Latest Posts
Where are equities headed into year-end?
Global stock markets have fallen back from their all-time highs in recent weeks. What were the causes? What potential do the equity experts at Erste Asset Management see until the end of the year?
Falling Momentum and Hawkish central banks
Falling economic indicators, anger in China and interest rate decisions by central banks are currently in the focus of the financial markets. Our chief economist Gerhard Winzer analyses the current situation.
House Of Cards – the case of Evergrande
Is there a solution to the current situation of real estate developer Evergrande? How high is the share of speculative real estate purchases in China, who profits and what Evergrande has to do with the 2008 financial crisis, explains Senior Professional Fund Manager Péter Varga.
Gas Price Surge Driving up Electricity Prices and Fueling Inflation Concerns
Gas prices have soared in recent weeks. What are the reasons behind this? Will the planned increase in Norwegian gas supply bring the relief we have been longing for? Read more in our blog.
Has the real estate boom in China come to an end?
The economic boom of China has also been accompanied by a boom in the real estate industry over the past decades. The liquidity problems of the Chinese real estate developer Evergrande are heralding the end of the real estate boom in China.
What are the marks of quality shares?
In the long term, the quality of a company is also reflected in its share price. But what characterises quality and how can it be measured? And how can you invest in quality shares?
German Bundestag election – decisions for the future
Germany is facing an exciting Bundestag election on 26 September 2021. The outcome is completely open, but it sets the course for economic policy. The successor of long-term Chancellor Angela Merkel will also influence decisions at European level.
Theranos: user-friendliness and/or technological progress
Theranos was founded in 2003 by Elizabeth Holmes. The rise and subsequent trouble of the laboratory diagnostics company illustrates that usability does not suffice for the success of product and business ideas if the technological progress cannot keep up.
20 Years of 9/11: Full Circle from Bush to Biden
Exactly 20 years ago, on 11 September 2001, the USA was shaken by the worst terrorist attacks in its history. The attacks on the World Trade Center in New York claimed the lives of 3,000 people. They changed world politics. The effects are still a big issue today – keyword Afghanistan.
European Forum Alpbach: Overcoming the Crisis with Energy Transition, Capital Markets Union and Digitalisation
“The Great Transformation”: This was this year’s Forum Alpbach’s overarching motto for the talks and panel discussions among the assembled top politicians, economic leaders and scientists from around the world. Partly on-site and partly online, between 18 August and 3 September a total of 4,134 participants from 62 countries discussed possible ways out of the corona pandemic crisis and global future scenarios.
Vienna Stock Exchange turns 250
Yesterday, the Vienna Stock Exchange celebrated its 250th birthday. The “Wiener Börse” was founded by Empress Maria Theresa on 2 September, 1771, making it one of the oldest stock exchanges in the world. Erste Group has a long-running and close partnership with the Vienna Stock Exchange, an institution both rich in tradition and very much focused on the future.
Global economy running into headwind
The global economy is in the recovery phase of the cycle. Economic growth is well above the long-term trend, but headwinds have increased recently. What needs to happen to ensure that growth does not slow down? Chief Economist Gerhard Winzer analyses the prospects for the future.
Tourism Industry on the Path to Recovery in Summer, but Pre-Crisis Level Still a Long Way Off
The travel and tourism industry is continuing its recovery. The number of overnight stays increased noticeably in what is now the second Corona pandemic summer, and travel figures paint a similar picture. However, pre-Corona pandemic levels are still a long way off, and the recent strong spread of the delta variant of the virus is also an uncertainty factor.
Commodities in strong demand
Whether you want to buy a house or buy a car, many private consumers currently deal with soaring prices for materials and unpleasantly long delivery periods. This situation is directly reflected in commodity prices.
Why companies must focus on equality and equal opportunities
Many of our decisions are unconsciously shaped by prejudices, role models and stereotypes that prevent diversity and inclusion. Yet diversity is critical to the future of a company. Overcoming unconscious bias is often the first step in recognizing inequalities and the need for action behind them.
Sixth progress report of the IPCC: Physical risks of global warming
In August 2021, the IPCC (Intergovernmental Panel on Climate Change) published a report on global climate change. One of the key messages is that human influence has warmed the atmosphere, land areas and oceans. Heat waves, precipitation and the resulting soil moisture were identified as relevant physical risks.
