Monthly Archives:

September 2018

Panoramic Weekly – World to US, China: Let them eat trade

While the US and China continued their ongoing mutual trade threats and stand-offs, other nations’ assets rallied on hopes that the trade wars will open opportunity for third parties. Indeed, and as seen below, Asian, African and European exports to China are on the rise, while those from the US are increasing at a slower pace. The potential negative effects of the trade wars, as well as protra…

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Author interview – Adam Tooze: Rewriting the Global Financial Crisis

Ten years after the outbreak of the Global Financial Crisis (GFC) it is time to pause and reflect about an event whose consequences still have a major impact on financial markets and people’s daily lives. In his book “Crashed: How a decade of financial crisis changed the world,” UK economist and Columbia University professor Adam Tooze challenges the way the GFC has been storified, points at so…

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BVTV: What could go right for European banks?

Veronique Chapplow and Ed Booth

Ten years after the collapse of Lehman Brothers, US banks have gone from strength to strength whilst European banks have been losing ground and are trapped with low returns. Ed Booth, banking analyst at M&G’s equities team, talks to Investment Specialist Veronique Chapplow to discuss why US banks have become attractive earnings compounders and why their European …

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US & UK Inflation: Goldilocks and the bear?

After a decade dominated by extraordinary monetary stimulus that has kept interest rates and consumer prices at bay, the dog that didn’t bark is finally showing signs of life: inflation. As seen on the chart, both US and UK wage inflation have spiked in a tightening labour market – an old textbook recipe for further price increases to come. However, one has to look beyond the headlines to depic…

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Letter from Washington DC. The IMF’s Sovereign Debt Conference.

The IMF recently held a two-day public conference on sovereign debt at its home in Washington DC. How do we measure it? How have governments reduced it in the past, for example in the periods after the two World Wars? How can Japan carry debts of over 200% of GDP while other sovereigns have defaulted with virtually no public debt? And when things do go wrong, how do we sort out the mess of a re…

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Panoramic Weekly: Ignoring Trump

Most global fixed income asset classes gained over the past five trading days, despite an escalation of the ongoing US-China trade war and the inclusion of new tariffs between the world’s two largest economies. Reduced trade, however, may bring more harm than good to the US economy, as levies usually generate inflation and, therefore, higher rates. Indeed, the benchmark US 10-year Treasury yiel…

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Brazil’s election: What’s at stake?

Global investors are paying special attention to the forthcoming general election in Brazil, not only because the country is the world’s eighth-largest economy, ahead of Italy and Canada, but also because in these turbulent times for Emerging Markets (EMs), an unexpected or market-unfriendly outcome could bring more volatility to the entire asset class. After the recent sell-offs in Turkey and …

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BVTV: 10 years after Lehman, still holding on?

Last Saturday marked exactly 10 years since Lehman Brothers went bust. Are we still suffering the consequences of the Global Financial Crisis that followed? Had the crisis not occurred, would we have today’s political uncertainty? Watch M&G fund manager Wolfgang Bauer and Investment Director Ana Gil discuss how the clash between growth and political risk are driving markets today, and what oppo…

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Panoramic Weekly: 2008-2018: Don’t look back in anger

Few people would have guessed right after the collapse of Lehman Brothers, ten years ago this week, that a golden decade for bond investors laid ahead – but it has happened: as many as 92 of the 100 fixed income asset classes tracked by Panoramic Weekly have delivered positive returns, with 17 of them offering triple-digit returns. The 2008 crisis’ most-battered asset classes, such as High Yiel…

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BVTV: Are Europe’s credit markets reflecting Italy’s budget woes?

While investors and the world media focus on Emerging Markets such as Turkey, Brazil and Argentina, Italy’s borrowing costs have been rising to levels not seen since the European sovereign debt crisis. Is this 2011 again? Are Europe’s credit markets reflecting the tensions between Rome and Brussels officials over the country’s deficit? Watch some insights from M&G investment specialist Pilar Ar…

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