Worldwide inflows into ESG funds decline
Worldwide net inflows into Exchange Traded Funds with an Environmental, Social and Governance (ESG) profile fell to 9.8 billion dollars in January compared to 19.8 billion dollars the same month a year earlier, according to London-based research firm ETFGI.
The firm said ESG funds now have experienced 37 consecutive months of net inflows.
Stagflation scenario, so far, looks premature
Russia’s invasion makes it more difficult for central banks to keep inflationary pressures at bay. Rising commodity prices weigh on the cost of living in the US and Europe. Restrictive effects of the Ukraine war on economic recovery are also increasing, but a full-fledged stagflation scenario so far appears premature, one investment strategist told InvestmentOfficer.
Luxembourg reforms its business registers
Part of Luxembourg’s effort to tackle allegations that it enables questionable business and tax practices through a lack of transparency will be significantly upgraded through new rules, technical capacities, increased staff and administrative penalties by 2023.
Under a reform project involving a draft Grand-Ducal regulation announced last week, the Luxembourg government body that makes available business registration information – including a ultimate beneficial owner registry - will be overhauled and have its staff doubled.
Grain market greets Ukraine war with volatility
Global commodity markets are watching the unfolding war in Ukraine with trepidation amid broad expectations the violent conflict will result in shortages for anything from aluminium to zinc. One global market, grain, is particularly vulnerable, as Russia and Ukraine together account for a very significant part of global production of wheat and barley. Wheat prices already reached a ten-year high this week.
Bettel urges caution on banning Russia from Swift
Luxembourg fully supports the European Union’s additional sanctions against Russia over its aggressive move towards Ukraine but supports a cautious approach with the EU’s plans to eject Vladimir Putin’s country from the international payments system Swift. If that happens Russia will in essence be cut off from the world economy.
Spacs still prospering despite challenging conditions
Spacs – special purpose acquisition vehicles – had a very good year in 2021, with some 600 Spacs raising 165 billion dollars but they are, like the rest of the economy, adapting to the new post-Covid economic reality. Many investment banking and legal experts active in the Spac field see them continuing to do well.
Top 5 Southeast Asia: with praise for Vietnam
Slowdowns in emerging markets don’t bode well for the asset class, but as we know, one market is not like another. In this top 5, Morningstar analyst Thomas De Fauw looks at funds that focus on opportunities in Southeast Asia.
Investors mainly invest in emerging markets because economic growth there is usually higher than in more developed markets. Although this is still the case, the difference has recently fallen to an all-time low.
The second Cold War is hot
Western leaders are struggling with their response to Putin’s latest challenge. They agree that it should look like a unified position. In this respect, they are mainly writing down measures that the United States and Western Europe are prepared to take if Russia takes the next step. In this context the combination of French boasting and German passivity is not a happy one.
AXA IM : How the ESG data dilemma rewards active investors
What you can measure you can manage. In responsible investment that has steadily become a practical reality, but thoughtful and analytical management is still required to make sense of sometimes uneven inputs and difficult comparisons.
Strategists analyse market shock triggered by Putin's aggression
Global financial markets were in turmoil on Thursday in a clear sign that investors had not expected Russian President Vladimir Putin to make an aggressive move into Ukraine by launching a full-scale invasion.
“Even just yesterday people were dismissing this as unlikely,” well-known economist and Fed watcher Mohamed El-Erian, advisor at the Allianz & Gramercy said. “This is way beyond anything. This is a very unsatisfactory situation.”