I am optimistic about China’s medium-term economic prospects, within the context of gradually slower year-over-year growth rates. This optimism is based largely on the continuing evolution of government policy designed to embrace private enterprise and markets. My biggest concern is that there has been little parallel evolution in China’s governance and institutions. China’s economy and […]
The People’s Bank of China announced that it’s opening up its financial markets to foreign investors in several new and quite granular ways. Among the developments, China is allowing foreign-funded institutions to conduct credit rating business on assets in the country’s inter-bank and exchange bond markets. Andrew Mattock, a portfolio manager at Matthews Asia, recalls […]
While there are signals that the global economy is slowing down, it doesn’t appear to be quite at recession levels. “That has major investment implications,” said Alec Young, managing director of global markets research at FTSE Russell, in a webinar on Wednesday. Trade uncertainty is a big part of recent sluggishness in markets, he said. […]
Global protectionism appears to be here for the long game. While investors may not want to start playing defence just yet, it might be time to start practicing again. In it’s mid-year outlook, the BlackRock Investment Institute noted risk reduction, including elevating the levels of cash in a portfolio, would be a prudent measure given the […]
As talks of U.S.-China trade tensions dominate headlines, many investors are keeping a close watch. On June 29, 2019, U.S. President Donald Trump and Chinese leader Xi Jinping met on the margins of the G20 in Japan. What really stood out from the meeting is that an agreement was reached to resume trade negotiations, says […]
Looking back at the first half of 2019, bond and equity markets seem to be telling opposing stories, according to T.Rowe Price’s mid-year market outlook. Strong gains in equity markets in the U.S. and certain emerging regions would appear to suggest a renewed confidence in earnings for the year to come, the report said. Meanwhile, […]
A thick fog is clouding institutional investors’ efforts to gain clarity on the global market outlook, but certain key themes are peeking through, according to Manulife Investment Management’s mid-year report. Geopolitical unrest continues to be a cause for concern, the report noted. The escalation of trade tensions between the U.S. and China could point to a […]
While trade risk continues to plague global economies, India and China are expected to be major emerging market growth drivers, according to State Street Global Advisors’ mid-year global outlook report. If trade relations between the the U.S. and China improve, it could lead to a recovery in emerging markets overall, the report said. Both sides […]
With political risk a constant in emerging markets, a quiet year for institutional investors playing in the space doesn’t really exist. “The noise can be triggered by geopolitical shifts, by social tensions or elections,” said Graham Stock emerging market senior sovereign strategist at BlueBay Asset Management, a division of RBC Global Asset Management, during a webinar on […]
The Canada Pension Plan Investment Board is facing pressure to divest from companies allegedly tied to human rights abuses in China. “I have constituents of mine who’ve come to see me over the past few weeks because they have family members who have been interned,” said Conservative MP Tom Kmiec at the House of Commons finance […]