In the US, interest rate hikes to a level of 3% by the end of 2023 have become likely. When will the European Central Bank follow? Erste Asset Management Chief Economist Gerhard Winzer analyses the interest rate policies of the central banks.
The increased demand for semiconductors continues to cause supply bottlenecks. This is why the EU wants to boost Europe’s share of the global market in semiconductor production. In particular, computers and mobile phones as well as consumer electronics are in demand.
Within two years, the global economy has been confronted by two negative events or, indeed, shocks: the Covid pandemic was the first one, having not only killed six million people globally at this point, but having also caused an unprecedented slump in the global economy and the subsequent recovery. The second one, i.e. the invasion of Ukraine by Russia, is of a geopolitical nature and has triggered a commodity price shock.
Although volatility and uncertainty remain particularly high in the capital markets, there has been some stabilization and, most recently, a slight recovery in the equity markets since last week.
After the oil price climbed to its highest level since 2008 in the previous week, the countries want to end their dependence on Russian oil and natural gas supplies.
The extreme rise in the price of oil and natural gas due to the Ukraine war is leading to a rethink in Europe: many states are striving for sovereignty in energy supply. The expansion of renewable energies and storage technologies will proceed even faster.
The global economy was confronted with two negative developments within two years: the Covid-19 pandemic and the Ukraine war. Erste Asset Management’s Chief Economist Winzer analyzes the stagflationary state of the economy.
What are the effects of the sanctions imposed on Russia on our funds? Interview with Alexandre Dimitrov, Senior Fund Manager with more than 20 years of experience and special field of expertise: equity markets Russia and CEE.
Stocks posted significant gains on Wednesday after U.S. Federal Reserve Chairman Jerome Powell signaled that the central bank would begin raising interest rates this month. Stock markets interpreted this as a positive signal in the sense that the threat to growth posed by the war in Ukraine did not justify a change of course in monetary policy at the moment.
We want to highlight the possible impact of the war in Ukraine on investment decisions. In short, the conflict reinforces already existing trends. In addition, the global recovery scenario is still holding, but recession risks in Europe have increased.