Tag: global economy

Representing 75-80% of a portfolio, the core public equity and debt investments can drive the largest impact on positioning the whole portfolio on a path to meet whole portfolio climate objectives. Decarbonisation on a scale sufficient to reach global emissions-reduction targets will transform each sector of the global economy.

From Enron to the opioid scandal, an explosive, deeply-reported exposé that shows how McKinsey's has made the world more unequal, more corrupt and more dangerous over the last sixty years. McKinsey & Co. earns billions of dollars in fees from major corporations and governments who turn to them to maximise their profits and enhance efficiency.

The future is never set in stone, but it may be paved by technology. The International Monetary Fund (IMF) recently forecast that growth of the global economy will slow to 3.2% this year, down from 6.1% in 2021, and to an even lower 2.9% in 2023. This can be attributed to lasting effects of the pandemic, fallouts from the Ukraine-Russian conflict, skyrocketing inflation, and rising food and energy prices.

Central banks around the world are hiking interest rates to battle rising inflation. Recessions are now expected in the US, UK and Europe in the next year. Interest rates around the world are rising at an alarming pace, as central banks admit that inflation is becoming more ingrained, rather than just a series of transient shocks.

It’s been a busy time for the US dollar. On the one hand, it has featured heavily in commentary on the future of the global monetary system. On the other hand, it has surged in foreign exchange markets. In other words, even as many commentators question the future of the dollar as global reserve currency, participants in foreign exchange markets have scrambled to buy more dollars.

Foreign exchange fluctuations can have a material impact on investment portfolio returns measured in terms of a base currency. We dedicate significant resources into understanding currencies through a range of models, backed by observations from our local teams.

There has certainly been plenty of foolishness, as a new generation of day-traders have pushed meme stocks, special purpose acquisition companies (SPACs) and cryptos to ridiculous levels. Battle-hardened investment professionals have not been immune to bouts of irrational exuberance either.

‘When one door closes, another one opens,’ as the saying goes, and this is particularly true when it comes to investments. Economic recovery is on the horizon, and while it is expected and somewhat priced in by present market activity, investors are more interested in looking at what lies ahead. And here there may be some opportunities.

Most African business leaders are more optimistic about the strength of the global economy and their organisations’ ability to grow revenues in the next 12 months than they were a year ago. Although CEOs’ confidence in their own company’s revenue prospects has rebounded, they are anxious, too: policy uncertainty, tax policy, cyber threats and over-regulation are keeping them awake at night.

The global economy has been disrupted severely by the outbreak of the coronavirus, also referred to as COVID-19. According to the World Health Organisation (WHO), the virus originated in the city of Wuhan in the province of Hubei, in China around December 2019.