Outlook
& news.

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

The rise in interest rates is above all a godsend for European banks. Since the financial crisis they have battled to avoid destroying value, in other words to make sure that their profits exceed the cost of capital. This problem was instantly resolved by the return of positive rates.

2022 has seen record deployment of €1.5bn across 30 deals. Energy transition has been represented more than ever. Shirley Chojnacki, Investment Director - Deputy ESG Officer, gives some examples of these deals and why BRIDGE invested in these projects.

At the ECB forum in Portugal, ECB chair Christine Lagarde once again urged caution over the chances of core inflation falling rapidly.

Jean-Philippe Desmartin, Head of Responsible Investment, details four major challenges for the next few months: regulation, transparency, methods and data, biodiversity.

With its culture of entrepreneurship and innovation, Edmond de Rothschild Asset Management finances the real economy through its investments, guiding and supporting entrepreneurs at key points in their operations and over the long term, whether their company is listed or not.

Central banks have been in the spotlight over the last two weeks. When Fed chair Jerome Powell appeared before the House of Representatives this week, he minimised the idea of a pause and instead promised more hikes to come if the economy failed to slow down faster.

Europe is accelerating its transition to a low-carbon economy. In 2021, the European Union revised the emission-reduction targets of its climate plan from 40% to 55% of 1990 levels, to be achieved by the end of the decade.

Equity markets are now simply ignoring the Fed and the ECB. Indices have kept on rising and are now above levels seen in March 2022 when the Fed launched its fastest tightening cycle in 40 years.

At its June 4 meeting in Vienna, OPEC agreed to rein in supply amid a slowdown in the global economy.

Buoyed by the strong enthusiasm for artificial intelligence, Nvidia entered the very closed circle of giants with a market capitalisation of more than USD 1,000 billion on 30 May.

Edmond de Rothschild Corporate Finance has advised Aquila Group, a French real estate asset manager, in the opening of share capital to Catella.