Latest Posts
US earnings season gets off to a positive start, Netflix with record figures
On the world’s stock exchanges, earnings season in the USA is being followed with great interest. During this period, almost all major listed US companies report on their past financial quarter and give an outlook for the coming year.
USA: Clear sailing for Joe Biden’s economic programme after winning Senate majority
After the Democrats’ success in the Senate run-off elections in the US State of Georgia, the party now has the de-facto majority in both chambers of Congress, and therefore US President-elect Joe Biden should soon have much more leeway for implementing his economic policy programmes.
Covid Vaccines – From Race to Chase
Covid vaccine distribution has begun in much of the developed world. Politicians, commentators and citizens criticize the slow start to immunizations. But like the Tour de France: What counts is not who wears the yellow jersey during the first stage, but who crosses the finish line first at the end. Three factors are crucial to that: vaccine supply, vaccine distribution and, most importantly, vaccination acceptance.
The best funds of 2020
A turbulent year at the stock exchange has come to a conciliatory end. Those who were invested in funds in 2020 were able to achieve increases in value despite the pandemic and lockdown. Read more about the best funds of 2020 in today’s blog.
ECB and European Parliament get crisis programmes for 2021 on track
As the year 2020 comes to a close, the European Central Bank (ECB) and the European Parliament have put their respective programmes for the fight against the crisis on track for next year. The MEPs recently approved the approximately EUR 1.1tn Community budget for the next seven years, which includes EUR 750bn in Corona aid.
Erste Asset Management regards economic recovery as driver of the capital markets in 2021
We are looking back on a turbulent investment year. After the slump in February and March, we saw a strong recovery on the markets almost across all asset classes. CEO Heinz Bednar and CIO Gerold Permoser give an outlook for the capital markets in 2021.
OPEC+ haggling over production restrictions at ongoing meeting
The eyes of the international business world are currently fixed on Vienna. At the OPEC headquarters in downtown Vienna, the oil cartel’s member states and its allies are currently haggling over production volumes, and thus the further development of oil prices, via video conference.
The free trade agreement RCEP – A historic milestone
At a time when Covid-19 is ravaging the global economy, 15 Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP) at a virtual Summit on November 15. The RCEP is a meaningful achievement for regional cooperation and a historic milestone in the globalization process.
“Our funds lead companies to engage more actively with sustainability”
Can investment companies contribute to making the world a better place? Walter Hatak, Head of Sustainable Investments with Erste Asset Management (Erste AM), responds with a resounding “Yes – but only with the help of our clients!” More and more client assets go towards climate-friendly companies, while at the same time Erste Asset Management uses its votes from the shares it has invested the clients’ funds in to elicit more sustainability from companies across the board.
Turkey: Erdogan combats crisis with new economic programme after change of staff
After unexpected replacements of the head of the central bank and the finance minister, Turkish President Recep Tayyip Erdogan recently declared war on the inflation and currency depreciation in his country with a new economic programme. In doing so, Erdogan is radically turning away from his previous economic policy line by relying on foreign investment and monetary stability.
COVID-19 Update: Moderna reports preliminary results from phase 3 vaccine trial
U.S. biotech company Moderna reported positive results from the first interim analysis of its Covid mRNA vaccine candidate. The IA found that of the 95 identified Covid cases in the study population 90 occurred in the placebo group, thus yielding a vaccine efficacy of 94,4%.
“Megatrends work“: One-year anniversary of ERSTE FUTURE INVEST – a positive look back
These days a fund that has drawn the attention of many investors is celebrating its first birthday: the megatrend fund ERSTE FUTURE INVEST. The performance to date is respectable. Despite the corona pandemic, the fund has recorded comfortable gains, outperforming important stock exchange indices.
Covid Vaccine: Pfizer, BioNTech and the beginning of the end?
In a press release on November 9, Pfizer gave a first taste of the results of the Phase 3 study of the Covid vaccine, which was jointly developed with German biotech company BioNTech. With an estimated efficacy of 90% and the start of the vaccination campaign possibly as early as January 2021, there is light at the end of the tunnel. But some hurdles still remain.
A Black Mink Event – COVID-20
In the USA the fight for the White House is still raging. Meanwhile, in Copenhagen, 9,000 kilometers away, Danish Prime Minister Mette Frederiksen declared that all minks in the country would be killed to contain the spread of a new SARS CoV-2 variant. What is a Black Min Event?
