The investment trends accelerated by Covid-19

The Covid-19 outbreak is likely to change the way we think, work and live. It is accelerating trends that were already in place and changing people’s behaviour. All of this has implications for investors. Here we look at some of the long-term consequence of the ongoing pandemic. Creating jobs by de-carbonising the economy Creating jobs … Continue reading “The investment trends accelerated by Covid-19”

Five key investor questions on China answered

Amid the Covid-19 pandemic, our team considers the relative prospects for China’s economic recovery and stock market resurgence. What the pandemic has highlighted is large differences in state capacity to manage this crisis. Will China experience a ‘V-shaped’ economic recovery? We are still at the beginning of an enormous economic and social repair job. Governments … Continue reading “Five key investor questions on China answered”

Government borrowing is large but not yet a problem

Advanced country governments have found it easy to increase their borrowings at very low interest rates, but they can’t make a habit of borrowing such large sums. Over the last three months, most governments have greatly increased their spending and suffered a major decline in tax revenues. There was always going to be a large … Continue reading “Government borrowing is large but not yet a problem”

The uncomfortable truth about climate change and investment returns

Investors can no longer ignore climate change. Long gone are the days of debating whether it even exists; climate change is here and it’s going to have a major impact on the way we live. It’s also already having a major impact on how we invest. That’s why by the end of 2020 we will … Continue reading “The uncomfortable truth about climate change and investment returns”

The end of the beginning, not the beginning of the end

It is becoming clear that the global recovery from the COVID-19 recession began in May. Widespread, albeit still incomplete, success in slowing the spread of the virus has prompted most governments to begin easing lockdowns over recent weeks, following China’s earlier lead. That has led to broad-based improvements in business and consumer confidence, alternative indicators … Continue reading “The end of the beginning, not the beginning of the end”

Can international tourism ever recover?

Travel restrictions are slowly being lifted, but most people are more likely to be jumping into their cars to go on holiday than onto an aircraft. So, can international tourism ever recover? And might the slump force some countries to reorder their economic priorities? Lessons from previous crises The UNWTO (United Nations World Tourism Organization) … Continue reading “Can international tourism ever recover?”

Central banks continue to prop-up markets

The tsunami of money has been unprecedented and is the main reason equity markets have performed as they have. The stimulus measures have been at their largest in the US, where money growth has shot up to 25% for the year. In the Eurozone and the UK, it is a lively but more modest 10%. … Continue reading “Central banks continue to prop-up markets”

How smart manufacturing could lead to an industrial renaissance

The history of industry is one of constant innovation. The industrial revolution that began in the late 1700s was enabled by the advent of water and steam power. This allowed the start of mechanical production. Then, electric power and assembly lines heralded the era of mass production in the early 20th century. The late 20th … Continue reading “How smart manufacturing could lead to an industrial renaissance”

The beneficiaries of globalisation are right to be worried

The dispute between China and the US is likely to continue for many years as their clash of ideologies changes global trading patterns and supply chains. A senior American politician publicly derided one of the most important British companies on a scale we have not seen since attacks on BP following its oil spill in … Continue reading “The beneficiaries of globalisation are right to be worried”

Asia after the storm

The world has been battered by the coronavirus pandemic this year. Most economic activity was suspended as many of us spent our days confined to our homes. The Asia Pacific region will not escape unscathed. Decades of globalisation ensures that we are all in this together, regardless of where one lives, and whether one likes … Continue reading “Asia after the storm”

Battling the pandemic speeds up business changes

Before the pandemic struck, high streets were already under pressure, the digital revolution was gathering pace and green change dominated the agendas of European governments. Global trade was under attack and a new Cold War was brewing between China and the US. On the high streets many shops and retail chains were struggling. High rents, … Continue reading “Battling the pandemic speeds up business changes”

Is retail investor surge cause for caution?

With a combination of resurgent markets, seemingly ebullient retail investors and a bleak economic outlook, it may be prudent to tread carefully. It’s an old investment cliché that when your taxi driver starts giving you share tips, it’s time to sell. As someone who has been on the receiving end of cabbie investment advice during … Continue reading “Is retail investor surge cause for caution?”

Washington wants to halt US investment in Chinese companies

The controversy over the initial stages of the Covid-19 infection in China has allowed a raft of measures to be put on the table to ensure the superpower advantage remains with the US.  Washington wants to starve Chinese companies of money, with investors required to consider “America first”. In a speech given in the White … Continue reading “Washington wants to halt US investment in Chinese companies”

Why do markets rise even when the outlook is bleak?

The global economy is on track for its worst recession in nearly 100 years, yet April was the market’s best monthly performance in three decades and they continued to rise in May. Why?  The first quarter of 2020 has been tough for the global economy in the midst of the coronavirus pandemic. For example, a … Continue reading “Why do markets rise even when the outlook is bleak?”

China drives into global trouble

China may discover that more countries in the world now intend to stand up to Beijing’s actions, as the US finds a rare political unity in opposing its actions from technology to Hong Kong. In an ironic twist to the global story, China has relaxed its economy more and is making better progress with its … Continue reading “China drives into global trouble”