The Intelligence Report – 14 March 2019
In a world striving for greater sustainability, investment in coal – be it mining or power generation – should be much more selective, hence our new coal investment policy. Also in this issue: how to navigate markets as they swing between the impact of news on the fundamentals and adjustments in central bank liquidity; what to make of the trends in US inflation; and our assessment of the relations and economies of China and the US.
|Divestment from coal: our new policy|
|Reducing CO2 emissions from coal is the single most effective way of moving towards an energy system consistent with the Paris Agreement; which is why we have drafted a new coal policy for our portfolios.|
|Navigating the shift from fundamentals to liquidity|
|Investors face a regime change towards lower investment returns and more financial market volatility as a decade of generous, QE-related central bank liquidity comes to an end.|
|How meaningful is the pick-up in pro-cyclical inflation?|
|US pro-cyclical inflation has spilled over from housing into other sectors, including communication services. Telecoms’ future contribution to inflation will depend on the pace and price impact of tech progress.|
|Webcast: Focus on US and China relations|
|The relationship between China and the US will be central to the global economy for years to come. What do we expect to see when it comes to issues such as bilateral trade and the prospects for their economies?|
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The Intelligence Report appears roughly every two weeks and offers investors insights into the topics that we believe matter to them from around BNP Paribas Asset Management. Contact your local representative for more information.
The uncertainty around the Sino-US trade requires robust multi-asset portfolios.We detail our approach. Elsewhere we explore the opportunities the boom in life sciences is creating in listed real estate and explain how we assess the strength of business models and corporate governance in a world where cyber-security risks abound. The Intelligence Report will take a summer break for the next month. Happy holidays to all our readers!
In this edition of Our Insights, read about how an alliance between global research universities is ratcheting up the quality and quantity of research into sustainable finance. We also explore how the ‘plastic revolution’ is progressing, present a multi-factor strategy for US equities and outline our asset allocation outlook.
Geopolitical risks, shifting central bank stances, Goldilocks looking fragile. The factors to consider when allocating assets are in constant flux. One asset allocation theme that should hold good longer-term is the transition to a lower carbon economy.