Emerging markets corporate bonds: numerous recovery candidates in case of improving corona crisis
Emerging market corporate bonds are an interesting asset class in the current low-rate environment. Péter Varga, Senior Professional Fund Manager at Erste Asset Management, answers the key questions on the current environment.
OMV’s Climate Path 2050
Growing demand for energy and accelerating climate change pose immense challenges for the energy sector. The key lies in finding the balance between climate protection efforts, affordable energy, and reliable supply. In a guest commentary. Dr. Eric Schmiedchen explains OMV’s climate path.
Sustainable performance via engagement and dialogue
The topic of sustainability offers a great opportunity to discuss the question of engagement. By engagement, we understand the dialogue between investors and shareholders and the respective companies in order to suggest changes and to bring them about in a targeted fashion.
ADDED VALUE FOR (WO)MAN AND NATURE: Sustainable investments for a better tomorrow
The coronavirus pandemic is currently a challenge to the entire world, but the climate crisis has not lost any of its urgency either.
Sustainability – a critique of a success story
The term “sustainability” can be found in the 2019 annual reports of all 20 ATX companies – and usually more often than terms like “profit” or “efficiency”. What the reference to sustainability means specifically is not always clear.
How do rating agencies assess sustainability?
To many companies, ESG is still a relatively new field, which is why it is important to understand how rating agencies evaluate sustainability and how the approach has changed over the years.
Global economic slump less severe than expected, but still the worst recession in decades, according to IMF
According to current forecasts by the International Monetary Fund (IMF), the global economy should be able to handle the consequences of the corona pandemic somewhat better than has been feared. In its eagerly awaited global economic outlook for this year, the IMF now expects global economic output to decline by only 4.4 per cent. The IMF has thus adjusted its last forecast from June by 0.5 percentage points.
The new economic paradigm: cheap money and a very active State
The economic paradigm – the leitmotif, as it were – has only changed twice in the past 200 years: in the 1930s from liberalism to Keynesianism, and in the 1970s to monetarism. Since the Great Financial Crisis in 2008, we have noticed a new economic upheaval, which has now crystallised into a new paradigm as a consequence of the measures taken to fight the corona pandemic: without a name yet, this paradigm is characterised by cheap money and a very active role of the State.
US election campaign entering hot phase: decision in the midst of the crisis
In the midst of the corona crisis, following the first TV debate and US president Donald Trump’s infection with the corona virus, the race for the US presidential office enters its critical phase. In nationwide opinion polls, Democratic candidate Joe Biden is currently ahead of Republican incumbent Trump.
Will interest rates remain low in the long term?
The interest rates seem to have been going one way for years – down. With the exception of a few corrections, the taboo has been broken for many years that bond yields should have to be positive all the time.
High Inflation – likely to emerge?
At the beginning of September, the FED announced a significant change in their policy: They officially announced the implementation of “average inflation targeting”. This allows to have a higher inflation rate for a period of time instead of being closely held to the target inflation rate of 2%.
Why did the FED announce this shift in its policy? Is inflation returning in the agenda? In this article, we intend to show the policy requirements for high(er) inflation.
New Prime Minister Suga wants to lead Japan out of the crisis with an old team and reforms
Japan officially entered a new era on Wednesday: As was expected, Japan’s new head of government Yoshihide Suga was elected Prime Minister by the majority of his Liberal Democratic Party (LDP), succeeding Shinzo Abe.
Are we heading for a secular stagnation?
When the economy is well, people are well. But just how well is the economy going to be in the coming years? Some economists believe the idea that we will be entering a secular stagnation – or have already entered it – to be a realistic scenario. What does that mean?
COVID-19 Update from the Investment Division: Russia to the Rescue?
Researchers from Moscow-based Gamaleya institute, an offshoot of the Russian Ministry of Health, published detailed phase 1/2 results of their COVID-19 vaccine in the Lancet. If true (remember that we are talking about Russia), these results imply that their vaccine is both effective and has a tolerable safety profile which would make it a strong contender in the international race to defeat COVID-19.
Tensions are rising in the run-up to the US elections
The US elections in November are not only important from a geopolitical perspective. The race between Joe Biden and Donald Trump for the presidency also influences events on the financial markets.
SARS-CoV-2 is mutating. Barely.
Since the start of the current pandemic researchers and policymakers have worried about possible mutations of SARS-CoV-2. A recent paper based on over 18 500 virus genome samples collected thus far concludes that these worries are unfounded.
