The imminent party election will be crucial in determining this major Emerging Market’s future.
From an economic perspective Canada and Australia share some common features, but we would caution that the performance of the two economies is substantially different than generalisations would suggest.
Even as the situation in Germany to form a new government is difficult, financial markets have reacted very mildly to the uncertainties.
We think it is unlikely that May will be replaced within her own party. This is because there is a lack of an heir-apparent, and the Conservative Party would be extremely reluctant to even slightly increase the risk of another election.
Just as politics in other developed countries have recently taken on a more populist and/or anti-capitalist tone, so too has New Zealand’s.
To help bridge the gap between the perceived unreliability of Chinese statistics and the importance of analysing the world’s second largest economy, we look for measures which have less potential to be manipulated.
Most bond index providers have started to recognize China’s financial market liberalisation and reform efforts. We think it is only a question of time before they are included in the main benchmark indices.
A separate allocation to Asia IG offers European investors a way to mitigate risk within their EMD exposure.
Our senior fixed income portfolio manager in Singapore explains why he is bullish on ASEAN currencies for the long-term.
Despite geopolitical risks and less dovish central banks, the Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.
Despite the uncertainty surrounding the time it will take before the formation of a new government, we do not think there is risk of major policy change in Germany. The election outcome, however, will likely weigh on the aspirations of France’s Macron for deeper Eurozone integration.
Our London-based Global Credit Portfolio Manager lays out the scenarios of the upcoming German election and its ramifications for select German credits.
China’s dual goals of deleveraging and maintaining strong growth may not necessarily conflict, but they certainly pose a delicate balancing act for the government.
The rapid development of the Asia Credit markets provides new opportunities to improve the risk and return profile for investors.
The Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.
Changing perception of ESG’s performance impact: An active ESG approach is now regarded as a catalyst for outperformance.
While highly unlikely, we examine the potential impact on Japan of a major crisis on the Korean Peninsula.
We believe that Abenomics is working, however we feel that its success cannot be determined by viewing government policy frameworks in isolation.
Steve Williams, the Portfolio Manager responsible for Green Bonds in Nikko AM’s London office, examines how this burgeoning asset class is likely to develop into a mainstream part of global fixed income portfolios.
“Any major crisis in the Northeast Asian region, especially one involving a crisis within Japan’s borders, is likely to be handled very aggressively by the Bank of Japan (BOJ), with it bending the rule-book as much as the Fed did during the Global Financial Crisis or as the ECB has done in the past five years.”
John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com