The global economy and the Eurozone continue to grow strongly. Furthermore, the Eurozone is currently experiencing new impulses for greater European integration through the new government in France and the coalition between CDU/CSU and SPD in Germany. On the other hand the outcome of the elections in Italy brought a politically instable result. The ECB meeting beginning of March did not include significant news.
In the past two days, the stock exchanges, spearheaded by the New York Stock Exchange, have shed the entire previous gains of 2018. Even last week, inflation worries had started to weigh on the markets. But the recent reaction was extraordinarily strong, with experts likening it to the excellent employment report in the US.
Capital markets recorded a positive year of 2017. The performance of the various asset classes was of the textbook variety: the higher the risk, the higher the return. At slightly more than 1%, even low-yield asset classes such as euro government bonds or US Treasuries (in USD) posted positive rates of return1). This came as a surprise seeing that many experts had expected higher yields for government bonds, which would have come with negative effects on prices.
Logistics makes sure the economy keeps moving. Today our world would not be conceivable without it.
From an economic point of view, the multiple transport of goods across Europe does make sense but from a sustainable point of view, the environment suffers from increased CO2 and fine particle pollution, exhaust gases and noise. The speed at which goods are transported increases steadily and thus also the burden of the workers involved therein.
By channelling their assets into microfinance funds, investors can contribute to reducing child labour. This is the opinion held by Martin Cech, Senior Fund Manager with Erste Asset Management.
We have talked to the ESG analyst team of Erste AM about Trump’s withdrawal from the Paris climate accord in a roundtable discussion: Dominik Benedikt, Alexander Osojnik, Stefanie Schock, and Walter Hatak.
Last Thursday, incriminating video and audio tapes emerged that linked current President Michel Temer to bribery. The accusations have thrown Brazil into a deep political crisis, and the capital markets have lost massively.
Markus Jandrisevits has been the manager of our global flagship equity fund ESPA BEST OF WORLD since 28 February 2002. The performance to date is impressive on an international scale. I asked Markus what was special about his investment approach and how he has positioned himself in the current stock market phase of high political risks.
Austria celebrates the 300th birthday of Maria Theresa. She was born on 13 May 1717 in Vienna. It was her who founded the Vienna stock exchange in 1771 on the basis of an imperial patent (see image), after an earlier, failed attempt in 1761. Even though a lot has changed politically, economically, and technically since then, the eventful history of the Vienna stock exchange is still very instructive for every investor.