Equities – Page 44
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White papersThere’s More Than Huawei To Find Conflict With China
Growing tensions with China could lead to decisive reactions from Donald Trump and now Boris Johnson. U.S. retail sales are expected to improve in June, and the ECB will likely be in wait-and-see mode to assess the monetary measures it has already taken.
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White papersImproving the Robustness of Trading Strategy Backtesting with Boltzmann Machines and Generative Adversarial Networks
In this article, we explore generative models in order to build a market generator. The underlying idea is to simulate artificial multi-dimensional financial time series, whose statistical properties are the same as those observed in the financial markets. In particular, these synthetic data must preserve the first four statistical moments (mean, standard deviation, skewness and kurtosis), the stochastic dependence between the different dimensions (copula structure) and across time (autocorrelation function).
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White papersRecord US Index Concentration Adds Hazards for Investors
US growth companies led the second-quarter rebound, fueled by the five largest technology and new media stocks, which now comprise more than a third of the Russell 1000 Growth Index (R1000G). Investors should be alert to the risks of high benchmark concentration.
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White papersLopsided Equity Rally Highlights Growing Market Risks
Global equities rebounded sharply in the second quarter, driven by massive stimulus efforts and progress in the fight against the coronavirus. But investors face new risks in the third quarter as companies and countries count the costs of the pandemic and cope with the threat of a second wave of contagion.
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White papersAsia ex-Japan Strategy Update: June 2020
The current economic environment is in many respects unprecedented. In the last century, perhaps with the exception of the world wars, almost all financial crises have been ‘financial’ in nature. Today’s crisis is different: it is not just about ownership or claims on assets, it is a public health crisis. When the coronavirus pandemic eventually recedes, what will a recovery in equities look like?
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White papersCore Matters - Has globalisation peaked?
Globalisation has always been a matter of controversy. In economic terms, it has been widely credited with a rise in productivity by exploiting gains of trade. It has also led to lower prices and more product variety for consumers. However, it is also seen as a driving force of de-industrialisation and rising inequality in Advanced Economies (AEs), while fostering a catch-up process in Emerging Markets (EMs).
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White papersOur preparations for the reform of LIBOR
LIBOR will continue giving way to replacement rates ahead of its retirement by the end of 2021. We will soon be familiar with SONIA in the UK, ESTR in Europe and SOFR in the US. Work continues across M&G and the industry to ensure as smooth a transition as possible to the new rates. This bank of Frequently Asked Questions aims to assist understanding of what’s happening, why it’s happening and how we expect it might affect investments.
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White papersEquity markets: All set for a jumpy summer?
Global equities continued to make gains in June, but less so than in April and May, and more chaotically. Investors remain concerned about a second wave of the COVID-19 pandemic. And although hard economic data has begun to point to a recovery, the recession has remained horribly deep.
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White papersProtecting biodiversity through sustainable land use
The global pandemic has highlighted the causal links between biodiversity loss and climate change, and the emergence of infectious diseases. In the third article in our pandemic series, Sonya Likhtman explores how deforestation and industrialised agriculture contribute to biodiversity loss, and why companies must ensure sustainable land use throughout their value chains.
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White papersGlobal Equities case study: how Zoetis is advancing animal health
Our Global Equity ESG strategy aims to invest in companies with a combination of time-tested fundamental and environmental, social and governance (ESG) characteristics that are attractively priced. This is well-illustrated through our exposure to current holding Zoetis.
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White papersTackling the climate crisis
Climate change is the defining challenge of our time and we are at a defining moment. As we navigate through the coronavirus and its impacts, we have an opportunity to shape the post-pandemic world so that confronting the climate emergency is an undisputed global priority.
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White papersCatalysing impact: how investors can fight climate change
Amid the dislocation of the coronavirus, it is easy to forget that just a few short months ago the debate about the climate crisis – and our collective response – was gaining momentum. In the first of two special climate-focused episodes of Fundamentals, we ask: is climate action taking a back seat to Covid-19? And what role can impact strategies play in tackling the most defining challenge of our time?
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White papersSamsung Electronics: driving the sustainability agenda in emerging markets
Our Global Equity ESG strategy aims to invest in companies with a combination of time-tested fundamental and environmental, social and governance (ESG) characteristics that are attractively priced. We believe that companies with a competitive advantage and sustainable business models are likely to offer visibility of earnings growth. This can be demonstrated through our exposure to South Korean consumer and industrial electronic equipment company, Samsung Electronics.
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White papersHKD: sailing through the turbulence
Caught in the struggle between Beijing and Washington, can Hong Kong pull through the hardship without special trade status? Is Trump’s announcement symbolic or destructive for the territory? Will the Hong Kong dollar peg fall apart? We review these questions one by one in this analysis.
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White papersBiden’s election momentum and financial markets
Joe Biden has a historically large lead over President Donald Trump in the polls, including in the critical electoral college vote, but that could narrow closer to the election.The slide in Trump’s approval rating was most noticeable among senior citizens and he has not led in a single major poll so far this year, though it should be noted that polls have proved unreliable in the past few elections. To put Biden’s lead in perspective, no prior candidate or President has seen a lead this large at this point of the race. However, Trump still holds onto slightly favourable ratings on the economy. A game changer could be the Democratic party taking control of the Senate, which appared unlikely early this year.
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White papersWill Europe Waste The Crisis?
Investors should be rooting for EU leaders as they attempt reforms that do more than just ease the immediate pain.
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White papersCrisis and resilience – Navigating a sustainable recovery
When we emerge from the pandemic, an important issue will be whether the collaboration and focus can be maintained and harnessed to address the climate crisis or other global issues.
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White papersWhy Aren’t Markets Tanking?
There’s a list of reasons that might make an investor squirm, but there may be change afoot they should watch closely.
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White papersThe day after #5 - New Frontiers for Central Banks
Central Banks (CBs) are by nature more flexible than governments. Thus, they have been the most proactive in this crisis, reintroducing large-scale asset-purchase programmes financed by money creation (QE policies). With this pandemic, a spectacular change in economic policy has taken place in just a few months: fiscal and monetary policies have become intertwined, and this is probably not reversible. While governments have become the buyers of last resort, CBs are playing their role as lenders of last resort. How far can they go? We argue here that CBs are still far from being out of ammunition. Financial repression and fiscal dominance are here to stay. CBs will maintain low bond yields for an extended period of time to alleviate the burden on the most leveraged agents.
