Fiorino: Many banks, multiple outcomes
Anything can happen. Or, according to one interpretation of quantum mechanics, everything that can happen, does happen. The so-called ‘many worlds’ postulate, first floated in the 1950s by then US physics PhD student, Hugh Everett III, resolves a fundamental enigma of the ‘wave function’ – the mathematical expression of how a quantum system, such as […]
ABS issuance: Why so low?
Chart of the month
Our investment teams on the key themes for 2023
2022 was a challenging year which rocked financial markets and forced investors to reconsider their positioning against a backdrop of uncertainty. Russia’s invasion of Ukraine challenged Europe’s reliance on Russian commodities and caused an energy crisis; inflation soared to a four-decade high, sparking a cost-of-living crisis. Investors are understandably cautious about what might be in […]
Beyond reopening: China’s transformation
Emerging markets have lagged developed markets this year by 6%, with China reflecting the most notable drag at -26%. However, China stocks are enjoying something of a ‘Santa rally’ amid hope Beijing will relax its strict Covid-19 measures and fully reopen its economy. The MSCI China Index jumped by 29% in November1 to deliver its best […]
Spectrum, Q4 2022
Inflation, one year on
The Federated Hermes 2023 Outlook
Read our Federated Hermes 2023 Outlook where our experts from across our investment floor give their views on how the following eight key themes will play out next year for their respective asset classes: Inflation Geopolitics Energy Tech ESG Biodiversity China Cost of Living Share:
Fiorino: Leverage will tear us apart, again
On November 8, the blood moon eclipse pushed more earthbound topics – such as war, inflation and near collapse of the UK financial system – momentarily to the sidelines as people around the world paused to marvel at the blushed red hues of our nearest celestial neighbour. Some may have gazed up and wondered how […]
Will Brazil’s outperformance continue under Lula?
Brazil is at the end of its monetary tightening cycle; inflation is slowing down, and the country is richly endowed in energy and commodities. Since the start of the war in Ukraine, Brazil has seen inflows worth about US$9bn into local equities. For bond markets, Lula’s victory in the presidential election could mean a shift […]
Ahead of the Curve, Q4 2022
Fast reading: Macro outlook: The European energy crisis, mounting inflation (implying tighter monetary policies), and a poorly performing Chinese economy are all battling for the spotlight on the stage of economic uncertainty. The geopolitics of high inflation: While policy decisions are often the results of short-term pressures, recent geopolitical developments can provide some guidance with […]
Ahead of the Curve, Q2 2021
Key points The global economy is bouncing back quickly from a sharp collapse in the first half of last year. What we are seeing now, therefore, is to some extent the mirror image of developments in 2020. Despite having increased somewhat over the last year, long-term inflation expectations are still low by historical standards. The […]