Bond markets between strengthening economy and high liquidity
Bond funds are not always the “first choice” right now. The strong profits of listed companies and the orderly dividend payouts are currently outpacing interest income. If you are looking at performance, you have to look closely. Interview with Wolfgang Zemanek, Head of Bond Funds, Initial Asset Management.
What’s next after green? Social!
Twenty years ago, Erste AM launched its first sustainable fund, thus laid the cornerstone for sustainable investments in Austria. Since then, ESG investments (environmental, social, governance) have developed from a niche proposition to the dominant theme. Social aspects are increasingly coming to the fore.
Gesundheit!
The desire for health is a constant companion in social life. In a developed country with a well-developed health and insurance system, it may be forgotten, but health is a highly unevenly distributed commodity.
How to combine yield with sustainability factors
The issue of ESG is stronger in our consciousness than ever before. In recent years, many measurable indicators have emerged on environmental aspects. Social commitment and good corporate governance are more difficult to quantify. Are these factors even detectable and measurable for a meaningful evaluation?
Social banking as engine for the development of society in CEE
Social Banking supports people who are affected by poverty or social exclusion. This will ensure economic growth and prosperity in the region. Since its founding in 2016, Erste Group’s social banking system has already invested 400 million euros in the form of loans in the social development of the CEE regions.
“Every vote counts!”
Investors can make positive and lasting changes by actively participating in general meetings. As demonstrated in the last US presidential election, every single vote counts. Environmental and social issues in particular are becoming increasingly important.
Germany’s economy recovering from slump
Germany’s economy is back on a growth path after the pandemic dip at the beginning of the year. While service providers and retailers benefit from the relaxation of the Corona measures, the industry is being held back by material shortages and supply bottlenecks. How does the German stock index (DAX) react?
Is the fabric we are wearing really clean?
Working conditions and health standards in the supply chains for the textile industry are increasingly in the public crossfire. Disasters such as those in Bangladesh have already led to a rethinking of major listed companies and have also triggered political action.
How many chips are installed in a car?
Car manufacturers are under pressure to meet the sharply increased demand for new cars. Many production lines were closed in the lockdowns. This is why individual parts are only now being re-produced and there are supply bottlenecks. What do microchips have to do with this and why are used cars so expensive in the US?
Sustainability-linked bonds – an alternative to green bonds?
Green bonds are securities that are allocated to specific energy and environmental projects and are intended to contribute to a climate-friendly transformation of the economy. According to a study by the Climate Bonds Initiative (CBI), they reached a record level of $269. 5 billion in 2020. Sustainability-Linked Bonds represent a voluntary commitment for issuers. How exactly they work is explained in our analysis.
Bezos, Branson and Musk launch the age of commercial space tourism
With their flights into space in July 2021, multi-billionaires Jeff Bezos and Richard Branson launched the era of commercial space tourism. Whether space travel can become a lucrative business remains to be seen.
ERSTE GREEN INVEST’s one-year anniversary: megatrend green technologies
The subjects of environment and technology have been occupied by brokers for years. This sector also has great growth potential in the coming years. Many companies are only at the beginning of a promising development.
ESG bonds made in the USA
ESG bonds are currently on the rise and are becoming an increasingly important part of corporate bonds. According to BofA Securities, 13. 5% of all new issues with ESG criteria were already issued globally in the first half of 2021. This trend is well established in Europe and is also increasing in the USA, as the following analysis shows.
Erste Asset Management financial markets outlook for the second half of 2021
Since the beginning of the year, the rapid recovery of the economy has mainly supported securities such as equities. But what happens next? Erste AM Managing Director Heinz Bednar and Head of Multi Asset Alexander Lechner explain how the second half of 2021 and especially our focus on sustainability will continue to develop in our outlook for the next six months.
Is this the end of the reflation trade?
Inflation peaked in the US and the eurozone in May and has declined from there. Long term yields fell and lowered real yields. How could this happen?
Oil prices climb to multi-year highs after OPEC negotiations fail
The rise in oil and energy prices is fueling concerns about a burgeoning inflation. Behind the failure of the latest OPEC negotiations is also a political competition for influence and power in the Gulf region.
Big Big Data
When it comes to series streaming, online shopping and sports, data accompanies us through our daily lives. Even in the economy, forecasts are made on the basis of data analysis. How does Big Data create opportunities for the future??
