IMF warns of ‘permanent fragmentation’
The International Monetary Fund has warned of a more permanent fragmentation of the world economy into geopolitical blocks with distinct technology standards, cross-border payment systems, and reserve currencies. The fund has lowered its growth outlook for the global economy and warned that inflation in many countries is threatening to undermine future growth. “Inflation has become a clear and present danger in many countries,” the IMF said.
PGIM Investments: The Fundamental Truth In The Permanent Or Transitory Debate
PGIM Quantitative Solutions’ CIO George Patterson considers four prominent investment topics through the transitory vs. permanent lens: Value vs. Growth, Meme Stocks, ESG Investing, and the Big Data Revolution.
High-yield corporates at a virtual standstill
Rising interest rates and continuing tension surrounding the Ukraine conflict have brought the issuance of high-yield corporate bonds in Europe to a virtual standstill. “The size and speed of the current interest rate increase is causing companies to stop going public and the market to virtually dry up,” said one specialist.
MiFID II to test SFDR labelling misconceptions
Failure to understand the requirements of the Sustainable Finance Disclosure Regulation, known as SFDR, could expose asset managers to reporting and greenwashing risks, not least with the sustainability preferences aspects of MiFID II coming down the pike. “SFDR has been very often seen by some as a product classification and even as a product-labelling initiative, both of which are absolutely not the case,” Nathalie Dogniez, a partner with PwC Luxembourg told Investment Officer.
Morgan Stanley IM: Managing Portfolios in an Inflationary World
While this year’s sell-off appears to be driven by sentiment rather than earnings, both the war in Ukraine and China’s renewed lockdowns put further upside pressure on inflation and downward pressure on growth. The risk is markets take another leg down.
Top 5 emerging markets shares: Nordea 1 in the lead
For emerging countries, the first quarter of 2022 was dominated by the war in Ukraine unleashed by Russia. Equities from Russia itself suffered particularly badly. Various index compilers, including MSCI, have removed Russian shares from all their regional indices. At a price of 0, the MSCI Russia index has suffered a loss of 100 percent this year.
In Flux: a bubbling housing market, Reifs and rising rates
If there is one economic lesson my father, a construction engineer, taught me, it’s that mortgage rates in Europe always follow what’s happening in the United States. When rates go up across the Atlantic, they’re bound to do the same in our part of the world. So when it comes to locking in a good mortgage rate, look west.
Lagarde's roadmap for rates draws a mixed response
As inflation persists across Europe, with double-digit numbers for some eurozone countries, ECB President Christine Lagarde’s road map for upcoming interest rates hikes drew a mixed response in the markets.
The European Central Bank on Thursday, in no hurry to raise interest rates while inflation pressures continue to build, took another small step on its journey towards higher eurozone benchmark rate as Lagarde repeatedly underlined the need for flexibility in the bank’s monetary policy.
Transfers: Dries to lead EY's wealth and AM tax team
Rosheen Dries has joined EY Luxembourg as the firm’s new wealth and asset management tax leader. She brings more than 25 years of reporting and tax experience in Ucits and alternative finance.
‘Globalisation, as we know it, is probably over’
In an interview with Investment Officer, Ritesh Jain, an influential global macro strategist, trend watcher and advisor to family offices and investment companies from India, says that with Russia’s expulsion from the Swift digital payments system, the West is crossing a dangerous divide that will have far-reaching consequences for the global world order. “Globalisation, as we know it, is probably over.”