Opinion

Jerome Powell is stepping down as chair of the Federal Reserve. Kevin Warsh will succeed him. For investors, the big question is whether US central bank policy will really change. The short answer: yes, possibly. And the reason is AI.

Almost daily, I find myself amazed at how people simply refuse to see certain things. On the street, in politics, but also in the financial markets.

The European Central Bank (ECB) finds it wonderful to see that the euro is gaining popularity around the world, now that the image of the US and, in its wake, the dollar, is suffering from US policy and the country’s stance on the global stage.

Donald Trump likes to present himself as a leader guided by instinct and personal conviction. International treaties, diplomatic traditions, and established norms are, in his view, merely suggestions that he can ignore at will. This attitude lies at the heart of his political identity: America first, and whatever Trump believes is good for America is what will happen.

When everyone expects the same thing, it is time to think differently. A good example comes from Value Line, a company that makes stock market forecasts. They predict higher returns when valuations are low. Individual investors do exactly the opposite.

An insignificant Danish pension fund dumps all its US Treasuries. Financial media eagerly jump on this headline, because that is not something most investors would just expect. About the underlying structural cause, which has little to do with a president gone off the rails, you hear a lot less.

In Asia, Luxembourg’s challenge is not explaining its rules, but translating stability, judgment and trust across cultures and expectations globally, Christophe Santer finds.

The global economy is facing significant challenges. Geopolitical tensions are often palpable, and the sharp rise in precious metal prices suggests that fear is widespread, likely driven by a range of perceived threats.

In the run-up to the Senate elections later this year, a presidential candidate has been making some rather odd moves. After briefly plucking away the president of a, at least on paper, sovereign state, and more or less annexing Greenland, again on paper, the chair of the US central bank was next in line. As a result, crucial charts that already tend to stay out of the spotlight receive even less attention. Fortunately, not here.

The product classification in the revised SFDR does not allow for any ‘shades of green’. That is regrettable, because precisely such labels would make investment choices clearer for investors.