Pushing On A String - Revisiting The Japanese Rate Experience
In this month’s article, we discuss Japanification in the midst and aftermath of the COVID-19 era. We begin by providing a refresher on Japan’s economic experience since the early 1990s. We then turn to the unconventional monetary policy settings that have become conventional across the developed world, and how, when paired with structural issues, the likelihood of a Japanification scenario increases.
Wildfires - Burning More Than Just Landscapes
Climate change and the risks that go with it have been front of mind for investors and regulators alike for several years. In this month’s article, we provide a specific, but very relevant example of how climate change is impacting investors’ portfolios today. Wildfire activity in the state of California has increased dramatically over the past several decades, with 2020 marking the worst year on record.
THE TUMULTUOUS AND TROUBLESOME TAIWANESE TUG-OF-WAR
In this month’s article, we unpack the risk of conflict between China and Taiwan. We begin by providing an overview of the complicated relationship between China, Taiwan and the US, and why conditions are growing increasingly favourable for conflict. We then touch on the significant economic and financial market disruption such a conflict could have, not only because of the importance of the region in global trade routes, but also because of the possibility for the weaponisation of trade.
HUMAN MISERY THE CHALLENGES AND POSSIBILITIES OF MODERN SLAVERY DISCLOSURE
This thought leadership article provides investors an update on modern slavery developments. We describe the impacts of the global pandemic, and recent legislative efforts in the US and other jurisdictions aimed at combatting modern slavery. We also consider two case studies where forced labour was found in infrastructure, an asset class at particular risk of modern slavery. Finally, we consider what these developments mean for upcoming investor disclosure.
THE GREENBACK SLIDE – NOT ENOUGH FOR A RESERVE RESHUFFLE
In this month’s article, we discuss the outlook for the USD in global financial markets, starting with the key drivers for the medium term and the associated investment implications. We discuss the role that the USD plays in global markets, and why its weak outlook has reignited claims it will lose its top currency spot. We finish by considering whether there are reasonable alternatives to the USD as the global reserve currency and if there is any imminent risk of a reserve currency rotation.