The prevailing consensus has settled around the expectation that the first UK interest rate hike is a considerable way off, but there are reasons to think this could quickly change once again.
The past few weeks have been somewhat of a rollercoaster ride for investors across markets.
From forex-rigging bankers to (allegedly) naughty FIFA officials, Lord Acton’s famous words on how “absolute power corrupts absolutely” have rarely been more relevant. But what absolutes are there for when markets misbehave?
As valuations of big name companies in the United States and to some extent the United Kingdom look increasingly rich, investors may become more tempted to turn to less obvious targets.
Malaysia’s state oil company, Petronas, is the latest casualty of the slump in oil prices, announcing on Friday a 43% decline in first quarter profits and saying it expects sustained low prices to continue to affect its 2015 performance.
Jupiter Asset Management CEO, Martin Slenderbroek recently compared the firm to the oil services industry.
Expectation is mounting that China is planning its own version of quantitative easing and investors weighing up how to play the world’s most populated country may struggle to assess the situation.
Harwood Capital’s acquisition of Wellian Investment Solutions is by no means on a par with the Old Mutual’s acquisition of Quilter Cheviot. Nor is it of a size similar to Towry’s purchase for £97m of AIM-listed Ashcourt Rowan. But, what the deal lacks in size, it could well make up for in intent and symbolism.
BHP Billiton’s spin off and listing of South32 fell rather flat on Monday, as its shares traded at the lower end of analyst expectations, giving the newly minted firm a market cap around $8.7bn.
The recent bond market gyrations have disturbed the fragile peace that had broken out between bulls and bears. Some of the stronger consensus calls have been dented and questions about bubbles have once more to emerge – as have advocates for both sides.
After months of grinding yield compression the pressure valve on the German sovereign bond market was released, with 10-year bund yields jumping almost ten-fold in the space of a few days.
Aside from revising growth lower and putting an end to sterling’s election-led rally, The Bank of England’s May inflation report once more placed the spotlight firmly on productivity growth as the possible bad apple that could upset the whole cart.
