The rise of electric vehicles and car battery manufacturers in emerging markets, present an exciting opportunity for investors. Concerns on climate change and the fuel economy are key drivers of this shift towards an economy fuelled by electric vehicles. Countries such as the Netherlands and Norway are undertaking initiatives to help eliminate air pollution and widen the use of EVs by committing to banning diesel and petrol cars by 2025.
View of the Day
Saudi Arabia will almost certainly be approved this week for an upgrade from its standalone classification to the MSCI Emerging Market Index.
The country is set to become about 3 per cent of the MSCI Emerging Markets Index when it is eventually included in the benchmark in June – or split possibly between June and September – 2019.
From a distance, it is easy to conclude that Egypt is an arid environment for investors. Accounting for only 0.13 per cent of the MSCI Emerging Markets Index, the country is often overlooked given its questionable democracy, high rate of inflation, recent currency devaluation and twin deficits. Since the global financial crisis, Egypt has suffered a difficult decade characterised by political instability and economic turmoil.
If England has a good World Cup (reaching at least the quarter finals) we would expect the following stocks to benefit:
The hard discounters have created a difficult trading environment for Tesco in recent years but the rate of growth is slowing for the discounters and market growth now exceeds space growth for the first time in a decade.
As widely expected, the mighty US Federal Reserve Bank has raised US interest rates again. It has also signalled two further hikes this year and is progressing with unwinding the bloated balance sheet it built up during successive rounds of 'Quantitative Easing', a form of financial alchemy designed to keep borrowing costs low by buying vast amounts of bonds each month.
You need not have read or seen the news over the weekend, but you would have got the gist of how well the G7 summit went from one photograph. It was the photo of several G7 leaders standing round a table looking at Donald Trump who was sat down with his arms crossed. It was a scene that most people will be familiar with, that is if you have ever seen parents scolding a petulant child.
Each of the big four supermarkets have struggled in recent years to meet the ongoing competitive threats from Waitrose’s quality offer, the home delivery of Ocado, the discounters, and now the potential threat of the ‘beast’ called Amazon. There have been multiple responses to these threats, with each of them now having a strong local offering, while also delivering to your home.
Received investment wisdom would view technology stocks firmly as a growth-only proposition. However, for those seeking income, this could be a costly mistake. Despite volatility in the market and worries over new regulation, an increasing number of tech companies have begun to pay dividends to shareholders, and we view the sector as a significant future source of income generation.
Business surveys in the US indicate that business optimism and the pace of economic growth are most likely peaking. With the US unemployment rate at only 3.8 per cent, fast approaching the lowest level seen in the last 50 years, economic growth should naturally slow as the economy starts to run out of workers who are available and sufficiently trained to fill the increasing number of job vacancies. There are currently over 6.5 million unfilled job openings in the US, the highest level on record.
Many still perceive the boundaries between financial advice and guidance to be unbound, despite the FCA trying to give clear parameters to help distinguish the consumer interpretation of 'advice' and 'guidance'.
Within the debate over the murky water between advice and guidance sits the classification of robo-advice. The name itself suggests one thing, yet the reality can be very different.