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Panoramic Weekly: Summer storm

An escalation of diplomatic tensions between the US and Turkey and Russia triggered a global fixed income sell-off that particularly hit Emerging Markets (EMs), and led to a safe-haven rush, with US Treasuries, Swiss and German bonds in heavy demand. The risk-off mode intensified towards the end of last week, when the Turkish lira plunged 18% in two days as a deadline for Turkey to release a US…

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Can Russia stomach new US sanctions?

After the summer break, the US Congress is scheduled to review various bills proposing additional sanctions on Russia. The proposals include additional restrictions on Russian imports and exports to the US, as well as on activities of Russian banks in the country. Under consideration there will also be a ban, for US citizens, to trade any newly-issued Russian sovereign debt with a maturity of m…

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How vulnerable are Emerging Markets to Trade Wars?

Emerging Markets Portfolio Manager Claudia Calich analyses the potential effects of an escalation of the US-China trade tensions on Emerging Markets. Despite the diplomatic rows and all the column inches written, Claudia discusses how popular products such as French wine and cheese will always find their way to the end consumer, no matter how many barriers along the way. Calich also explains wh…

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BVTV: Markets go cold turkey

Market sentiment turned risk-off last week, largely due to the new US sanctions on Russia, which destabilised the ruble, and with the worsening of the situation in Turkey, which sank the lira and hit European lenders to the country. What are these two crises telling us about the state of the global economy? Watch some insights from M&G fund manager Wolfgang Bauer.

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Risk-off is on

Renewed political tensions between the US and Turkey and Russia increased uncertainty and led to a currency sell-off in both countries. Traditional safe-haven assets, such as US Treasuries and the yen, rose. Are these crises telling us anything about the state of the global economy?

What is happening and why?

The Turkish lira and the Russian ruble plunged recently, following an escalation of di…

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Panoramic Weekly – Trade war survivors: High Yield, FRNs

Despite a battery of central bank meetings, which left things more or less where they were – read: supportive of economic growth – global bond markets suffered from the ongoing trade wars, from rising oil prices and also as US data remained unconvincing, dragging down inflation expectations. Only about one quarter of the 100 fixed income asset classes followed by Panoramic Weekly posted positiv…

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BVTV: What could derail the momentum for US stocks?

Despite investor doubts about its prospects at the end of last year, the US stockmarket has led global equities so far in 2018. What could derail this momentum? And what are the potential effects of tariffs on US stocks? John Weavers, a fund manager in M&G’s equities team joins us to discuss what the impact might be and what could happen going forward to those exposed to China.

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BofE: The unreliable boyfriend finally comes through with the chocolates

The Bank of England unanimously raised its benchmark interest rate by 25 basis points to 0.75% – are gilts still an attractive investment opportunity? Are rising rates the main challenge to UK government and corporate bonds? Has Brexit risk been priced in?

Is the Bank of England right to raise rates?

The unreliable boyfriend finally came through with the chocolates – after months of going back …

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Panoramic Weekly: EMs 1 – Trump 0

Despite US president Trump’s plans to build walls between countries and impose barriers to global trade, the asset class which was once seen as the most vulnerable to his policies not only has emerged victorious in July – but also since he won in Nov. 2016: Emerging Markets (EM) fill 9 of the 10 best-performing fixed income asset classes in July, as their improving fundamentals and recent sell-…

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