China is now one of the largest economies in the world, and its spending power helped drag the western world out of recession following the financial crisis. This appears to have come at a price, however, and the fallout is being felt not only in China but throughout capital markets worldwide. That said, as we […]
Scott Thiel, deputy CIO Fundamental Fixed Income and head of the Global Bond Team at Blackrock, comments on the September ECB meeting and global fixed income themes. It feels like a long six weeks since the ECB Governing Council’s last monetary policy statement. The usual summer lull has been definitely absent this year, with further […]
Dispersions among stocks are set to increase as volatility of performance increases across stock markets globally, in turn meaning that stockpickers have a better chance of showing off their ability to generate alpha, according to BlackRock’s latest mid-year outlook. Commenting on the situation facing stock markets, Richard Turnill, managing director and chief investment strategist for […]
In 2014 Chinese equities have largely been driven by sentiment and the government’s constant tug-of-war between its reformist agenda and the quest for growth, rather than pure fundamentals. The recent interest rate cut by the People’s Bank of China was surprising as we believe the slowdown in the country did not warrant such an aggressive […]
Craig Botham, Emerging Markets Economist at Schroders, comments on China’s recent policy announcements. There were two significant announcements from China’s policymakers last week. Firstly, the one year deposit rate was lowered by 25 bps to 2.75%, while the one-year lending rate was lowered 40 bps to 5.6%. It marks a change of stance by the […]
Bob Michele, Global CIO and head of Fixed Income, JP Morgan Asset Management: It’s great to see some volatility back in the fixed-income market. What had been shaping up to be a pretty uneventful year, with falling rates and tightening credit spreads, is finally turning into one that offers investors some real opportunities — in […]
Carmignac Group and BNP Paribas Investment Partners have been granted the RQFII licence as Renminbi Qualified Foreign Institutional Investor. The licence gives access to A shares and local bonds denominated in RMB. The management company will subsequently be allocated a specific investment quota. The licences have been awarded as part of a visit by Chinese […]
The People’s Bank of China has bought 2% of Italy’s insurer Assicurazioni Generali, according to both Reuters and the local trade press. The Chinese central bank is now the fifth shareholder of Generali, following Mediobanca(13.465% del capitale); Cassa depositi e prestiti (2.569%); B&D Holding di Marco Drago (2.433%) and Effetti (2.151%). After the news, Generali’s […]
Frankfurt is set to become the first European clearing centre for Renminbi (RMB), following the signing of a memorandum between Deutsche Bundesbank and the People’s Bank of China during a state visit by Chinese president Xi Jinping in Berlin last Friday.
The People’s Bank of China (PBoC) needs to place a greater focus on market stability with regard to the current liquidity problems facing the country’s banking system, according to a senior figure from Bank of Communications.
The unilateral approach taken by the US to combat tax evasion is not the right one, says senior figure at the People’s Bank of China
London bullion broker Sharps Pixley looks to monetary and political policies as the key drivers of volatility in the near term gold price.