Five reasons European markets could beat the US in 2016

The US market has been a great place to invest since the financial crisis began in 2008. It has  outperformed Europe in six of the past eight years. From 1st Jan 2008 until now, the European market is up just 17.39% compared with a rise of 107.9% in the US. A remarkable difference. However, the […]

23 December 2015 by Darius McDermott

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The era of zero US rates is over. Eventually markets will once again determine the price of capital

US rates are up by a staggeringly small 25 basis points (bps). There is more to come. Economists will try to outdo each other on the number and the timing, but the big message is that the era of zero US rates is over. It might be too early to say that the era of […]

23 December 2015 by Chris Iggo

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A flailing rand could help South Africa’s ailing mining firms

Rand awareness – the worlds of business and economics have a way of working themselves out says the Value Perspective’s Andrew Lyddon South African president Jacob Zuma’s newfound zeal for getting through finance ministers – somewhat reminiscent of the enthusiasm with which a child might address their stocking on Christmas morning – along with the […]

22 December 2015 by The Value Perspective

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The use of high yield debt to fund shale oil was a classic misallocation of capital following QE

Running into year-end most activity is position squaring and short covering rather than initiation of active positions. The FOMC on Wednesday is the peg on which to hang this week’s activities, much as last week reflected the unwind from the European Central Bank’s (ECB) actions. The rally in the euro probably told us more about […]

14 December 2015 by Mark Tinker

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Is income protection really an expensive employee benefit?

As I have mentioned in a previous column, I am a big fan of Group Income Protection (GIP) as a key employee benefit.  Yet this important insurance struggles to get the political patronage and media coverage that it really should merit. So I was delighted to see GIP included in a recent report published by […]

10 December 2015 by Steve Herbert

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ECB reaction: Draghi overpromised

The ECB badly mishandled its communications strategy in the run-up to today’s meeting, with comments from President Draghi and leaks about 20 different easing measures being under consideration encouraging market expectations of much more aggressive action than the announced 10 basis point cut in the deposit rate and six-month extension of QE at an unchanged […]

6 December 2015 by Simon Ward

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UK money trends upbeat, corporate liquidity surging

Key UK money and credit measures continued to grow solidly in October, sending a positive message for economic prospects and supporting the case for an early rate rise. The Bank of England’s broad money measure, M4ex, rose by 0.4% in October, pushing annual growth up to 4.5%, the fastest since January – see first chart. […]

2 December 2015 by Simon Ward

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It is Europe not China that is seeking “currency depreciation to stimulate the economy”

Thanksgiving last week made for a shortened trading session and most books were positioned ‘flat’. What the US refers to as the ‘holiday season’ is now underway and excepting some likely activity around the options expiry on December 18th, it would be sensible to expect declining volumes from now into year end. This is likely […]

30 November 2015 by Mark Tinker

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Big deal – Why the Pfizer/Allergan mega-merger is a mega-warning for investors

By Andrew Evans $160bn (£106bn) deal between US drugs giants Pfizer and Allergan weighs in at number three on the all-time list of mega-mergers. For its part, the proposed tie-up between the, ahem, ‘beerhemoths’ AB InBev and SABMiller will rank fourth on that list. Is this all a sign of the times? Here on The […]

29 November 2015 by Marco

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