According to Jamie Dimon, CEO of JPMorgan Chase, America’s economy is currently looking “pretty good.” However, it is likely that there will soon be a “downturn,” with the economy “certainly dipping into a recession.”
In an article written by Troy Tanzy and Daniel Rangel, it was stated:
“Core inflation was back above 2% for March, according to the latest inflation report which came out Wednesday morning. The Consumer Price Index (CPI) was down slightly in March (down 0.1% month over month), but the core inflation rate rose 0.2% for the month. According to TD Economics, a 4.9% drop in gasoline prices held the CPI level relatively constant to slightly down.”
This marks a rise in inflation which is “reflective of higher prices in housing, medicine and food.” It is also expected that Federal Reserve officials will increase rates another two more times (at least) this year with the observation of the continued escalation in inflation to its target rate. However, with inflation continuing to accelerate, rates will be raised in accordance by the Fed, partly as a defensive tactic against a possible recession.
With any kind of political tension comes the potential for delay in progression of the achievement of economic goals. At least, that could be the case for decision-making (and deals) between America and China. According to ABB CEO Ulrich Spiesshofer, with America and China’s recent threat to fresh import tariffs, a “quite unique” state of affairs has emerged. This, at a time when finally – for the first time in 10 years – there is “stability and growth across various markets.”
However, if a trade war occurs – or even if there is anticipation of one – things may change. As Spiesshofer said:
“So, I’m concerned, I would be concerned, if we get a lot of dampening effects and uncertainties. We need certainty, in terms of decision-making, we need certainty for investment climate, because altogether, I think the underlying demand is there on the consumer side.”
As such, the US has launched a complaint. In a statement to the World Trade Organization it said:
“China appears to be breaking WTO rules by denying foreign patent holders, including US companies, basic patent rights to stop a Chinese entity from using the technology after a licensing contract ends. “China also appears to be breaking WTO rules by imposing mandatory adverse contract terms that discriminate against and are less favourable for imported foreign technology.”
Meanwhile the Ministry of Commerce in China has committed to being “fully prepared to defend [its] legitimate interests [remaining] confident and capable of meeting any challenge.”
In the Arts and Cultural Production Satellite Account (ACSPA) – a study put together by the National Endowment for the Arts (NEA) in collaboration with the US Bureau of Economic Analysis (BEA) – the arts were recognized as having a hugely positive impact on America’s economic success. Contributing a staggering $763.6 billion annually to America’s economy, this is ahead of industries one might assume would be heavy on the economic impact factor such as agriculture and transportation.
In addition, because of the arts, 4.9 million people have jobs throughout America with earnings totaling a value of $370 billion. As well, there was $20 billion more in exports than imports resulting in a very “positive trade balance.”
The ACSPA tracked the economic impact year on year of arts and cultural production from 35 commercial and nonprofit industries. As Jane Chu, NEA Chairman said:
“The robust data present in the Arts and Cultural Production Satellite Account show through hard evidence how and where arts and culture contribute value to the economies of communities throughout the nation. The data confirm that the arts play a meaningful role in our daily lives, including through the jobs we have, the products we purchase, and the experiences we share.”
In this video, Mike Maloney and Stefan Molyneux discuss why the US dollar will collapse.
On March 8, women around the world called for more equality for women, with a particular emphasis on wages and rights. Lima Charlie’s recent blog discussed the impact that this will have, with data from the Boston Consulting Group which found that:
“between 2010 and 2015, private wealth held by women rose from 34 trillion dollars to 51 trillion dollars. As a portion of all private wealth, women’s wealth also experienced an uptick from 28% to 30%. In just two years, women are projected to hold 72 trillion dollars, or a little under one-third of the total.”
What kind of consequence, Lima Charlie asks, does this have for “risk-assessment and asset management?” Quite significant ones as has been recognized by the IZA Institute of Labor Economics considering the “stark differences in risk attitudes between the genders: while women are more likely to purchase and retain, men are usually more ready to buy rapidly. Investors view this as a tendency to consider risk more carefully among the former, than the latter.”
In another article in The Economist, this belief was supported with the conclusion that this will generate:
“big implications for asset managers. Take risk-profiling. Surveys show that men’s attitudes to risk are typically more gung-ho, whereas women are more likely to buy and hold, which leads advisers to conclude that men are less risk-averse. And men are more likely to say that they understand financial concepts, which might seem to suggest that they are more financially literate.”
Plus, Morgan Stanley found that while 67% of men were interested in sustainable investing (financial returns with social/environmental goals), that figure was 84% for women.
Check out Patrick Bet-David’s latest video on entrepreneurs. On his YouTube channel Valuetainment, Bet-David discusses what he believes to be crucial for success: Intuition, putting money on the right people.
