Fed emergency measures 'a defining moment'
The decision of the US Federal Reserve to cut interest rates once more and restart QE was expected by investors. But not on a Sunday afternoon. Asset managers characterise the sudden decision as ‘a defining moment’, for more than one reason.
Brexit boosts Luxembourg insurance market
A 44.5% increase in premium income in Luxembourg’s insurance sector last year was driven mainly by Brexit relocations in the non-life sector. However the traditional mainstay for the industry, life insurance, also enjoyed a strong year with income up 18.6%.
Coronavirus crisis: all eyes on the ECB
The Fed and the Bank of England responded to the coronavirus fall-out with emergency rate cuts of 50 basis points. Now, all eyes are on the ECB.
UBS AM: How to protect your portfolio for rising market volatility?
Reduce correlations in your portfolio
'Interest rate cut mostly helps to reduce volatility'
The Fed’s rate cut was not the most clear-cut answer to the corona crisis, says Hendrik Tuch, head of fixed income at Aegon Asset Management.
But he understands the decision.
AXA IM: Why gender diversity could be a corporate requirement in future
It is largely accepted that gender diversity in business equates to good corporate governance – but we believe that for investors, it is fast becoming a corporate requirement. Here’s why.
Fed rate cut fails to convince investors
Investors did not respond to the Fed’s surprise 50 basis points rate cut with a relief rally. To the contrary, markets closed almost 3% lower as investors interpreted the rate cut as a warning the macroeconomic situation is likely to worsen.
Fed president Jerome Powell stated shortly after Wall Street opened that the negative effects of the coronavirus are slowly becoming visible.
Asset managers weigh coronavirus impact
The coronavirus is causing ‘a clear shock to the world economy’, according to Columbia Threadneedle. Janus Henderson calls the global spreading of the coronavirus ‘a real game changer that has dashed hopes of a V-shaped recovery in global growth.’
‘So far we are seeing two clear consequences: lower consumption and less supply,’ says Neil Robson of Columbia Threadneedle. He illustrates the first concern citing the Adidas market update last week, showing a 85% decline in activity in China.
Capital Group : Coronavirus rattles markets, what's next for global growth?
Key takeaways:
1. Supply chain disruptions may take longer to iron out
2. China’s economic recovery likely to be prolonged and uneven
3. Certain internet platforms in China seeing demand amid shutdown
Schroders: Have investors missed the real revolution in electric vehicles?
Investors are focused on an anticipated boom in electric cars. The true acceleration in demand is happening elsewhere.