Featured Insights
Central Bank Watch
Fed on hold - lessons from Japan?
The US Federal Reserve (Fed) left interest rates on hold on Wednesday, arguing that while the case for a hike has strengthened, it still needs more evidence. Could Japan’s struggles be a factor?
The Fed, the ECB and Rates
Rates are roughly where they should be for the moment, given sluggish growth, says Brandywine Global's David Hoffman
Municipal Market Update: August
Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.
Biotech and more
Finding Value In Stocks Now
Investors who focus on US stocks' overall price level are overlooking the values available in health care and other sectors, says Evan Bauman of ClearBridge Investments.
International equities:
Finding A Comfort Zone
For US investors apprehensive about international stocks, an investment process focused on low volatility, dividend income and currency hedging may offer a greater level of comfort, notes Mike LaBella of QS Investors.
Chart of the Week
Source: Bloomberg, as of 8/31/16. Past performance is no guarantee of future results. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
US economy: Help wanted
The low labor force participation rate helps explain why the Fed is cautious about raising rates even with a 4.9% unemployment rate.
Market Snapshot
Broken arrow: Abenomics and the Bank of Japan
Hitting the target with an empty quiver?
Japan tries to jumpstart growth with a new twist; the Fed holds hawkishly; and OPEC stalwart Venezuela imports oil from the U.S., its arch-enemy.
Insights
Hitting the target with an empty quiver?
Broken arrow: Abenomics and the Bank of Japan
Japan tries to jumpstart growth with a new twist; the Fed holds hawkishly; and OPEC stalwart Venezuela imports oil from the U.S., its arch-enemy.
Mid-Week Bond Update
Japan twists, Fed doesn’t shout
Global bond markets gave a lukewarm welcome to the Bank of Japan’s new approach to monetary policy, but cheered the US Federal Reserve leaving rates on hold.
Watch what they say, not what they do...
The Fed: Watch the words, not the numbers
Fed-watchers will be focused on the week's press conference and the wording of the accompanying announcements, looking for signs of shifting consensus among the voting members of the FOMC. A looming question: are the world's central banks backing away from monetary cures for ailing world growth? Meanwhile, the oil glut deepens as world demand softens and the taps stay open.
Mid-Week Bond Update
ECB spoils bond party
Global bond markets plunged over the past five trading days after the European Central Bank (ECB) refrained from expanding its monetary stimulus programme. Investors, who have enjoyed a years-long bond rally supported by loose monetary policy in the US, Europe and Japan, now fear the stimulus packages may be coming to an end: the US Federal Reserve (Fed) has repeatedly signalled its willingness to raise rates this year; the ECB stayed put last week, and the Bank of Japan is reviewing its own programme.
Martin Currie on global equities:
World Tour
Despite challenging conditions in many world markets, Martin Currie remains committed to unearthing value for investors. Whether in Asia, Japan, Europe and Emerging Markets, there are companies whose future prospects may be out of step with current valuations – and potential opportunities for gain as time unfolds.
Draghi: Steady as she goes
European Central Bank: If not now, when?
Was Mario Draghi simply being optimistic about Europe's prospects -- or sending a message to Europe's governments about the need for fiscal measures? Meanwhile, U.S. job demand was strong earlier this summer, Swiss insurers are starting to cover physical cash due to negative rates, and tin shorts are getting squeezed.
Mid-Week Bond Update
Soft data damps bets on US hike
Global bond markets cheered a battery of soft US data - manufacturing, services, home prices and job growth -, which dampened market-implied expectations of a rate hike later this month. Tuesday’s non-manufacturing August survey came in especially weak: it was the largest single-month decline since 2008 and the lowest level since 2010. The US dollar sank and, once again, prospects of lower-for-longer interest rates pushed up traditional risk assets, such as Emerging Markets (EM) and High Yield. Most corporate spreads tightened, while US loan prices continued to rise after default data hit a 17-month low in August. In Europe, a French drug company and a German maker of detergent and other household goods sold bonds at negative yields – the first European companies to do so outside the financial sector.
Slim pickings in the August jobs report
US jobs and the Fed: Ho hum
Despite the slight disappointment, markets seemed to say there wasn't enough to go on in the latest figures to tip the odds in favor of a September rate hike. Meanwhile, container shipping may be having its Lehman moment, and the IMF is lobbying for fiscal largesse at the G20 summit.
Trends in investment real estate:
The Rise of "Creative Office"
Office spaces designed to facilitate creativity and collaboration should compete successfully against traditional properties going forward, note Rick Schaupp and Bohdy Hedgcock of Clarion Partners.
As planned, less than meets the eye
The Fed: Jackson Hole in one
Fed Chair Janet Yellen delivered a media-friendly quote while staying mostly non-committal on the timing of the next rate hike – no small achievement. Meanwhile, more good news arrived about 2Q in the U.S. and the ECB indirectly suggested that the most helpful boost to Europe's economy would be fiscal rather than monetary.
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