News & Insights

Economic & Market Overview - September

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GlobalEquity markets around the globe had a tough August against a backdrop of economic and socio-political news flow, which reflected slowing global trade, as well as uncertainty with regards to political policy. According to Tantalum Capital, the G7-summit provided few noteworthy developments, other than a chance for President Trump to further his “America First” agenda. The US-China “eye for an eye” trade conflict did not do investors (other than those holding US Treasuries and gold) any favours. Despite some attempts by the Trump administration to allude that a deal is still possible, the...

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Economic & Market Overview - August

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Global At the end of July, the US Federal Reserve has cut interest rates for the first time in more than a decade and signalled its readiness to provide more support as growth slows in the world’s largest economy. In a move that may have been influenced by political pressure, the US central bank cut its key benchmark interest rate by a quarter of a percentage point, to a range of 2% from 2.25%. This is the first reduction in borrowing costs since immediately after the financial crisis a decade ago. In his statement, the Fed chairman, Jerome Powell, indicated that it was weak global growth and...

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Economic and market overview - July 2019

Global The US-China trade war dominated global news in June as Presidents Trump and Xi continued to spar around trade tariffs and company sanctions. At the G20 Summit that took place in Japan during the last weekend of the month, the two statesmen agreed to resume trade talks. According to BBC News, this eased a long row that has now contributed to a slowdown in the global economy. Mr Trump said he would allow US companies to continue to sell to the Chinese tech giant Huawei, in a move seen as a significant concession. He also confirmed that the US would not be adding tariffs on $300bn worth...

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Economic & Market Overview - June

Global The trade war between the United States and China took a turn for the worst when President Trump announced an increase (from 10% to 25%) on $200bn worth of Chinese goods early in May. There are a few other geo-political matters that are causing market participants to be jittery, but the US-China relations remain the biggest contributor to the recent increase in market volatility. According to BCA Research, political developments ahead of the 2020 US Presidential election are also adding to uncertainty in the investment outlook. The Democratic Primary race will heat up in June and President...

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Economic & Market Overview - May

Global According to the latest International Monetary Fund (IMF) bi-annual World Economic Outlook, the strong global economic expansion of 2017 and 2018 slowed notably in the second half of last year. It reflects a confluence of factors affecting the major economies around the world. China’s growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The Euro area economy lost more momentum than expected as consumer and business confidence weakened and car production in Germany was disrupted by the...

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Economic & Market Overview - April

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Global Despite the dim message from current economic data, particularly in Europe, and the recent inversion of the short end of the US Treasury curve, global growth is likely to reaccelerate in the second half of 2019, according to a recent report from BCA Research. Their analysis of global indicators shows that leading industrial, sentiment and even some trade indicators have troughed. Credit growth, a key lubricant of growth momentum in the globally relevant sectors of China’s economy, is no longer decelerating, and is poised to boost global trade in the second half of the year.  Speaking...

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