Don’t underestimate the productivity puzzle – Nordea AM
The collapse in productivity in developed markets as well as some emerging markets is the single most overlooked story in the global economy today, said Nordea AM’s Karsten Bierre.
The collapse in productivity in developed markets as well as some emerging markets is the single most overlooked story in the global economy today, said Nordea AM’s Karsten Bierre.
The latest official UK GDP figures showed 0.4% growth in the first quarter of 2016 in line with forecasts, and down from 0.6% the previous quarter.
As the world wakes up to the new reality of extremely slow growth, there seems little doubt the returns investors became accustomed to during the ‘Great Moderation’ are a thing of the past.
Growth investing has had a stellar few years but, amid talk of more favourable conditions for value investors, there is little evidence yet to suggest the tide has turned.
The importance of structural growth stories in “new Russia”, cannot be underestimated, said Michael Levy, lead manager for the Baring Russia Fund.
The People’s Bank of China announced its sixth rate cut of 2015, lowering interest rates for one year lending and deposits by 0.25 percentage points to 4.35% and 1.5% respectively.
European equities should be the object of investor focus, say industry experts, with continental small caps providing the sole recovery play in global markets.
JP Morgan Asset Management has announced the capture of former River and Mercantile equities specialist Alex Stanic.
Economic news from China has been the root cause of market jitters during the summer, although the recent spike in market volatility did not lead to signs of distress within the financial system, in the manner of 2007/8.
Nearly half of IFAs are pointing clients in the direction of multi-asset products, according to a report by Barings Asset Management.
Columbia Threadneedle Investments has added to its European equity capacity with the recruitment of Mark Nichols.
Investors in Chinese assets risk a ‘bruising fall to earth’ according to Thomas Miller Investment’s head of private investment management Andrew Herberts.