Outlook
& news.

Marie Jacot-Cardoen, Global Head of distribution, has been appointed CEO of Edmond de Rothschild Asset Management France as of 8 March 2022.

Edmond de Rothschild Real Estate Investment Management (REIM) completed another equity closing in its pan-European High Yield I Real Estate Debt Fund taking the current equity commitment in the Fund to above EUR 160 million.

The market reaction to Ukraine's invasion is currently controlled. It is difficult to accurately estimate the premium linked to the geopolitical crisis. It must currently be around 7% on European equities (with the Euro Stoxx at -11% since the beginning of the year and which was -4% before the Ukrainian crisis became a cause for concern).

Markets were already under pressure in recent weeks as Russian troops amassed on Ukraine’s eastern border and they fell sharply when Russia invaded Ukraine early on Thursday morning.

Russia’s overnight invasion of Ukraine is the worst case scenario for the Ukrainian population and a massive jolt to the global, geopolitical picture. It is also a shock to investors who were slow to consider this eventuality as a stark probability.

Geopolitical worries boosted market volatility after Washington said there was a bigger chance Russia might invade Ukraine.

Discover our convictions in video.

Central banks are split between acting to reduce inflationary pressure or waiting for the more transitory aspects of inflation to fall back unaided. In the first case, they risk jeopardising growth. In the second, low income families could see their purchasing power decline.

Inflation is now a major concern for central bankers, consumers and investors.

The Edmond de Rothschild Group was recognised in the « Best Family Office offering » category at the ninth Swiss edition of the WealthBriefing Awards.

Trading was dominated by central bank news and particularly the ECB’s drastic shift in tone. The ECB chair Christine Lagarde refused to rule out a rate increase in 2022 due to inflation looking less and less “transient”.

The environment is marked by ongoing tensions on real interest rates, particularly in the United States, triggered by a toughening of the Federal Reserve’s message, as well as the announcement of a probable implementation of a quantitative tightening policy this year (reduction of the central bank's balance sheet).