See more here.
There has been a definite wave of optimistic records for hedge funds. In particular – according to a recent CNBC report – this has been the case for macro strategies. In the first month of the year they pulled in $6.87 billion. Long/short equity funds have likewise had a good time with $4.16 billion being pulled in the same month.
Having said that, when we look at 2016 in comparison, the news might not be quite as celebratory. The amount pulled then was a staggering $111.64 billion. Nonetheless, as we are now finally witnessing an improvement in performance. As such investors are returning to hedge funds with $14 billion being pulled in January of this year which is half the amount for the entire 2017. And that’s significant especially since such a substantial escalation has not happened since January of 2014!
So for those pleased with this news and looking to start a hedge fund investment career, what should they look out for? According to a recent analysis by Tabby Kinder in Financial News London, we have learned that the “small, nimble funds” are the way to go as they can “deliver higher returns…because they are able to trade less liquid stocks than some of their more established peers.” However, it is not as simple as that since small funds have a harder time “absorbing huge sums of capital [which] has kept them out of reach of many large institutional investors.”
Hopefully though – if the banking and investing experts are to be believed – this is changing, slowly.
While the beginning of 2017 did not look all that good for the emergence of new hedge funds in Asia, the tables seem to be substantially turning. One of the ways in which they are doing this according to a recent Bloomberg article, is by “striking out on their own.” Examples of this action include: Moore Capital Management, Millennium Management and Soros Fund Management.
An individual who has made it in startups in China is also launching his own hedge fund. Using $100 million of his own money, Qian Yongqiang who has been successful in tech start ups and Chinese education is now established QQQ Capital Fund. Based in Singapore, the firm will begin trading in April as a long-short fund in education, technology and tourism. The annul return being targeted is 15 percent. at the age of 21, Qian was the co-founder of New Oriental Education & Technology Group Inc. which today has a market capitalization of $14.7 billion.
According to Global Co-Head of Prime Finance and EMEA Head of Equity Trading at Deutsche Bank, Ashley Wilson:
“Investors appear more optimistic in their outlook for Europe and Asia. Our [Deutsche Bank’s 16th annual Alternative Investment] Survey indicates that investor interest in European hedge funds has more than doubled year on year and that thirty per cent of respondents are planning to add exposure to Asia. These regions provide more alpha opportunities across multiple countries with diverse market structures.”
The Sustainability Yearbook 2018 (published by RobecoSAM) recently recognized the Newmont Mining Corporation for top level performance in the mining sector. This is the fourth consecutive year the corporation has been ranked by RobecoSAM (which determines the Dow Jones Sustainability World Index’s composition) for such excellence.
The net income report for 2017 of the Commercial Bank of California showed a 44 percent increase from 2016. The figure for this year – $4,329,000 was substantially higher than the $3,004,000 2016 figure. Total net interest income also increased over the last year by 16 percent from $25.9 million to $30.0 million between 2016 and 2017. According to President and CEO of Commercial Bank of California Ash Patel:
“2017 represented another year of achievement for Commercial Bank of California. The strengthening of our performance continued in 2017, as we recorded a significant increase in profitability and solid growth in our balance sheet.”
Meanwhile Immunovaccine investors have also had cause for celebration. Apart from the firm being ranked among OTCQX Best Market’s top 10 best performing companies (no. 6) the return to investors the company achieved was 274%. It also comes in the top place for biotechnology companies on that list. Within its clinical program, R&D, finances and operations, it has made substantial progress in 2017.
There has been a steady increase in investments Singapore has made around the world over the last few years. For example, while the figure in 2011 was $9 billion, by 2017 that had reached $19 billion.
America has not been the only region that has become attractive to Singapore although it is the area that is part of Singapore’s “global strategy.” In commercial property, Singapore put $1 billion into the US, which was even greater than the amount the Chinese invested. According to a recent article by Forbes contributor Danielle Keeton-Olsen, this is “a clear sign of the nation’s steady rise in global investments.”
For Singaporeans wishing to spread their wings in the legal field, the process is about to get a lot easier. Thanks to a collaboration between the Law Society of Singapore, International Enterprise Singapore and the Ministry of Law, a program was just launched at the beginning of this month. The Lawyers Go Global program is meant to give lawyers a boost in expanding their network outside of Singapore, providing trips, training and branding.
In addition, it is hoped that this will beef up Singapore’s status as a global legal hub. As Indranee Rajah, Senior Minister of State for Law and Finance noted, this is helping lawyers to expand the market and giving lawyers greater options of additional places to offer their services, again impacting the overall Singaporean global investment industry.