Concerns have shifted to the potential for corporate profits to be undermined if a trade war erupts with China announcing a new round of tariffs on US products.
Volatility returned in February, but not the kind of volatility we have been used to for much of the period since the financial crisis.
With new Fed Chair Jerome Powell now in the hot seat, bond investors are keen to understand whether he will be more hawkish than his predecessor, Janet Yellen. Turning to the UK, the market is now pricing in a high probability that the Monetary Policy Committee hikes interest rates in May, but the flattening of the gilt curve may suggest the market doesn’t entirely share the Bank of England’s optimism on the UK economy.
March 22nd was World Water Day which aims to focus attention on the importance of water not only in our daily lives, but also for the sustainable development of the global economy.
Toys “R” Us announced last week that it has so far failed to find a buyer or reach a debt restructuring deal, raising the prospect of widespread store closures and job losses. While a rescue package could yet emerge, the future is looking far from rosy for the toy store.
The United States government routinely finances itself through short-term debt, which is normally less expensive than long-term debt, due to the upward sloping nature of the U.S. yield curve. This cost saving does increase the risk of default. Rollover risk arises any time short-term debt is used to finance long-term spending. It is what keeps debt management officials up at night.
In this month’s update Ritu Vohora, M&G's Investment Director, examines the implications of February’s spike in market volatility. The bull market is likely still intact, but we are entering choppier waters.
President Trump has sent shockwaves through the global business community with his decision to impose tariffs on steel and aluminium imports to the US. Randeep Somel, deputy fund manager in M&G’s equities team, joined Nicolo Carpaneda this morning to discuss.
After performance weakness in the immediate aftermath of the Brexit referendum, UK property delivered a strong return in 2017. In the first of two guest posts looking at the property environment in different parts of the world, Tony Brown, CIO of M&G Real Estate, discusses where this leaves us in terms of the key themes in UK property in the period ahead, both from a cyclical and a longer term structural perspective.