Slow food for thought

Insights and research on global events shaping the markets

With the dollar soaring and inflation rates reaching record levels, we may have entered a new era where countries seek to strengthen their currencies rather than weaken them.

For many green bond issuers, the only future lies in the sustainable economy. They are setting their sights on achieving the global net zero target for 2050 by 2040 or even earlier.

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12/07/2022

High inflation has precipitated a slowdown in developed economies’ growth, with Europe facing the highest risk of stagflation due to the ongoing energy crisis. Central banks face a dilemma of high inflation and slowing growth, but remain on the hawkish side for the time being. The ECB is probably facing the most complex situation. While fiscal intervention might come to the rescue in order to cushion the blow from rising energy prices, political uncertainty is high as we enter the second half of the year: US mid-term elections, shockwaves in Europe from the war in Ukraine and sanctions on Russia, elections in India and Brazil are likely to keep financial markets' volatility at high levels.

One man's loss is another man's gain. While petrol prices are skyrocketing, oil companies are generating nearly five times more profit from refining than a year ago. We offer an explanation.

The BOJ (Bank of Japan) will become the first central bank in history to hold more than 50% of its country's public debt securities. This is an unprecedented situation with some key risks attached to it.

With the imminent launch of ‘Apple Pay Later’, the American giant continues to expand its financial services offering. To the point of soon becoming a bank?

Economic growth is likely to remain positive during the second half of the year, supported by the reopening of the Chinese economy.

Central banks have to re-learn to live with inflationary pressures and to normalize their monetary policy. Households are concerned by a decline of their real purchasing power, but healthy consumption levels can hold as long as unemployment remains low and wages increase. Businesses are seeing their profitability threatened by rising input costs. The trajectory of inflation in the months ahead will be a key variable of the economic environment.

With monetary policies tightening, speculative bubbles are bursting one after the other. SPACs are no exception.

Boosted by soaring crude oil prices, Saudi Aramco recently overtook Apple as the world's largest market capitalisation.

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