Global Markets
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The Growing Risk of Greenflation: A Focus on Critical Minerals
The surging demand for critical minerals crucial to the development of renewable energy technologies is significantly heightening the risk of greenflation, according to the International Energy Agency’s “Energy Technology Perspectives 2023” report. This risk arises from an expected disparity between the demand for and supply of key minerals such as nickel and lithium, anticipated to…
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Red Sea Crisis: Global Trade, Shipping, and Commodity Markets
The Red Sea Crisis ignites a seismic shift in global trade as Houthi attacks on shipping routes have led to a drastic 82% reduction in container tonnage through the Suez Canal. Starting in November 2023, these disruptions have compelled a significant rerouting of maritime traffic around Africa’s Cape of Good Hope, impacting the global supply…
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The Rise of Tesla: How the Electric Car Company is Changing the Automotive Industry
ExxonMobil shakes up the energy game with its impressive $59.5 billion acquisition of Pioneer Natural Resources. Against a climate-conscious setting, the deal aims to redefine Exxon’s position in the Permian Basin, holding 40% of US oil production. Fueled by geopolitical events and soaring profits, the move is a strategic bet on operational efficiency, cost savings,…
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Central Bank Pivot – Yield Curves Flat – Markets Weekly
Central banks globally shifted their stance to tackle inflation, with the Federal Reserve accelerating tapering and planning three interest rate hikes in 2022. Despite these hawkish moves, yield curves remained flat. This reflects market uncertainty about inflation persistence, future rate cuts…
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Redefining Corruption’s Measurement: A Way for More Efficient Markets and Safer Investments
With the increasing importance of ethics and social sustainability in our societies, financial services must adapt in order to remain appealing. Despite its critical importance, financial experts frequently overlook corruption.
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2022 Markets, PE, and M&A Outlook
2021 was a year of record equity markets performance on top of a trailing economy, but 2022 might be a completely different landscape for global markets. The private equity industry had a record dry powder in 2021, especially for strategic spin-offs. This trend is likely to be continued in 2022. In the M&A industry, ESG…
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Corporate Cash Hoarding During Times of Uncertainty – The Case of Covid-19
During the Covid-19 crisis, firms aggressively hoarded cash, fearing liquidity shortages. BBB-rated firms, at risk of downgrades, drew down credit lines even more than non-investment grades. As markets stabilized, higher-rated firms accessed equity and bond markets, raising questions about credit ratings and financial system resilience.
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Beyond Brexit: Outlook and Risks for the U.K. Economy
The path of UK economic output in 2020 mirrored that of the eurozone. In the first half of the year, a deep contraction preceded a sizeable rebound in the third quarter as virus restrictions were partially eased. In the summer, the government’s ”Eat Out to Help Out” initiative to support the hospitality industry, paired with…
