2nd July 2018
Digesting or consolidating?
A lot of digesting of changed realities seemed to be going on over the course of the week, and that is even before we start to talk football – which for obvious reasons I will refrain from!
Emerging Markets: US$ and China dragging the pack down
Emerging market (EM) investments have been under strain recently. Wednesday delivered a fresh blow, as both EM currencies and equities took a dive, seemingly prompted by fears over trade tensions with the US. Every EM currency tracked on Bloomberg screens was down, while shares extended a three-day drop to 3.6%.
Businesses finding their voice
In rare concerted action, businesses and trade unions have started pressuring the government for Brexit assurances this week. The CBI and the TUC – combining with their European counterparts BusinessEurope and ETUC – released a joint statement on Wednesday calling for “pace and urgency in the negotiations” and “measurable progress”. In the unprecedented statement, the four organisations – who together represent 45 million workers and 20 million employers across Europe – urged British and European politicians to “put economic interests and people’s jobs, rights and livelihoods first.”
Corporate earnings growth vs trade concerns
With plenty of macro-economic clouds on the horizon, from uncertainties over future trade frameworks to slowing economic growth in China and emerging markets, it is worth having a look at the other end of the spectrum – the micro-economic perspective of corporate earnings.
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