Banco Bilbao Vizcaya Argentaria (BBVA) is a global retail and commercial bank. It is the second biggest in Spain but also has a strong international footprint.

For some time, investors have been aware that interest rates are at an all-time low. With the Bank of England raising interest rates for the first time in a decade, Peter Hofbauer, Head of Infrastructure, Hermes Investment Management, asks: what impact could rising interest rates have on investors and infrastructure asset values? At Hermes Infrastructure, we have been focussed on the potential impact of rising interest rates and structured our portfolio over the last five years to ensure it is resilient against future increases in real interest rates. Some of the issues considered and steps we have taken to manage this potential exposure are set out below.

Neil Williams, Group Chief Economist at Hermes Investment Management, sets out his reaction to today’s UK Autumn Statement. Today’s Statement was always going to signal the extent to which chancellor Hammond has kicked austerity into touch, though in the event not as much as some would like. The Treasury is no longer aiming to return the finances from red to black by 2019/20. Yet, with borrowing lifted again and Brexit looming, the chancellor is not going to let his fiscal-guard down completely: the squeeze is just deferred.