Since the beginning of November the prices of both risky security classes such as equities and credit-safe government bonds have been on the rise. The market appears to be increasingly pricing in a so-called “soft” landing for the economy. The probability of this actually increased over the course of the year. However, the economic data published in recent weeks and months does not contradict the “hard” landing scenario.
Although environmental and social issues dominated the shareholder resolutions in this year’s voting season, their approval by investors declined. There are many reasons for this. In any case, Erste AM is increasing its support for environmental and social motions.
The financial environment has become slightly more relaxed since the beginning of November. This fact is manifesting itself on the market in the form of falling yields and rising share prices. This week, two indicators relating to the US economy in particular could provide clues as to the sustainability of this trend since the beginning of the month: retail sales and consumer prices.
The robust labor market and many special offers give hope for another record Christmas season in the USA. The latest market research data also shows that, despite inflation and high interest rates, Americans are once again planning to spend more over the holidays this year.
The booming fashion industry is also confronted with a wide range of challenges due to climate change. These could prompt the entire industry to rethink.
India was recently in the spotlight as the venue for the G20 summit. Shortly thereafter, however, the relationship with the major Western states cooled. How will the West’s relationship with India develop and what role will the country play in the future?
Rating agencies assess the creditworthiness of companies and thus play an important role in the financial market. They were also in the spotlight at the beginning of the corona pandemic, with many companies being downgraded as a result of the crisis. In the meantime, the pandemic has been overcome and some of the so-called “Fallen Angels” are once again in a much better position with regard to their creditworthiness and rating.
Roughly two weeks after the surprising terrorist attacks by the radical Islamic Hamas ruling the Gaza Strip, on targets in Israel, the military conflict in the country continues unabated. The war in the region also continues to dominate the financial and commodity markets, with global concerns that the conflict could possibly spread to other countries in the Middle East being the main driver of uncertainty.
There is hardly any getting around artificial intelligence (AI). Are we only at the beginning of an AI hype or has it already peaked? For whom is AI good business at all and what can the new technology actually be used for?
Gold has played an important role in the financial and economic system for centuries. While it initially served as a means of payment, the role of the precious metal increasingly changed over the course of history to become a crisis currency and a store of wealth in uncertain times.
