ECB Watch: Cultivating cult-like behaviour

In the pursuit of an inclusive and engaging workplace, the European Central Bank (ECB) emphasises respect, talent development, and diversity, as per its official website. However, recent remarks from ECB board member Frank Elderson and President Christine Lagarde have sparked concerns and raised questions about the bank’s commitment to diversity of opinion.

A new eurocrisis

This year commemorates the 25th anniversary of the euro, but the festivities are notably absent. In times gone by, the Dutch guilder stood as a robust currency, challenging even the Swiss franc. However, those golden days are now but a memory.

Famous last words

It’s fascinating to observe central bankers like Federal Reserve Chairman Jay Powell outside their usual realm, especially on platforms like CBS’s “60 Minutes.” Powell’s candid admission about the US being on an unsustainable fiscal path is a concern is shared by many investors, including myself, particularly regarding the sustainability of mounting debt used to stimulate economic growth.

The law of increasing excess returns

The landscape of the technology industry has been dramatically reshaped since the onset of the coronavirus crisis, with big tech companies witnessing their operating profit margins leap from 24 to 29 percent. In stark contrast, other companies have seen a decline of two percentage points in the same period. This trend, far from fostering competition, is solidifying a ‘winner-takes-all’ economy.

The time for true green investing is now

As the global investment community grapples with a fluctuating market and evolving attitudes towards ESG (Environmental, Social, and Governance) funds, a nuanced story is emerging from Europe. This narrative, against the backdrop of Amundi’s “Responsible Investment Views 2024” report and innovative steps by Mirova and Robeco, is further illuminated by Morningstar’s latest findings on global sustainable fund flows.