“On a typical day, one billion people around the world eat chocolate” – in “A taste of the future”, KPMG June 2014 Financial news has recently been dominated by the epic crash that is haunting the oil market. What at first seemed like good news for consumers is now turning into a nightmare from which…
Last week, The Danmarks Nationalbank increased its deposit rate by 10 basis points in a move towards policy normalisation, particularly in regard to interest rate spreads against the ECB. In terms of the Danish economy, this move means almost nothing because short-term interest rates will continue to move within the negative interest rate policy (NIRP)…
2015 was a particularly tough year for British equities. At the beginning of the second quarter everything was gaining traction with the FTSE 100 index rising 8.5pc and recording a multi-year high at 7,122.74; but then things soured and the index was caught in a huge descent that stole 1,250 points from that level. With…
We are now celebrating the third year of Abenomics in Japan. After being in a dormant state for more than twenty years, the Japanese economy was in need of someone that could revitalise it through shock and awe. Shinzo Abe promised what others didn’t and quickly ascended as Prime Minister to unfold a three arrow…
Just a few years ago Brazil, Russia, India, China, and South Africa, the so-called BRICS were a top performing block among the emerging markets class, such that they deserved to be treated separately from the others. But the recent international developments have shown that this group is far from being homogeneous, as its constituents are…
As seen in this month’s Master Investor Magazine. Property prices have been on the uptack during recent years and have accelerated over the last few in particular. An apartment in the most expensive area of London averages an astounding £11,600 per square metre while the average for the whole London region is still a respectable…
With the FED hiking its key benchmark rate one should expect interest rates to start rising across the yield curve. Liquidity conditions will tighten and the FED’s balance sheet is going to shrink as well. Hmmm, not so fast! The FED has two trillion problems still to solve, as its monetary policy framework is years…
So, they finally did it! The FED has just announced the first rate hike in almost a decade. Investors have reacted very positively so far… but will the enthusiasm last? There’s no fundamental reason to think it will, as the risks that accumulated during the ZIRP-era will now weigh on the US economy. Yesterday, Janet…
It would seem that the Saudis want everyone to go bust in their attempt to tear down the shale oil revolution, only to push oil prices back up again in future. But do they still have control of this market? Judging by the persistent weakness observed in the market, it seems that everything is falling…
Yesterday, the ECB extended its QE programme until March 2017, cut its deposit rate to -0.30pc and extended its asset purchases to municipal bonds. But with the market expecting an expansion of monthly purchases of around €15 billion and deposit rates to be cut by at least 20 bps, the policy announcement seems more like…
