investeringen in de schone energie-industrie te stimuleren. Naar een hogere versnelling schakelen. Dat is precies wat de Europese Unie zojuist heeft gedaan in de stappen die ze zet
Global Asset Allocation: The View From Europe Equity markets are riding higher on unwavering optimism, which has driven the S&P 500 up over 20% above its pre-COVID-19 levels. Despite higher valuations, bouts of risk and pockets of froth in the
Investors hoping that pent-up demand will fuel a sustained post-coronavirus economic recovery in Europe may end up disappointed. Although a backlog of demand has built up during the lockdown, its potency is likely to be reduced by …
Strong economic data over the last week in the US, Europe and Asia appears to be confirming the perception among investors that a cyclical recovery is well established. As a result, valuations of risk assets have risen on the view that the pandemic will be overcome this year.
COVID-19 will leave an indelible scar on people and businesses which will take time to heal. While optimism mounts as global vaccination gets underway and spring shoots of recovery break through, the ever-present challenges that loom large on the …
Core government bond yields were lower and curves were flatter after a volatile week which, at one point, saw US and Europe diverge with US treasuries bear steepening while European government bonds experienced a bull flattening on Wednesday. Markets were caught between inflation concerns …
The U.S. and European Union (EU) announced a four‑month suspension of all tariffs related to the long‑running dispute about unfair government support for leading aerospace companies Airbus and Boeing, signaling President Joe Biden’s desire to realign trade relations. This pause came on the heels of a similar agreement between the U.S. and the UK.
After years of muted inflation, investors are becoming concerned as a massive amount of pent-up demand is expected to be unleashed as the economy reemerges in the coming months, bringing higher price pressures. The excess savings that consumers have accumulated over the past year, plus an additional near USD 1.9 trillion fiscal package on the way, could also lead to demand …
Investors can still find value in the European high-yield bond market even after a more than volatile 2020 in which risk premiums fell. While the starting yield may now look much less attractive, high-yield bonds continue to …
Policymakers globally are increasingly supportive of the climate transition. Europe recently announced its ambitious plan to reduce emissions by 55% by 2030, in line with its plan for climate neutrality by 2050. China has committed to carbon neutrality by 2060, Japan and South Korea by 2050. More than 50% of global GDP is …
Markets continued to focus on hopes for a recovery rather than risks. The epidemic seems to be slowing in the United States and in United Kingdom. It appears to be under control in Europe.
While the Biden administration put eradicating the coronavirus at the top of its agenda, taking action on regulations with executive orders has also been a top priority. Deregulation was a defining focus of …
2021 began with renewed bouts of volatility with a tug of war emerging between concerns over slow vaccine rollouts especially on the continent and delays in US fiscal support against positive earnings trends.
With the pandemic-induced shutdown of 2020 — which caused the worst recession since the Great Depression — behind us, solid growth is expected across major economies in 2021, according to the International Monetary Fund (IMF).
Capital Group European Opportunities (LUX) will be available to investors in Asia and Europe with its launch as a Luxembourg-domiciled fund in February 2021. The fund will offer access to a longstanding European equity strategy, originally launched as a segregated account in 1992. The fund will be managed by …
After a rollercoaster 2020 for European high yield markets, 2021 looks set to be more stable. Fears of high levels of corporate defaults have proved unjustified, allowing high yield to rebound in 2020 and setting the scene for the coming year. While the second Covid-19 wave, and the new variant, are weighing on recovery, once vaccinations bring the virus under control a degree of normality …
Unprecedented monetary and fiscal stimulus and late-year positive news on vaccines fueled a relentless rally in …
In September 2020 we published our long-term outlook (link). At that time we anticipated that the economic recovery in the eurozone would start in the second half of 2020 and that the rebound would continue into 2021. Unfortunately, after a strong economic recovery in the third quarter, many eurozone countries imposed new lockdown …
In a turbulent 2020 infrastructure was an apparent safe haven, proving relatively resilient. However, the unprecedented shock to the asset class across all industry sectors and geographies at the same time, in a short period of time, has provided food for thought on several issues.
In the last few years new words have been invading our everyday vocabulary. We have gone from ‘climate change’ and ‘green economy’ to the more specialised ‘sustainability’ and ‘integration’ and the utterly bizarre ‘principal adverse impact’ and ‘taxonomy’. What is
Market Flash Falling temperatures have exacerbated the global sanitary situation. In Europe, Germany and the UK reinforced restrictions. Cases have also started rising again in Asia, a worry for Japan and South Korea which had managed to control the first
There are reasons for optimism in 2021. Forget a U-shaped recovery; the letter we look for in 2021 is V, which stands for vaccine. Our baseline scenario is that vaccines roll out across Europe in early 2021, allowing business and
Aandelenmarkten lopen vooruit op het economisch herstel in Europa, al is de omvang nog onduidelijk. Beleggers zullen in de eerste helft van 2021 nog geconfronteerd worden met extra volatiliteit, ondanks het positieve nieuws over coronavaccins. Wél zijn er duidelijke pluspunten
Monthly Investment Outlook – December Key points Downside risks weigh on Q4 growth in several countries due to rising contagion and pressure on hospitals; European activity should contract in Q4, and a parallel slowdown is expected in the US, while
European equities | December 2020 The EU’s decision to put building modernisation at the heart of its drive to reduce CO2 emissions heralds a major spending programme to transform energy efficiency. It also represents a wider drive across the continent
Monthly Investment Outlook – December Key points Downside risks weigh on Q4 growth in several countries due to rising contagion and pressure on hospitals; European activity should contract in Q4, and a parallel slowdown is expected in the US, while
Capital Group New Perspective Fund (LUX) It’s been five years since Capital Group launched its New Perspective strategy in a Luxembourgdomiciled vehicle, giving investors in Europe and Asia access to a core global equity strategy with a successful 47-year track
Multi-asset | November 2020 Coronavirus cases are rising at an alarming rate in the US and Europe, so why are equities reaching new highs? With the Covid-19 case count rising rapidly across the United States and Europe, the immediate economic
White Paper: European Small Caps – Rising Stars The big story in 2020 has been the coronavirus pandemic and its impact on the global economy, government finances and corporate earnings, leading to heightened levels of equity market volatility. Smaller companies
Investment Outlook 2021 – Legacy of the Lockdowns TAKEAWAYS The global economy faced a crisis of unprecedented magnitude following the coronavirus pandemic lockdowns. A sharp global contraction in early 2020, and possible renewed dip in Europe in the fourth
UBAM – Hybrid Bond Opportunity in European Banks AT1 bonds Key takeaways: Fundamentally, European banks are solid with strong capital ratios and should exit the Covid-19 crisis unscathed The macro picture continues to improve, assisted by significant central bank support
"With deficits growing and the outlook uncertain, finding yield and assets that will benefit, rather than suffer, from the current policy response, is a growing problem. We believe cocos fit the bill for these issues."
