In the second episode of our Cool Heads show, portfolio manager Alex Wright talks about how UK companies are faring amid Brexit uncertainty and the impact on corporate earnings, while Natalie Briggs looks at changes in EU-UK trade and supply chains.
The Fed has been an unwilling participant in the new round of race-to-the-bottom policy loosening by major central banks. But it is still likely to resort to a combination of rate cuts and balance sheet growth in response to rising recession risk. In the ensuing ‘bull steepener’ of the US treasury yield curve, credit investors should prepare for widening spreads that offer better entry points and increase their odds of producing excess returns.
The weekend drone attack on Saudi Arabia’s oil infrastructure has taken 5.7 million barrels per day of crude production - roughly 5 per cent of global supply - and 2 billion cubic feet of associated gas offline, the largest outage since the first Gulf War.
Having hiked nine times in the past four years, the Fed has just reversed course and, as expected, implemented a 25 bps rate cut. Although the US economy is still expanding at a relatively healthy pace, continued below-target inflation, a slump in business investment, and the prolonged presence of external uncertainties provided sufficient reason for a precautionary cut.
When smaller frontier markets put their financial houses in order and mature into benchmark names, early investors can earn attractive returns in these relatively niche, often overlooked places. Here we look at one example, Egypt.