Falling economic momentum is not bad news
One of the most important economic indicators, the global purchasing managers index for the manufacturing sector, fell in June compared to the previous month. Is that bad news for risky asset classes like stocks? Our chief economist Gerhard Winzer analyzes the most important scenarios.
5 years after the Brexit referendum: UK on the path to recovery in turbulent times
These days mark the 5th anniversary of the British vote to leave the European Union. How does the UK stand economically after the “Brexit”? What challenges still lie ahead for the country? What opportunities do investors have? Read more in today’s blog.
The Fed is a dove
Equities have been weaker in recent days. This is largely due to concerns that sooner-than-expected interest rate increases in the USA could be detrimental to the financial market. Chief economist Gerhard Winzer explains why in the most likely case scenario, this will not be happening in the foreseeable future.
Erste Asset Management pulls the plug on coal on 1 July
We are pulling the plug on coal, abstaining from investments in companies that operate in the fields of coal mining or the production of electricity or fuel from coal from 1 July 2021 onwards.
G7 countries agree climate targets, vaccination programmes and China policy
With renewed vigour, the heads of state of the G7 group of leading industrialised nations recently agreed climate targets, vaccination programmes for poor countries and a common front against China at their eponymous summit, held in the British resort of Carbis Bay.
China bonds in demand for mixed funds
China as a third pole. The reasons why fund managers expect China government bonds in mixed funds to generate more return and at the same time provide better diversification.
Erste Group is first financial institution to commit to the European Commission’s Green Consumption Pledge
As the first financial institution in Europe, Erste Group has joined the European Commission’s Green Consumption Pledge initiative to accelerate its contribution to a sustainable economic recovery. The Green Consumption Pledge is the first initiative delivered under the New Consumer Agenda and part of the European Climate Pact.
Covid vaccinations: Apathy follows euphoria
If you ask around in your own circle of acquaintances, you will find that the vaccination coverage rate is now significant. In Austria, it seems, everyone who really wants a vaccination has already received at least a partial vaccination – regardless of prioritization, age or medical history. The EU vaccination rate lags about 6 weeks […]
DAX set to break all-time high thanks to economic recovery as election year autumn approaches
Germany has awakened from its pandemic “deep sleep”, and the economy is picking up speed in an election year. Investments related to the reduction of greenhouse gases could give a strong boost to innovative companies in the DAX and at European level.
Equities and the inflation scare
The strong economic recovery and positive corporate results are fueling concerns about the emergence of inflation. But are these fears justified? Erste Asset Management equity expert Tamas Menyhart analyzes the situation on the stock exchanges and shows ways of guarding against inflation.
Rapid recovery in the developed world
The global economy is caught between a strong recovery and inflation fears. Despite low risk premiums, Erste AM Chief Economist Gerhard Winzer continues to see opportunities for equities as long as bond yields rise less than corporate earnings growth rates. Read more in his blog analysis.
Financial Markets: robo investment vs. human judgment
It is impossible not to notice the rising interest in algorithm-based investing. Fund manager Mikuláš Splítek argues the case of whether a robo-advisor or human judgment is better to beat the market.
Sell in May and …
.. go away, but don’t forget to come back in September. This is an old stock market adage that most investors probably know. There are loads of those, and this is among the most popular ones. Our Head of Global Strategies & Research, Alexander Sikora-Sickl explains what’s behind it.
Banks, IT companies and car manufacturers report profit gains in Q1
The reporting season is drawing to a close. Most of the companies listed on the stock exchange exceeded analysts’ estimates. The outlook for the future is also optimistic.
Sustainable income with “double dividends”
Comfortably making return on the money market via interest? A thing of the past. Investors wanting to outsmart inflation should think about dividends and dividend shares. The combination of dividend shares with a selection process that takes into account ESG criteria constitutes an interesting investment alternative. So there is a kind of “two dividends”.
Global semiconductor shortage continues to pose challenge for automotive and electronics sectors
The global shortage of semiconductors is causing problems for car manufacturers and the computer industry. Trends such as the digitalisation of working life or autonomous driving are likely to increase demand even more. Technology shares are in demand.
Has gold lost its shimmer?
After a strong increase in the last 5 years, the gold price has weakened recently. Will demand for the precious metal increase again?