Liquidity and momentum shroud the rotation debate

Date published: 07 January 2020

Michael Mackenzie

Liquidity and momentum are powerful drivers of sentiment for equities and other risk assets. Such a combination holds sway at present, via supportive central banks and low government bond yields, helping to explain the resilience of markets whenever shocks such as the latest bout of political tension intrude.

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Forecasting the world in 2020

Date published: 27 December 2019

Source: FT.com

Brexit was not stopped, populists made smaller gains than expected in May’s European parliament elections, and the S&P 500 beat our — and most other people’s — expectations. Along with Brazilian growth falling below the year before, the FT’s forecasting team got those predictions wrong for 2019, though Philip Stephens last year admitted he offered his forecast that Brexit would be reversed “as much in hope as expectation”.

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Nuns berate SEC over planned shareholder rules

Date published: 01 December 2019

Attracta Mooney

Source: FT.com

Two groups of nuns, including one that puts living a life of peacemaking at the centre of its work, are gearing up for a fight with the US financial regulator over proposed shareholder rules.

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Global regulators launch inquiry into leveraged loans

Date published: 07 March 2019

Sam Fleming in Washington

Link To FT.com: https://www.ft.com/content/2cb614ee-4067-11e9-b896-fe36ec32aece

The Financial Stability Board, a top global rulemaker, has launched an examination of parts of the $1.4tn leveraged loan market, as officials intensify scrutiny into potential financial stability risks surrounding corporate debt.

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For stocks, it’s corporate buying that really matters

Date published: 19 February 2019

John Plender

Link To FT.com: https://www.ft.com/content/d6ec0bb8-343b-11e9-bb0c-42459962a812

We know that changes in the household sector balance sheet, particularly in relation to the balance between savings and consumption, matter greatly for the real economy. That said, what is unusual at present is that the exposure of US household balance sheets to the stock market is running at record levels. This is an under-acknowledged part of the explanation for the recent weakening of economic data and especially the spectacular decline in retail sales.

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‘We need to rethink conventional wisdom about pay’

Date published: 14 February 2019

Madison Darbyshire

When Labour’s John McDonnell called for greater worker representation late last year as a way to curb top executive pay, the UK’s shadow chancellor appeared to hit a nerve.

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Virgin Trains USA halts plans for initial public offering

Date published: 12 February 2019

Andrew Edgecliffe-Johnson and Mark Vandevelde in New York

Virgin Trains USA has abruptly halted its plans for an initial public offering, days away from the end of an investor roadshow that it hoped would raise $510m to expand its nascent passenger rail service and value the lossmaking business at $3bn.

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Brexit-blemished UK assets look cheap — but investors are wary

Date published: 01 February 2019

Laurence Fletcher

Fund managers seem unanimous: sterling and UK stocks look cheap. But many are so perplexed by the political wrangling over the UK’s exit from the EU, that they are finding it hard to pluck up the courage to buy.

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Asset managers count the cost of the big squeeze on fees

Date published: 01 February 2019

Richard Henderson and Robin Wigglesworth

If investors in asset managers were hoping for some relief this week, they did not get it. A string of lacklustre results from some of the world’s biggest asset-management firms highlighted the big squeeze on fees across the $89tn investment industry.

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‘Quiet diplomacy’ the weapon of choice for passive funds

Date published: 15 October 2018

Chris Flood

Archbishop Justin Welby’s attack on Amazon’s tax affairs in September prompted a torrent of criticism after it emerged the Church of England’s pension fund holds shares in the online retailer.

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Investment heavyweights revealed as UK’s most rebellious fund managers

Date published: 06 October 2018

Attracta Mooney

BlackRock, Legal & General Investment Management, Aviva Investors and UBS Asset Management have emerged as the biggest scourge of British directors.

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