Sep 19, 2017
In his first speech at the UN yesterday, US President Donald Trump pleaded for billions of savings in the world organization, which he had already described as an "underperformer" during his election campaign. Meanwhile US Secretary of State Rex Tillerson said that the USA could re-engage in the Paris climate deal after the initial refusal to participate. China and the EU are going ahead in the battle against global warming and are increasing their efforts for a coordinated mutual approach.
Sep 18, 2017
Asian shares reached decade highs on Monday following a record-breaking Wall Street session, while the yen declined. MSCI’s broadest index of Asia-Pacific shares outside Japan rose +0.9% to reach the highest level since 2007. This week US Federal Reserve chair Janet Yellen is expected to announce the start of the US central bank's effort to winnow its USD 4.5trn portfolio while leaving rates unchanged.
Sep 15, 2017
Although the military threat of North Korea persists and is again in the center of attention after the new missile flight over Japan this night, the markets are decreasingly impressed by the saber-rattling. The short-lived reaction shows how investors become accustomed to the frequent provocations and diplomatic measures. The Nikkei index is up +0.6% today.
Sep 14, 2017
On the eve of the opening of the 67. International Motor Show (IAA) many European carmakers announced plans to accelerate their shift to electric cars, after the diesel scandal started to unfold two years ago and battery technology was significantly improved. On Wednesday the EU car industry lobby offered to further cut CO2 emissions. EU auto suppliers, on the other hand, warn that the focus on electric cars risks handing jobs to China.
Sep 13, 2017
Simmering tensions have risen to the fore recently, ranging from the political deadlock in the US to the conflict involving North Korea. However, market disruptions triggered by political crises have historically proven temporary, while the current cyclical trends keep pointing to a solid global economy. We thus continue to favor growth over income assets.