Prospettive
& attualità.

Edmond de Rothschild announces the appointment of Monika Vicandi as Chief Risk, Legal & Compliance Officer as of 15 January 2025.

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

•    The latest developments in Europe have failed to improve political visibility.
•    In the US, the economy is still proving resilient.
•    We are sticking with our tactically positive stance on equities with the accent on the US and China. Our strategic view on investment grade credit is unchanged.

As expected, the ECB cut its deposit rate by 25 basis points.

In China, the lack of concrete details from Beijing regarding economic support measures disappointed investors, which weighed on the stock markets. 

In the United States, the release of inflation statistics held no surprises, with the CPI index aligning with expectations.

Edmond de Rothschild AM appoints Vianney Hocquet as Hybrid Corporate Debt Portfolio Manager, effective December 11th, 2024.

Overweighting US equities has become a consensual choice that nobody can deny today. This position is however likely to change during the coming months.

The theme of resilience, i.e investing in companies able to withstand further disruptions to the global production chain and a firmer pursuit of sovereignty and security, now occupies a central place. 

In the bond markets, we are unwinding our overweight on emerging bonds pending the arrival of the Trump administration, and increasing our exposure to subordinated financial bonds and corporate hybrids.

In France Michel Barnier’s government fell, ushering in a fresh bout of uncertainty. The technical government option now seems to be the most likely scenario. However, peripheral eurozone countries are enjoying some momentum, which has offset the negative impact of French and German difficulties.

Economic indicators in the US are still buoyant but less so as the economy gradually returns to normal.

In China, the situation is improving but gradually, with the Caixin manufacturing PMI rising for the second month running.

The fifth edition of the Trophées de la Finance Responsable, organised by Investissement Conseils magazine, took place in Paris yesterday. For the third year running, our Edmond de Rothschild SICAV Euro Sustainable Equity strategy, invested in eurozone equities and classified as ‘Article 9’ SFDR, won two awards:

- 1st prize in the ‘Eurozone Equities’ category
- 2nd prize in the ‘Carbone4 Finance Climate Prize’ category

We would like to warmly congratulate our management team dedicated to European equities, as well as the SRI team, for this award, which underlines the quality and relevance of our SRI approach.

Political tensions in France and also in Germany are inevitably weighing on PMIs.

Eurozone inflation has been slowing so the ECB can continue to reduce rates. 

Economic activity in the United States remains strong, while in Japan, inflation has resumed its upward trajectory.

The eurozone is still suffering from the conflict’s consequences and energy prices in particular are taking a toll as we enter winter.

The ECB is coming under increased pressure to ease its monetary policy and put a brake on the economic slowdown.

In Japan, the chances of the central bank tightening monetary policy are mixed.

As economic growth shows signs of overall resilience and interest rates begin to normalise, the High Yield market is now supported by a more favourable  environment.

Alexis Foret, Head of High Yield at Edmond de Rothschild Asset Management (France), believes that bonds in this segment – with their attractive yields and rising average coupons – have all the characteristics to cater to investors’ every need.

The Republicans, under the leadership of D. Trump, have taken control of the House of Representatives.

Germany is preparing for political upheaval with a vote of confidence scheduled for December.

Markets have continued to rotate into exclusively US assets in another illustration of American exceptionalism.