Our views on China – Momentum

With China now the largest economy in the world (on a PPP measure1) and the primary engine of global growth, investors need to think hard about how to gain exposure within global portfolios. The impact of Chinese policy decisions reverberate around the world, whether those are purely domestic or international in scope.

Global Investment Commentary July 2021

The delta variant and inflation have dominated the news throughout 2021, and July has been no different. As some countries remove their covid restrictions other nations, particularly across Asia, are seeing rising cases and fresh lockdown measures. Inflation has continued to be high across developed countries and central banks have provided more suggestions as to when stimulus may be tapered.

Third Withdrawal of Chilean Pension Funds

This Sunday, President Sebastián Piñera announced a project for the third withdrawal of 10% of pension funds, this in response to the proposal approved last week in Congress. This initiative will be sent to Congress on Monday, so that it can begin its discussion with great urgency.This project, unlike the one approved by the parliamentarians, considers a subsequent recovery of funds, in addition to a bonus for those who do not have a balance in their pension savings.

Q1 2021 MARKET UPDATE

It appears that inflation, rather than Covid-19, has become investors’ main concern.

Consequently, in the US, UK and even Germany, bond yields have risen to where they were in January 2020 and the direction of travel has been similar across all developed markets. But that is where the similarity ends. The US 10-year Treasury now yields 1.7% whereas the UK 10-year Gilt yields less than half that. The German bond is still in negative territory, yielding -0.3%.

EMERGING MARKETS-Chile’s peso climbs on plans to ease lockdowns; Most other Latam FX weaken

Chile’s currency firmed against a steady dollar on Monday on the country’s plans to gradually relax lockdown restrictions, while Mexico’s peso extended declines to a third day on declining oil prices and rising number of COVID-19 cases there. Chile’s peso CLP= rose as much as 0.6% after government officials presented the plan on Sunday as …

EMERGING MARKETS-Chile’s peso climbs on plans to ease lockdowns; Most other Latam FX weaken Read More »

Does Boom Always Follow Bust?

Four historians consider whether the sudden collapse of the world economy caused by the Covid-19 pandemic will be followed by an equally dramatic resurgence. ‘Great activity in Wall Street’, published in New York Herald, 19 March 1908. Library of Congress. For this historian, the next boom feels a long way off Catherine Schenk, Professor of Economic …

Does Boom Always Follow Bust? Read More »

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