Trump’s anti-immigrant, isolationist stance pumps up inflation expectations
President-elect Donald J Trump’s aggressive positions on immigration, infrastructure spending and isolationism could push up wage and core inflation, commentators fear.
Federal Reserve
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PA ANALYSIS: Inflationary fears as Trump victory spooks bond investors
Bond investors are strapped in for an explosive month ahead as more questions were raised over the next Fed rate rise, following today’s US election result.
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PA ANALYSIS: High-yield bonds and emerging market debt – Divergent fates
While emerging market debt saw record quarterly inflows globally during the third quarter of 2016, the global hunt for yield does not benefit developed market junk bonds. But this could soon change.
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PA ANALYSIS: Is the Fed boxing clever or scared to throw a punch?
In backing off from even a minuscule rate rise at its September meeting, the Federal Reserve is running the risk of appearing to be a follower rather than a leader.
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Fed leaves investors waiting for Trump and Clinton
The Federal Reserve’s decision announced last night to keep rates on hold has left investors waiting to see the outcome and market impact of the Presidential election before a rate rise is put back on the agenda.
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Are we nearly there yet?
With children now back at school and pubs starting to put up the Christmas decorations (I kid you not), the summer holidays already seem like a long time ago and the constant cries of ‘are we nearly there yet’ – only to have the little darlings fall asleep 20 minutes before you finally reach the…
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EM debt star to stay on the rise amid Brexit fallout and Fed rate hike
More than half (54%) of the respondents surveyed by NN Investment Partners expect institutional investors to raise their exposure to emerging market debt over the next three years despite volatility inducing events like a Federal Reserve rate rise and the Brexit aftermath.
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Clinton could improve on status quo but US could overheat under Trump – Lombard Odier
Lombard Odier macro strategist Bill Papadakis suggests the economic outlook under a Hillary Clinton presidency could “turn out to be somewhat better than pure status quo,” while a Donald Trump victory would spell significant uncertainty for the United States and possibly globally.
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Improving Chinese economy should keep EM calm – Kames
An improving Chinese economy should keep emerging markets calm and means the emerging nations are better placed to absorb a tightening of rates in the United States, according to Scott Jamieson, head of multi-asset at Kames Capital.
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Nomura’s Hodges warns of Fed-triggered equities dive
Nomura Global Dynamic Bond manager Richard ‘Dickie’ Hodges anticipates the Federal Reserve rate hike will trigger a fall in global equity markets by as much as 5-8%.
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Yellen says case for rate hike has ‘strengthened’
Speaking at the annual Jackson Hole symposium, Federal Reserve Chair Janet Yellen said the solid performance of the United States labour market and current economic outlook mean the case for an increase in the federal funds rate has ‘strengthened in recent months.’
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Bond euphoria swells but don’t discount autumn shock – BAML
While bonds have become the new stocks for many investors, ‘Taper Tantrum II’ remains a real threat for asset markets this autumn, warned Bank of America Merrill Lynch ahead of Fed chair Janet Yellen’s Jackson Hole speech today.
