Russian influence on Western markets

The Russian stock market remains cheap by Western standards, with people applying a Russian discount for the political risks. The market is dominated by the large oil and gas enterprises including Rosneft, Lukoil, Gazprom and Surgutneftegas, and has done well since 2014. Much of the gain has come from the rise in energy prices increasing … Continue reading “Russian influence on Western markets”

Trade wars should not derail growth

Markets worry about a trade war, and relax when they think it is about to be settled. Mr Trump’s attempts to negotiate new trading terms are often called a war but it’s actually a hard negotiation. The President threatens or imposes higher tariffs with a view to getting the other side to propose lower ones … Continue reading “Trade wars should not derail growth”

Commercial property gloom is unjustified

People involved in assessing the value of UK commercial property became very gloomy after the Brexit vote. They often marked valuations sharply lower, by 10% to 15%, only to discover there were plenty of buyers at new levels and no decent stock to sell. They argued there would be less space required, especially in central … Continue reading “Commercial property gloom is unjustified”

Genoa tragedy sets Italy on course for EU clash

The tragic loss of lives in Genoa when a large section of an elevated motorway collapsed is one of those dreadful events that should not have happened. We all feel for the families scarred by loss. It is a big event which is having a dramatic effect on Italian politics and government. This matters at … Continue reading “Genoa tragedy sets Italy on course for EU clash”

When you get to a trillion dollars that is serious money

The race has been on for some months to see which company can first reach a market value of $1 trillion. Apple was in the lead for most of the time, with Amazon and Alphabet in contention. Yesterday Apple hit the newsworthy level. It was a fitting achievement for a company that has come to … Continue reading “When you get to a trillion dollars that is serious money”

Is the trade war really all about the mid-term elections?

US President Donald Trump’s trade war could damage the global economy, but is he just playing politics? Steve Mnuchin did not hold any formal meetings with China at this weekend’s meeting of G20 finance ministers in Buenos Aires. This is despite the US Treasury Secretary indicating recently in Congress that he was prepared to reopen … Continue reading “Is the trade war really all about the mid-term elections?”

Why is this such a worried bull market?

Normally bull markets are full of people who are optimistic. They radiate enthusiasm for economies and shares. They hunt down markets or individual stocks that look cheap compared to the rest and recommend them. They recommend simply buying the global or local market to join in a general uplift in shares they expect. Eventually you … Continue reading “Why is this such a worried bull market?”

This bull market has relied on technology shares

This has been a long and unusually hesitant and worried bull market. Indeed, there have been a substantial number of sectors that have lived through their own bear markets whilst the overall indices push on to new highs. The US has outperformed the other advanced country equity markets and China easily over the twelve months, … Continue reading “This bull market has relied on technology shares”

Investors are hoping Trump is playing tactics

When equity markets were hitting new highs Donald Trump was taking all the credit. “The reason our stock market is so successful is because of me,” the President declared to journalists aboard Air Force One. But the problem with this attitude, as noted by Barack Obama’s former press secretary Jay Carney, is that if you … Continue reading “Investors are hoping Trump is playing tactics”

More trade disruption from US sanctions on Iran

There has been plenty of attention to the way the EU is caught in the crossfire of the US trade dispute with China. We also need to remember that the EU also stands to lose from the US wider dispute with Iran. The EU exported $10.8bn to Iran last year and is worried that US … Continue reading “More trade disruption from US sanctions on Iran”

Technology is central to these stock markets

When Nasdaq sneezes, world stock markets catch a cold. What began as a world share market correction based on worries about rising interest rates, soon became a series of fears about how much more technology stocks can achieve after a stellar performance in recent years. Facebook got into trouble for its business model and has … Continue reading “Technology is central to these stock markets”

Millennials will reshape the investment landscape

Millennials are the largest generation that have ever existed. They are expected to make up 75% of the global workforce by 2025 and the way they spend their money will define the world over the course of the next few decades. With half of the world’s population currently under the age of 30, the values … Continue reading “Millennials will reshape the investment landscape”

Can China get along with President Trump?

When President Trump met President Xi we were told the meeting went well. The two men recognised the power each held, and both had a reason to want a positive relationship. Mr Trump understood the influence China has over North Korea, and wanted help with sorting out the tensions over North Korea’s development of nuclear … Continue reading “Can China get along with President Trump?”

Investors dump equity in favour of safe havens

Government bonds received a boost in demand last month as investors’ risk appetite was tested by volatility in equity markets. This risk-off attitude proved negative for corporate bonds, however. The looming threat of a trade war between the US and China sent shockwaves throughout equity markets last month, as investors braced for the impact of … Continue reading “Investors dump equity in favour of safe havens”

UK investors to get direct access to some Chinese shares

News that the British and Chinese stock market will be directly linked is a positive for both countries. It proves China is opening up and it is, post-Brexit, a vote of confidence in the City of London. By the end of this year, there will be a direct link between the London Stock Exchange and … Continue reading “UK investors to get direct access to some Chinese shares”