Wage growth lifts from lows; Watchful consumers

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Wage Price Index; Consumer confidence Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment fell by 1.7 per cent in November after lifting 3.6 per cent in October and rising 2.5 per cent in September. The index now stands at 99.7 (long-term average 101.7). A reading above 100 denotes optimism. Wage growth: The wage price index […]

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Thoughts on the week ahead from Steve Waddington at Insight Investment – as at 14 November, 2017

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After a relatively calm week in terms of releases, this week is packed with inflation announcements. In addition to the key US consumer price index (CPI) report on Wednesday, we also have UK CPI Tuesday. The CPI for Germany and France on Tuesday and Wednesday respectively should give an indication as to eurozone inflation on […]

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Jerome Powell a “continuity candidate”, says Principal Global Investors 

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Meet the new boss “Two days after the actual Federal Open Market Committee (FOMC) meeting, President Trump officially nominated Jerome Powell to be the new Fed chair, replacing Janet Yellen when her term expires on February 3, 2018. A relatively smooth confirmation is expected. President Trump also has four Fed governor vacancies to fill, although […]

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Weekly market update – week ending 10 November, 2017

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Investment markets and key developments over the past week Share markets were mixed over the last week with US and Eurozone shares down a bit partly due to US tax reform uncertainty and profit taking after strong gains, Japanese shares also getting hit by profit taking but still managing a modest rise and Chinese and […]

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IMF too optimistic on EM debt, says Eaton Vance

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Investors may be wise to take with a grain of salt the International Monetary Fund’s latest projections about the sustainability of emerging market (EM) debt levels, says the global investment manager Eaton Vance. The source of this advice is impeccable: the IMF, notes the Eaton Vance Global Income team. A new IMF study[1] of its own […]

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Will passive save active?

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This month, instead of a market rehash, we’ll turn to the ever-popular active vs. passive debate. Our objective is not to argue that one is better than the other – they both have merit within a diversified portfolio of strategies. Instead, we’ll explore how the growth in indexing is (paradoxically) forcing active managers to up […]

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The medium term investment return outlook remains constrained

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Key points A further fall in investment yields across most major asset classes points to a constrained medium term return outlook. For a diversified mix of assets, this has now fallen to around 6.5% on our projections. For investors the key remains to: have realistic return expectations; allow that inflation is also low so real […]

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Engineering construction at 10-year highs

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Consumer sentiment; Construction activity Consumer confidence: The weekly ANZ/Roy Morgan consumer confidence rating fell by 0.7 per cent last week to 112.6 after rising 0.1 per cent in the prior week. Confidence is just below the average of 113.2 since 2014. The estimate of economic conditions over the next year was the only sub-component of the […]

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Thoughts on the week ahead from Insight Investment

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Summary Manufacturing and soft data from the US and eurozone remains strong, supporting our pro-cyclical stance Recently when central banks have tightened policy, currencies weakened post announcement due to the dovish language contained in the statement – the UK hike this week followed this playbook Today, President Trump addresses the South Korea National Assembly, which […]

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RBA on hold for the 15th month in a row – likely to remain on hold out to late next year at least

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Once again, no surprises from the Reserve Bank of Australia which left the official cash rate on hold at 1.5% for the 15th month in a row following its November board meeting. The RBA continues to see improving global conditions and has indicated that its forecasts for Australian growth to pick  up are “largely unchanged” […]

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