The scary R-word: Should we worry about reinfection?
Recently, the first documented case of reinfection with SARS-CoV-2 has apparently surfaced in Hong Kong. A day later, Belgium and the Netherlands also reported a reinfection each. Is it time to worry about acquired immunity and vaccine efficacy? There are three scenarios how this might turn out.
How to invest in the world of Industry 4.0
There is no question that new technologies will play a crucial role in everyday life. Understanding the trend and taking a reasonable action from investment point of view requires to have specific knowledge and setup specific metrics.
Shall I still buy equities or equity funds at this point?
The stock exchanges have gone through a rollercoaster ride of shedding 25% in value in March before rebounding sharply and even setting new highs, for example in the USA. In view of the difficult situation due to the corona virus and the resulting tense economic situation, many investors have asked themselves whether it might still pay off to buy after recent share price increases.
Erste Asset Management becomes a climate-neutral fund company
Numerous companies increasingly see themselves as responsible for doing something to protect the climate, and for good reasons. Erste Asset Management compensates for company-specific CO2 emissions and supports international climate protection projects.
SERIES: The next 10 years – longterm outlook
You need a mixture of history, economics and politics to hear through the everyday noise and recognize the big trends of the future. In our new series, Erste AM’s investment team identifies those factors that will determine the next 10 years.
Trade conflict between China and the USA – Update from the Investment Division
The trade conflict between China and the USA is gaining further momentum. In our opinion, this should also be seen against the background of the approaching presidential election campaign.
“High octane” for the portfolio
High-yield corporate bonds are currently in keen demand again, driven by the energetic steps taken by the central banks in their fight against the coronavirus crisis.
Continuation of an economic recovery – Update from the Investment Division
The majority of economic indicators point to a continuation of an economic recovery. This is indicated by data on industrial production, survey-based indicators and rising producer prices.
COVID19 Update: Sputnik V – the vaccine that came in from the cold
When Russian President Vladimir Putin celebrated his “Mission Accomplished” moment on August 11th with the announcement of Sputnik V, the world’s first SARS-CoV-2 vaccine, the global scientific community reacted with a mix of skepticism and condemnation. Is this warranted or a result of russophobia?
Financial markets outlook: equities and high-yield bonds remain first choice
On top of the corona situation, two additional developments have been crucial for the development of the financial markets. The central banks have been pursuing a very expansive regime on a global scale, and at the same massive stimulus packages have been passed in an effort to get the economy up to speed again
Trump declares war on Chinese companies behind TikTok and WeChat
US President Donald Trump has escalated his fight against the Chinese-owned social media services TikTok and WeChat, and in the process also caused new tensions in the trade dispute with China.
Corporate earnings provide tailwind – Update from the Investment Division
The surprisingly good corporate earnings provided a tailwind & the price of gold continued to rise. Update from the Investment Division.
Shares in positive territory – Update from the Investment Division
The US stock market was lifted by technology stocks such as Apple and Microsoft & earnings growth so far is -10.5%. Update from the Investment Division.
TikTok ban in the USA – Update from the Investment Division
TikTok is the focus of the dispute between the US and China & corporate bonds posted their best month in June. Update from the Investment Division.
FOMC Meeting – Update from the Investment Division
Yesterday, the Fed was the focus of attention & the increase in Covid 19 infections could put further pressure on the economy. Update from the Investment Division.
„I just can’t get enough“– Update from the Investment Division
In one hit the Black Eyed Peas sang “I just can’t get enough”. Even governments and central banks seem to have fallen in love with economic stimulus packages. Update from the Investment Division.
Losses for risk investments – Update from the Investment DivisionOutlook.
The markets for risky assets ended last week with losses. The main reason was the escalating tensions between China and the US. Update from the Investment Division.
Race for Corona vaccine: 25 vaccine candidates in clinical trials
The pharmaceutical companies and universities racing to develop a corona vaccine are making strides: according to the World Health Organisation (WHO), 25 candidates are currently undergoing clinical trials.
EU summit: Agreement on billion-euro aid package – Update from the Investment Division
The EU heads of state and government have agreed on a billion euro aid package. It is the largest in the history of the EU. Update from the Investment Division.
Marathon talks on EU Corona aid packages – Update from the Investment Division
The weekend was marked by marathon talks between EU leaders. So far, no agreement has been reached. Update from the Investment Division.