Breaking News

5 new cases of Covid-19 on 11 August brings total in Monaco to 138: 5 hospitalised, 10 home monitored, 113 cured, 1 resident death

Markets weekly

Markets weekly

By Cassandra Tanti - January 27, 2020

After a busy two weeks of quarterly corporate earnings data, this week has some key economic data points to watch out for.

On Tuesday, the January Nationwide house price index data for the UK is published, which may reveal the extent of any initial post-election bounce in activity in the housing market.

Undoubtedly, top of investors’ calendar is the US Federal Reserve (Fed) and the Bank of England (BOE) policy meetings on Wednesday and Thursday respectively. Whilst the market believes that the Fed has accomplished its “insurance cut” mission, and will leave interest rates unchanged, predicting the outcome of the BOE meeting is tougher given weak pre-election data and lack of clarity since.

The fourth-quarter (Q4) flash estimate of US gross domestic product (GDP) is revealed on Thursday. On a seasonally-adjusted annual rate basis, consensus is for an unchanged reading from the previous quarter at 2.1%.

Finally, eurozone preliminary Q4 GDP data is announced on Friday and will show whether growth has started to recover since news on the phase one trade deal and Brexit uncertainty reduced. Subdued inflation remains a key talking point and the week ends with January’s flash eurozone harmonised index of consumer prices and December’s US core personal consumption expenditure index data. Consensus for the latter is for a 0.1pp rise to 0.2% on a month-on-month basis.

Climate change: time for investors to evolve

The last decade was the warmest since records began in 1850 and projections anticipate that temperatures will get hotter still.

Climate change has become a priority for many financiers, business leaders and politicians alike. For instance, climate change is a focus topic at this month’s World Economic Forum in Davos. However, solutions to one of the world’s most pressing challenges may not be emerging fast enough.

The increase in average temperatures is the primary indicator of climate change and driver of many of its effects. Since 1850, 17 of the warmest years on record have occurred in the last 18 years. The world is on average one degree Celsius hotter than it was between 1850 and 1900 (see chart). An increase of one additional degree to average annual temperatures is seen as the threshold to “severe, widespread, and irreversible” effects of a climate breakdown.

In addition to the temperature record, ocean temperatures last year were the highest on record – leading to more ocean acidification, sea-level rise and extreme weather. Both of these measures indicate that the “climate crisis” has reached a new level and rapid measures are needed to speed up the process of cutting greenhouse gas emissions.

With climate seemingly inevitable in an uncertain world, investors can no longer disregard the risks when making investment decisions. Industries and companies working towards reducing the impact of climate change, accelerating energy transition and improving infrastructure are likely to profit the most from increased spending and accommodative policy measures focused around climate change.

For more information contact Barclays Private Bank in Monaco by clicking here or on +377 93 15 35 35

 

 

shares
SHARE
Previous articleThierry Neuville’s electrifying win at Monte-Carlo Rally
Next articleGovernment urges travellers to avoid coronavirus-affected areas

daily

August 11, 2020 | Business & Finance

Monaco International Film Festival gets new president

Stephanie Horsman

Edward Sylvan, co-founder of Sycamore Entertainment Group, is the new president of The Monaco International Film Festival, paving the way for the local festival to leap to the next level.

0
August 10, 2020 | Business & Finance

Seven companies who turned Covid into cash

Stephanie Horsman

This year’s epidemic has been catastrophic for many businesses, but some companies have managed to turn hefty profits despite the downturn. Here are the top seven.

0
August 5, 2020 | Business & Finance

Further boost to Monaco’s digital security

Cassandra Tanti

Monaco Vidéo Electrique has just been awarded its security qualification, enabling it to assist the Principality in its digital security strategy.

0
August 5, 2020 | Business & Finance

Will the government use the CRF this Covid-year?

Stephanie Horsman

The Constitutional Reserve Fund (CRF), Monaco’s “nest egg”, sat at a whopping €5.7 billion in assets at the end of last year.

0