Amerikaans president Joe Biden is 100 dagen aan de macht. Hij maakt flink vaart bij het aanpakken van de pandemie. Maar hoe ziet zijn beleid er na corona uit? Om 8:00 uur lokale tijd nam Verenigde Staten-correspondent Michiel Vos in
Event-Driven strategies saw exciting developments in recent quarters, in a context where global M&A volumes saw the strongest start to the year ever. Global M&A volumes, close to USD 1.5 trillion year-to-date, were fueled by a flurry of U.S. acquisitions
The Weekly Brief: Net zero commitments are hitting the headlines, following President Biden’s recent pledge to cut US greenhouse gas (GHG) emissions in half by 2030. In total, 58 countries, representing 54% of global GHG emissions, have now communicated a
As the U.S. continues its COVID-19 vaccination program, the Return to Normal Index measures human activity data relative to prepandemic levels. The index is constructed by our data scientists and fundamental analysts and tracks activities in the U.S. including travel,
Opportunities presented by public policy in the Biden era. Within T. Rowe Price, our Public Policy Research team supports our analysts and portfolio managers through all stages of the investment process. We work closely with our environmental, social, and governance (ESG) team to
The US market hit all-time highs during the first quarter and a number of non – US markets joined the march upwards, including the Canadian and European equity markets. Those non-US markets have tended to have a healthy tilt toward
In Credit: Government bond yields were little moved last week. The benchmark US 10-year note ended the week with a yield of 1.58%, barely moved from a week earlier. Inflation expectations, which have risen materially in the last year and
In Credit Inflation arrived in the US last week. There was also a bumper crop of strong economic data releases. This had been largely expected and remarkably yields fell to the lowest level in a month with the US 10-year
Aggressive stimulus and labor market tightening mean higher inflation risk. Asset and commodity prices have been moving in line with the view that supply constraints and a weaker U.S. dollar are putting incipient pressure on underlying inflation trends. Contrary to
Amid a US economic boom, how high can rates go? The possibility of an economic boom this year has stoked worries about higher inflation and prompted a sharp selloff in US Treasuries. We spoke with fixed income portfolio manager Pramod
Webinar – 100 dagen Joe Biden: dit betekent het voor beleggers De eerste 100 dagen nadat een nieuwe president het Witte Huis betrekt, vertellen veel over hoe zijn bewind eruit gaat zien. Joe Biden wil in deze periode 100 miljoen
Market weekly The outlook for US interest rates is shifting towards a normalisation of central bank policy now that the economic recovery appears to be entrenched. Ken O’Donnell, head of short duration fixed income, discusses how investors could tackle this
Monthly Investment Outlook ■ In March, rising yields caused a dramatic rotation in equity markets, leading to modest gains in stock market indices, while exposing global bond investors to losses. ■ Economic activity in the world’s largest economy continued to
There has been a degree more stability or calm in core government markets over the last couple of weeks. This comes after a very difficult start to the year, especially in the US.
Disappointing US dollar bond returns in EM local currency debt has led to a decline in flows into the asset class over the past decade. In this paper, we discuss the key reasons to invest in EM local currency debt, some of the factors behind the recent weakness in the asset class returns and prospects for the asset class going forward.
First, we look at a recent publication from GMO named “The duration of value and growth”. Here they look at the comparison between bond duration and value and growth. The advancement of the coronavirus in the market has reinforced the idea that value stocks are ‘short duration’. This means that whenever bond yields rise …
The ebb and flow of US real interest rates, inflation expectations and the future level of policy rates remain the key drivers for asset returns globally. For example, local currency emerging market debt yields have largely mirrored those of …
Valuations of clean energy stocks, as represented by the iShares Clean Energy index, (an exchange-traded fund (ETF) that we view as a proxy for the clean energy equity sector), are now up by around 16% from the lows in early March.
Rising UST yields amid hopes of economic recovery are causing the markets to question whether the Fed will pause its bond-buying programme. We don’t think the Fed will change its accommodative stance in the near term. However, investors should prepare …
The global selloff in growth stocks during Q1 2021 did not spare the China internet sector. However, as these companies’ Q4 revenues prove, the portion of consumer spending done online has continued to grow even as the pandemic has receded. We believe the recent volatility in internet and growth stocks, in both the US and China, is only …
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.
Asian equities peaked twice in the first quarter amid optimism over the recovery in China, the prospect of improved relations between the new US administration and China, and the arrival of COVID-19 vaccines. Zhikai Chen, head of Asian equities, argues the outlook for much of the region remains positive, even after a valuation-related stumble.
Valuations of risk assets have marked a pause in the face of a number of headwinds. In our view, valuations remain underpinned by ample central bank liquidity and the prospect, in the US, of further fiscal stimulus.
