Perspectivas
y actualidad.

Risk assets have lost ground since the beginning of August. As August 15 is a national holiday in some countries, thin summer trading was accentuated as bond yields revisited recent highs and worries mounted over China’s property sector.

So far, economies have been resilient. There has been no significant rise in unemployment and both consumption and corporate profits are holding up.

US inflation was expected to fall back but not as much as it did. Over a month, it weakened to 0.18% with core inflation at 0.16%. Base effects and a lull in transport and property prices were behind the drop.

Our education system, indeed, the very idea of education, is rooted in decades, or even centuries, of tradition and shared experiences. The recent public health crisis saw the introduction of digitalisation of education - in a necessary precipitation. Even, this very specific context did not bring any radical changes.

The first half was full of surprises for investors. Equity market returns were much better than expected. Most people expected a recession but it failed to have much impact and the US economy and its financial sector proved particularly resilient to a banking crisis which could have been much more serious.

With the July 4 holiday in the US and the second quarter earnings season imminent, it could have been a quiet week. Instead, volatility resurfaced on both equity and bond markets as advanced indicators unsettled investors.

The first half was full of surprises for investors. Equity market returns were much better than expected.

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.