Lately, it’s been easy to see the optimism. As of the Friday close, the S&P 500 is up 15% so far this year (not including dividends) and up 23% (again, without dividends) versus the lowest bear-market close back in October. … [Read more...] about Is the recession threat dead?
Economic
Confounding UK Inflation
Are we overly pessimistic on the underlying resilience of the UK economy? Are we reading too much into headline inflation and over-discounting more positive data? … [Read more...] about Confounding UK Inflation
ECB: more work required to tame inflation
The European Central Bank (ECB) has raised all three of its key interest rates by a further 0.25%, bringing the deposit rate to 3.25%, the refinancing rate to 3.75% and the marginal lending rate to 4%. This is the first set of hikes that have not been half a percentage point in size, which would indicate that the ECB is close to ending its tightening of monetary … [Read more...] about ECB: more work required to tame inflation
The EU’s “stick approach” to climate action: CBAM
The European Union is set to strengthen its climate mitigation framework with the adoption of the first carbon border tax in the world targeting the carbon content of imported products. This innovative policy measure, called the Carbon Border Adjustment Mechanism (CBAM), is due to launch in October 2023 and set to become a key pillar of European climate policy. The EU is … [Read more...] about The EU’s “stick approach” to climate action: CBAM
How to Lose Reserve Currency Status
The Incan and Roman societies disappeared, the Ottoman Empire fell apart, the United Kingdom saw the pound lose its reserve currency status. So, anyone who says the US, and the dollar, couldn’t face the same fate doesn’t pay attention to history. The question is: will it? Russia, China, Brazil, and others, including Saudi Arabia, all seem to think they can find a way to … [Read more...] about How to Lose Reserve Currency Status