Outlook & Commentary
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Outlook & Commentary
Although the Bank of Japan has enjoyed some success with its novel approach to financial engineering – including implementing negative interest rates and yield-curve controls – the economy and inflation both need to improve. As a result, we expect the BoJ to keep its monetary policy on hold, at least for now.
Outlook & Commentary
With rate hikes and tapering on the table, we expect the Fed’s next communications to be slightly less dovish. The central bank will likely want to counter the market’s doubts about its strategy even as it deals with internal issues and stubbornly low inflation.
Outlook & Commentary
We don’t expect the Bank of England’s monetary policy committee to announce a rate hike at its next meeting – or anytime in the next two years, barring some rebound in macro data. At the same time, the BoE doesn’t want the markets to be complacent about its ability and willingness to do so.
Outlook & Commentary
With a healthy economy on the one hand and a surging euro on the other, the ECB wants flexibility on when to start tapering. Factor in the ECB’s internal debate about how to announce its tapering approach, and investors should expect the central bank to keep its communications vague for now.
Outlook & Commentary
As the global economy continues to muddle through, the days of easy monetary policy may have peaked – along with the period of ultra-low yields. We may begin to see changing policies as central banks re-evaluate, which could lead to jittery markets.
Outlook & Commentary
While the rhetoric between the US and North Korea has turned increasingly bellicose, the threat of war remains low – despite the lack of any obvious resolution. The uncertainty created by this situation remains unsettling for global investors, with volatility likely to rise further. But this may also create opportunities as assets recalibrate.
Outlook & Commentary
A major new piece of European Union legislation is set to take effect early next year, and all companies doing business in the EU will be affected. Yet some management teams have told us they are still not prepared for the impact of the new rules or the complexity of compliance.
Outlook & Commentary
Now that some of Europe’s most critical elections have been resolved, investors looking ahead to the second half of 2017 may want redirect their focus. This may be the time to take a closer look at other market drivers like economic growth, rising inflation and global monetary policy.
Outlook & Commentary
There’s a growing appetite for hybrid and electric cars, but less than 1 per cent of the vehicles produced globally are electric. A new Grassroots report on what’s driving these purchases raises a key question: Given the interest in going green, is the real problem a lack of compelling options from auto makers?