Jan 18, 2017
LGT Navigator: May puts her Brexit cards on the table
UK Prime Minister Theresa May presented her strategy including a twelve point plan for the Brexit. Basically, the British government aims for a clear
cut, i.e. a pledge to exit the European domestic market and the customs union, as well as turning away from the European High Court. Instead the
United Kingdom wants to negotiate a new free trade agreement with Brussels. As the Prime Minister’s core arguments had been published in the
media beforehand, the market reaction remained relatively muted, as many market participants had anticipated an even tougher Brexit plan. On this
background, the British pound recovered some of its recent losses.
Jan 17, 2017
LGT Navigator: Though talk from Trump and May
The verbal sweeping blow of U.S. President-elect Donald Trump and insecurities about the United States’ future trade politics unsettled investors at
the beginning of the week. In effect, Trump’s statements had a negative effect on European bourses, while markets on Wall Street remained closed
due to a holiday. Trump’s threat against foreign corporates (such as German car maker BMW) to introduce punitive tariffs (of up to 35%) on U.S.
market-bound products produced abroad, increased the fear of a trade war between the U.S. and Europe, or as well China.
Jan 16, 2017
LGT Navigator: Solid U.S. data but disillusionment with Trump
Besides relatively satisfactory U.S. economic data, quarterly earnings by the two major U.S. banks JPMorgan Chase and Bank of America ensured a slightly improved investor sentiment at the end of last week. On the other hand, President-elect Trump is making headlines with an attack against German car makers, the European Union and NATO.
Jan 11, 2017
LGT Beacon: Navigating fragile markets
In 2017 there will be no shortage of political events with a potential to at least disrupt the global equity bull market, like the upcoming Brexit process or the German and French elections. Still, we advise investors to remain constructive and focus on setting portfolios on a robust footing by adopting a long-term asset allocation that includes alternative investments.