Perspectieven en actualiteiten.

Talks between Moscow and Kiev were in focus over the week but they failed to secure a ceasefire despite Ukraine’s president giving up his ambitions to join NATO.

The Edmond de Rothschild Group reported strong and well-balanced growth across all businesses and regions in 2021, reflecting the solidity of its business model and the confidence of its clients.

European equities enjoyed a technical rebound over the period as the Eurostoxx50 volatility index (V2X) fell back to 41 after hitting 50 at the beginning of the month.

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.

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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.