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Volatility resurfaced this week on concerns over regional banks in the US after New York Community Bancorp ramped up provisioning for bad loans amid a decline in lending prospects. 

Between the first COP in Berlin in 1995 and the COP28 in Dubai in late 2023, the environmental transition has gathered pace. Although much work still needs to be done, new dynamics are at work in order to achieve the ambitious climate goals.

We were rather sceptical over the COP28 and what it would deliver. But we were proven wrong, notably thanks to the discreet, effective, and surprising coordination between China and the United States. Importantly, the final agreement makes the first ever mention of a gradual phasing out of fossil fuels by 2050.

Bond yields have risen sharply since January 1st. The yield on Germany's 10-year Bund has added 30bp, ending an almost uninterrupted period of easing since November 2023.

Benjamin Melman, Global CIO Asset Management, presents his convictions for 2024.

He details the opportunities to be seized on bond and equity markets, as well as the investment themes to be favoured.

Artificial intelligence (AI) is revolutionising how we manage most of our activities due to its ability to quickly analyse a huge amount of data, solve complex problems, learn and find solutions. From finance to research, agriculture and marketing, it looks set to gradually make its way into every field.

More than half of the world’s countries will be holding elections this year. Taiwan kicked off last Saturday by electing an independence champion from the DPP, the party which has been in power since 2016. China reacted by organising fresh military manoeuvres around the island.

Technology is rightly regarded as one of the promised lands of innovation, since this is where much of tomorrow's world is shaped. Brimming with start-ups and highly creative SMEs, this field is also an attractive investment sector for private equity, as financing needs are high and growth prospects are often attractive.

Oil prices were partly responsible for shifts in other asset classes, mainly at the beginning of the week as investors waited for US inflation data.

Luxembourg, Hamilton, 18 December 2023 - Edmond de Rothschild and Apex Group are pleased to announce that they have reached a strategic agreement. 

In a radical shift, the latest Fed meeting opened the door to rate cuts. Nobody on the rate-setting committee now expects a hike in 2024 and the dot plot average is for a 75bp cut by the end of the year. 

Now that markets are expecting rate cuts in 2024, investors will be looking at the economy, and jobs and inflation data in particular, to back up these expectations.