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”

US profits: will they bounce back as quickly as investors think?

US earnings season is always a spectacle and this time around is no different. Well, no different but for one exceptional factor: Covid-19, and its effects on company profits. The businesses that make up the S&P 500 Index have started to tell us how they performed from January to March, a period of unprecedented operating … Continue reading “US profits: will they bounce back as quickly as investors think?”

The moral hazard of crisis intervention

US markets closed up 12% in the shortened pre-Easter week as new coronavirus case growth fell globally and an undercurrent of monetary and fiscal support helped keep sentiment buoyant. Many global markets have now entered ‘bull market’ territory. Nonetheless, European markets remain 20-25% off their 01 January levels, so you’d be forgiven for not feeling … Continue reading “The moral hazard of crisis intervention”

US Senate reaches agreement to a $2 trillion fiscal stimulus package

As expected, the US Senate reached agreement between the parties to a $2 trillion fiscal stimulus package yesterday, which gave the markets a big boost. Democrats allowed substantial funds to be available for business through a $500bn fund for industries, cities and states, with a $367bn loan programme for small business. They also accepted the … Continue reading “US Senate reaches agreement to a $2 trillion fiscal stimulus package”

The biggest winner from coronavirus is Donald Trump

It should come as a surprise to no-one that the figures from China about coronavirus infections and deaths have been massaged to make them look better. As the crisis in Xi Jinping’s government from his mishandling of the situation mounts, the biggest winner is now becoming clear. It’s looking more and more likely that Donald … Continue reading “The biggest winner from coronavirus is Donald Trump”

Looking back at the markets through January

A selection of articles looking back through the markets last month. Global Market Review Coronavirus hits investor sentiment Investor sentiment was initially buoyed in January as the US and China signed their interim trade deal, driving US share indices to new all-time highs. However, major global equity markets ultimately ended the month in negative territory … Continue reading “Looking back at the markets through January”

The US-EU economic battle

Donald Trump spoke out at Davos, condemning the people he called the “perennial prophets of doom” for forecasting climate and other disasters. He said they “are the heirs of yesterday’s foolish fortune tellers. They want us to do badly”. He did not name the EU or individual European countries, but the implication was clear. His … Continue reading “The US-EU economic battle”

How good is the US-China trade deal?

When the world’s two largest economies and powers sit down to talk, the world waits to learn what they have agreed. The document signed by the US and China this week is an unusual international agreement, as it has no reference to independent arbitration and little external reference to world bodies, mentioning the IMF on … Continue reading “How good is the US-China trade deal?”

Looking back at the markets through December

A selection of articles looking back through the markets last month. Global Market Review Double-digit gains in 2019 Despite a year that was filled with political and social upheaval – from the trade war between the US and China, through Brexit, to the civil unrest in Hong Kong – many world markets achieved double-digit gains … Continue reading “Looking back at the markets through December”

Looking back at Global markets in November

Global Market Review Brexit takes a back seat Although politics continued to dominate newsflow and sentiment in the UK during November, Brexit was superseded by the General Election as the focal point. As the different parties set out their manifestos, Brexit took a back seat as the focus of the different party leaders shifted to … Continue reading “Looking back at Global markets in November”

Looking back at the markets through October

A selection of articles looking back through the markets last month. Global Market Review Election fever October saw the UK plunge into election fever as progress on Brexit once again ground to a halt. Although Prime Minister Boris Johnson managed to reach a new Brexit Withdrawal Agreement with the EU , he failed to win … Continue reading “Looking back at the markets through October”

The impact of US foreign policy on markets

Trade restrictions and tariffs are the main response of the Trump administration to foreign disagreements, but there are some positives too. Donald Trump moves markets. He watches them regularly and tries to influence them by what he says and what he does. He sees a rising US share market as proof that he is making … Continue reading “The impact of US foreign policy on markets”

Looking back at the markets through September

A selection of articles looking back through the markets last month. Global Market Review What next for Brexit? The long-running Brexit saga took a new twist in September as the clock continued to tick towards its Hallowe’en deadline. After being suspended earlier in the month, the UK Parliament was hastily reconvened towards the end of … Continue reading “Looking back at the markets through September”

How does geopolitics impact investment returns and what can you do about it?

Schroder’s economists have analysed the effect geopolitical risk can have on investors’ portfolios. Should investors simply hold their nerve during volatile times? Or is it better to entrust fund managers able to take a more dynamic approach? Geopolitics can significantly impact investment returns; whether it’s trade wars, actual wars, populist politicians or terrorist attacks. Geopolitical … Continue reading “How does geopolitics impact investment returns and what can you do about it?”