UBS AM: US-election outcome sets stage for weaker dollar
Joe Biden won the US presidential race and is likely to take office with a Republican Senate. The stage is set for sustained US dollar weakness and the continued outperformance of emerging market assets.
Capital Group : U.S. election results bring policy priorities into focus
Now that the results of last week’s U.S. elections are coming into focus, investor attention is shifting to the policy implications of a Joe Biden presidency. Bottom line: Don’t expect big, sweeping changes in the years ahead.
What risk to Luxembourg banks post Covid?
The withdrawal of economic support post-pandemic could cause a shock for Europe’s banks akin to the global financial and eurozone crises, reckons the ECB. How well prepared are Luxembourg’s banks for any potential future financial crisis?
JP Morgan AM: US equities make way for Europe and EM
The American exceptionalism will finally make way for outperformance of European and EM equities, according to JP Morgan AM’s annual long-term capital market assumptions.
Outperformance without big tech? It’s possible!
In recent years it has been impossible for global equity funds to beat the index without a substantial allocation to the FAMANG stocks. But the Global Disruptive Opportunities fund of CPR AM, a boutique of Amundi, has done it. We asked fund manager Wesley Lebeau how.
GaveKal: not Covid but the renminbi is the event of 2020
What was the most important event to precede the 2008 financial crisis? Was it BNP closing its money market funds or the oil price exceeding the $100 mark? No, it was the introduction of the iPhone in 2007. And what’s the event of 2020? Surely it is Covid-19, right? No, says GaveKal’s Louis Gave, it’s the renminbi. ‘The renminbi is for the dollar what the iPhone was for Microsoft: the introduction of a parallel operating system.’
Covid-19 vaccine: has the value rotation arrived?
Pfizer’s coronavirus vaccine that sent global stock markets higher on Monday prompted double digit gains in value stocks while growth companies saw their share prices tumble. Is this the long-awaited rotation to value?
Hydrogen – the next frontier for energy investors
Hydrogen will play a key role in the energy transition and will therefore offer plenty of opportunities for investors. However, investors should not underestimate the diversity of the hydrogen market, according to Candriam.
The Belgian asset manager notes in its report “Hydrogen power - Enabling a virtuous decarbonisation loop” that recent government measures to highlight the potential of hydrogen as an energy source of the future have boosted the performance of certain hydrogen stocks. Some stocks have even tripled in the last twelve months.
ILA: companies should prepare for EU regulation on corporate governance
Is the European Commission planning to regulate European corporate governance practices? Last week, we highlighted the on-going sustainable corporate governance initiative, which is exploring options at the EU level. Karen Wauters of the Luxembourg Directors Assocation (ILA) believes its members must have a strategy in the face of this process.
Asset managers: neck and neck election race ‘worst possible outcome’
The too-close-to-call race in the US presidential elections is the worst possible outcome for investors as it will make it difficult to implement an effective stimulus package for the economy, according to asset managers.
We should bear in mind the persisting uncertainty around the elections will not only affect financial markets, says Kristina Hooper, chief global market strategist at Invesco. ‘Our main concern is social unrest. If this scenario unfolds, I would not be surprised to see a sell-off in more risky assets.’