Outlook
& news.

•    The latest US statistics still indicate a resilient economy despite a slowing labour market, but the lack of visibility on the impact of the shutdown is likely to prompt Jerome Powell to maintain a cautious stance.
•    There are increasing signs that the Bank of Japan is preparing to raise rates when it meets on December 19. 
•    In Europe, budgetary uncertainties in France and tensions within the German coalition are fuelling political risk, yet European indices gained further ground on hopes for a peace deal in Ukraine.

After many months of work, waiting and preciously guarded secrets, the new Gitana/Verdier designed Maxi Edmond de Rothschild was unveiled this Wednesday, December 3rd in Lorient, Brittany.

•    US economic data was mixed this week, marked in particular by a slowdown in September retail sales.
•    In the UK, the government unveiled significant tax increases which will raise its budget leeway from £9.9 to 21.7bn by 2029. 
•    With markets now factoring in rate cuts at future FOMC dates, we remain cautious on the dollar. We are also sticking with a slightly positive bias on fixed income with a preference for emerging country debt and investment grade credit.

Over the past two years, the European Union has signaled a clear strategic shift, launching a series of initiatives aimed at restoring the continent’s leadership in a sustainable way.

Europe is entering a new phase of massive investment, driven by historic decisions to rearm and modernize infrastructure, announced in particular by Germany and the European Commission. This decisive turning point is part of a broader drive towards reindustrialization, technological innovation, and economic sovereignty. 
At a time when investors are revising their global outlook and seeking to diversify their portfolios, the appeal of European assets continues to grow, supported by both structural themes and attractive valuations of eurozone companies, particularly compared to their counterparts across the Atlantic. 

•    Nvidia’s excellent results failed to stem profit taking on the Nasdaq and assuage some concerns around AI.
•    Doubts over a Fed rate cut in December only amplified market worries.
•    Volodymyr Zelensky rekindled ceasefire hopes by declaring that he was prepared to work with the peace plan put forward by the US and Russia.

- Robbert Zoet appointed Head of Private Markets Distribution
- New team to accelerate institutional growth across Infrastructure, Real Estate and Private Equity strategies

•    The end of the US shutdown failed to instil fresh optimism on financial markets.
•    However, European equities are so far proving more resilient.
•    We remain neutral on duration and cautious on equities, in particular in the US.

•    Divergent statements from Fed members regarding rate cuts are increasing market unease.
•    The US government shutdown, now the longest ever, is prompting both sides in Congress to engage in dialogue which may soon result in a compromise.
•    Across the eurozone, the Composite PMI continues to rise, and economic data has been unexpectedly positive since the end of October.

Edmond de Rothschild Real Estate Investment Management (REIM) is further expanding its European logistics and light-industrial strategy with additional equity commitments in Q3 2025 with an immediate deployment in  two strategic transactions in France. These acquisitions reflect the platform’s continued commitment to high-quality, well-located assets that offer both stability and growth potential. Edmond de Rothschild is pursuing further acquisitions in the Benelux and Germany too.

For the third consecutive year, Edmond de Rothschild Fund EM Climate Bonds has been awarded the LuxFLAG Impact label.
We are proud of this recognition, which rewards our commitment to projects that have a strong positive impact on the environment and society.
By investing in companies in emerging markets, Edmond de Rothschild EM Climate Bonds aims to support regions where investment in environmental initiatives is essential. At least 75% of the fund's net assets are invested in green and sustainable bonds, resulting in one of the first EM corporate bond funds to be classified as SFDR Article 9.
At Edmond de Rothschild, we are committed to working towards a better world by promoting responsible financial practices and supporting projects that have a positive impact on society and the environment.

•    The Fed and the Bank of Canada have cut their rates by 25 basis points, while the Bank of Japan has postponed its next rate hike.
•    Jerome Powell doused hopes for another move down in December by revealing that the committee had rarely been more divided on growth/inflation prospects. 
•    France saw third-quarter GDP rebound by 0.5% so the government's full-year forecast will be met.