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 sell-off in US Treasury bonds reversed over the last week with the 10-year bond yield dropping from its intraday high of 1.75% on 18 March. The decline was driven principally by falling real yields as inflation expectations were mostly stable. There was also a reversal in the recent outperformance of value stocks relative to growth stocks.
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.
Apartments, along with industrial, are the preferred sectors in 2021 for investors in US property, according to the Pension Real Estate Association, Investment Intentions Survey.1 The case for apartments is welldocumented and well-supported by data from a variety of sources. In the US, apartments have offered investment returns …
Beyond the immediate challenge of the pandemic, the US-China relationship is the main source of global instability. On this front, the newsflow is not encouraging. The meeting in Anchorage between the US Secretary of State and National Security Advisor with their …
As the economy recovers and cyclical stocks begin to outperform, how should we think about the connection between equities and US Treasury yields? A recent rapid increase in US Treasury yields has unsettled equity markets, and to understand this
Bad news on the health front; volatile economic data; hopes that the US national 4th of July holiday can be celebrated with a BBQ; and further lockdowns, in place or imminent, in Europe. This odd concoction on the anniversary of the Great Lockdown did not keep …
The economy remains on pause in many parts of the world, but the vaccine rollout improves the odds of normalization and supports a positive medium-term outlook. In the meantime, global economies remain supported by the large stimulus measures from …
A pick-up vs. EUR-denominated investment grade bonds of +110 bps, investors lock-in a higher yield in the USD market as hedging costs to EUR remain low …
Joe Biden’s inauguration looks increasingly likely to mark a sea change for sustainable investing. This could have lasting implications well beyond U.S. shores.
Has the Fed Turned Hawkish by Allowing Bond Yields to Surge? It seems happy to let financial market conditions tighten. Surging yields on U.S. government debt are tightening financial market conditions, but the response to this from Federal Reserve Chairman
Year-end data shows that 2020 turned out much better for US commercial real estate (CRE) than many had hoped, with the National Council of Real Estate Investment Fiduciaries (NCREIF) benchmark index delivering a positive albeit low 1.6% total return with the 4.2% income return more than offsetting a negative 2.5% capital depreciation.1 We believe this outcome can be …
The first 100 days in power for any new presidential administration is never easy. With US-China relations at arguably their lowest point in 50 years, the administration of US President Joe Biden will have to make some difficult policy decisions that could affect the balance of the world’s two largest economies. How could the relationship evolve over the next four years?
Distinguishing between short and long-term issues Weekly investment update Keeping a weekly column like this one going brings home the sense of immediacy that frequently grips financial markets and that can fuel short-term spikes or dips as we have seen
February saw US fiscal authorities take the baton from the Federal Reserve and surprise on the upside in terms of proposed spending programmes in the months ahead. This served as a tailwind for global equities and a headwind for …
The interest rate shock in the US is continuing, with 10-year government bonds now yielding around 1.6%, up with more than 60 bps since the start of the year. The confirmation of the 1.9 trillion USD stimulus bill by the US Senate this past weekend will support the trend of higher yields. Up until now, equity indices have largely shrugged off this sharp move in rates, but their overall performance hides a …
In the week of 22 February the 10-year Treasury yield jumped to its highest level since 14 February 2020 of 1.614%. This unexpected increase in yields makes us wonder what the institutional outlook is for rates and treasuries.
With investors struggling to find much‑needed yield, we believe emerging market (EM) local bonds offer attractive opportunities. The yields on offer from a number of EM local bond markets are among the highest currently available in fixed income, while EM currencies are attractively valued and look set to benefit from the U.S. dollar cycle …
Winter hit with a vengeance in Texas during the week of February 15 significantly impacting electricity production in the state. Extreme cold temperatures in the region affected the entire electric grid leading to massive rolling blackouts. Customers suffered as blackouts persisted, pipes began to burst in homes and power costs spiked for those who could get it and had variable contracts.
As one of the world’s largest economies the US is a key focus for investors. With every country attempting to return to normality following the coronavirus pandemic, we are monitoring when US economic activity might get back on track, as well as other measures of “normality” …
It was Presidents Day in the US on 15 February and we imagine ex-President Trump will be celebrating more than most after being acquitted in his second impeachment vote. There was, however, less to celebrate in government bond land.
When you find yourself in a hole, stop digging.” This time-tested maxim can work well for finding a path out of personal debt. Small behavioral changes can allow people to stop running up credit accounts and start paying them down. But when the “hole” represents …
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.
Keynesians were fairly united when they were in the policy wilderness, but now that their views are dominant and they can finally seize the levers of macro policy, dissent is emerging. Lawrence Summers is taking issue …
The US inflation numbers published this week by the Bureau of Labor Statistics were slightly below consensus at 1.4% for annual headline inflation, basically unchanged from last month. Quite a contrast compared to the latest German and EU inflation numbers, which were …
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.
