Outlook
& news.

By Sébastien Cavernes, CIO Edmond de Rothschild Gestion (Monaco).

- Recent US data indicates robust economic activity and persistent inflation.
- In France, the ambitious budget proposal is causing concern among investors.
- In China, equity markets are experiencing a consolidation phase following significant gains in recent weeks.

- Tensions in the Middle East have led to a surge in oil prices.
- Jerome Powell confirmed that the Fed plans two rate cuts by the end of the year.
- The eurozone is under pressure due to warnings in the automotive sector and announcements of tax increases in France and Italy.

 - China unveiled a bigger-than-expected stimulus programme.
 - This week’s US data continued to reflect buoyant growth.
 - In the eurozone, doubts are increasingly settling over the sustainability of growth.

Benjamin Melman, our Global CIO AM, shares his insights and key strategies for the coming months.

Interview with François-Xavier Vucekovic, CIO, Edmond de Rothschild Private Equity, Jean-François Marco, Partner, TIIC and Manuel Cary, Partner, Managing Director, TIIC.

 - The Fed cut its rates by 50 bp at the meeting on 18th September.
 - The Bank of England chose to leave rates unchanged due to underlying inflation.
 - Data in China confirmed that domestic and foreign demand was being hindered by structural factors.

Edmond de Rothschild announces the opening of an office in the Ghent region, its third location in Belgium, consolidating its strategy of expanding in regions with high economic potential.

Edmond de Rothschild Real Estate Investment Management (REIM) announces that it has appointed Lennart Weinhold as Managing Director in the Real Estate Debt team, effective September 16, 2024.

Last May, our overweight was focused on both US and European equities, with a preference for the Big Data, healthcare and European small caps sectors. On the fixed income markets, we decided to maintain our overweight, especially as oil prices had begun a downward correction that weighed on inflation expectations. At present, signs of economic weakness are multiplying in most G20 countries.

 - There has rarely been so much uncertainty over central bank intentions.
 - Recession risks have risen sharply.
 - Significant doubts about central bank responses and the uncertain outcome of the U.S. election have led us to tactically reduce risk in equity markets.