At the annual meeting of central bankers in Jackson Hole Federal Reserve Chair, Jerome Powell, summed up the uncertain environment as “navigating by the stars in a cloudy sky”. This relates, among other things, to the uncertainty about the level of the neutral interest rate, the lagged effect of key-lending rate hikes on economic growth and inflation, and the drivers of inflation.
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Sustainable investments: fad or long-term trend?
With a view to the Ukraine war, the multiple regions of crisis or the extreme inflation, one would be forgiven for thinking that sustainability issues were taking a back seat when it came to investing. Gerold Permoser, Chief Investment Officer of Erste Asset Management, claims that this is not the case and that there is a lot of potential for investors. In a recent press talk, he and Heinz Bednar, CEO, presented five key drivers for ESG investments.
Sustainability and biodiversity: the strategy of voestalpine
Climate and environmental protection are central elements of voestalpine’s sustainability strategy. The conservation-minded use of resources such as raw materials and energy along the entire production chain has been firmly anchored within the group for years. Minimising the environmental impact of processes and products also plays a central role, as Stefan Schuster, Group Environmental Management at voestalpine AG, writes in his guest article.
The known unknown: China’s recovery proves more difficult than expected
After getting off to a good start at the outset of the year, economic recovery in China has recently stalled again. Following the lifting of stringent measures to contain the pandemic, the path out of the crisis is proving slower than expected. The flagging domestic demand as well as the ailing real estate sector, have recently put a damper on the world’s second-largest economy.
Compound interest – how to make interest work for you
Interest ensures that the money in the savings account or invested in securities grows. If you have already saved or invested some money, you will receive interest on the interest again. This is compound interest. Compound interest makes your money grow even faster, especially if you don’t touch the money for years and interest rates are high.
Soft landing with risks
Currently, the most important indicators point to average global economic growth and falling inflation. The probability of an immediate recession has decreased significantly. But the risks in the medium term remain. Chief economist Gerhard Winzer explains which three scenarios are currently emerging in the blog post.
Miracle drug semaglutide: slim by injection
Originally, the Danish company Novo Nordisk wanted to develop Semaglutid as a drug for diabetes 2 patients. However, the appetite-reducing effect of the drug soon became apparent, making semaglutide a miracle cure for obesity. While Novo Nordisk’s share price has risen significantly since then, possible side effects of the drug are now also being examined.
A Tale of Two Companies: Bayer’s Biodiversity Conundrum with Monsanto
In 2018, Bayer acquired the US agrochemical and agricultural chemicals company Monsanto. However, the deal, valued at around USD 64 billion, raised a number of questions. As a result of the merger, Bayer has since found itself responsible for a number of controversial practices of the US company. This is associated not only with sustainability risks but also with a potential risk of billions through various class actions.
Turnaround in the Energy Market: Power Companies Raise Forecasts, Oil Companies’ Profits Drop
The decline in crude oil prices has led to a trend reversal in the energy market this year: while many power companies have recently raised their profit forecasts, the major oil companies suffered massively from the recent drop in crude oil prices. Meanwhile, in the effort to reach climate targets, the trend toward renewable energies continues unabate
Microfinance – Fund Manager Martin Cech on an investor trip to Uzbekistan (Part II)
Microfinance fund manager Martin Cech recently went on an investor trip to Uzbekistan. While he wrote about the banks and microfinance institutions he visited in the first part of his travel report, he describes his impressions of the visits to some borrowers in the second part.