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Trade wars : uncertainty is heightened again for investors

Kim Catechis, Head of Global Emerging Markets, Martin Currie (a Legg Mason affiliate) Kim Catechis Last week, President Trump said via Twitter that the US will increase tariff rates on $200 billion in imports from China to 25%, from the 10% rate currently. His tweets said the increase in tariff...

China: Why imports outperformed exports

Exports contracted 2.7% year-on-year in April while imports enjoyed a rise of 4.0% YoY. These numbers reflect the negative outlook for smart devices and automobile sales globally, and at the same show that China is importing more crude oil for domestic use Weak exports reflect structural change...

Private equity investment in Europe hits new record

Private equity investment in European companies reached a new record of €80.6 billion in 2018, a 7% year-on-year increase, according to data released today by Invest Europe. Private equity funds invested in over 7,800 companies, also a new record, with 86% of the total made up by small and medium-si...

South Africa’s 25th democratic elections highlight the countries continued inequality

Naomi Waistell, emerging market equity portfolio manager at Newton Investment Management “On 8 May, South Africa will vote in national elections which mark 25 years of democracy. The ruling ANC party which led the march to freedom have governed the country ever since and are widely expected...

Political uncertainty to create short-term instability for Spanish bond spreads

By Paul Brain, Head of Fixed Income at Newton Investment Management “This month Spain will hold its third general election in less than three and a half years. The polls suggest votes could be split between the existing left/right parties and the new right-wing challenger Vox. Once again it a...

Investor Confidence Rose in April by 1.7 Points to 72.9

State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for April 2019. The Global Investor Confidence Index increased to 72.9 up 1.7 points from March’s revised reading of 71.2. Confidence among North American investors imrpoved, with the Nor...

Stock options for dummies

Golden rules for option investorsThe investing in stock options from listed companies is very popular, mostly in Western Europe and the US. Many historians state that the invention of options was done in Amsterdam (the Netherlands). Stories go that the options were invented early 1800 when the Weste...

Could deposit tiering lead to more bank M&A?

For monetary policy to succeed, you need a health and integrated banking system. Europe has neither. That is why it is important not to consider the ECB’s potential plan to introduce tiering on deposits in the context of a new cheap long term financing program for banks (TLTRO-III) and potentially...

Schroders: too many uncertainties now because of Brexit

Azad Zangana This week’s Brexit votes: Brexit vote night no.1 - withdrawal agreement: On Tuesday night, MPs voted down Theresa May’s withdrawal agreement – the second defeat. The 149 majority (391 vs 242) was greater than had been expected – but significantly narrower than the 230 majority in the p...

MainFirst keeps prefering cyclical companies

What is your view on the relationship between bottom-up and top-down approaches, as markets become more international? Olgerd Eichler For our funds, we apply a bottom-up approach to identify potential outperformers regardless of any specific sector view. In a second step, we do a countercheck...