Global markets

When Britain voted to leave the EU back on 23 June, it sent the British Pound (GBP) into a tailspin. It’s depreciated 18 per cent against the USD and AUD since the day before the vote. Brexit, and the weakened GBP, will have a material impact on the earnings and valuations of a number of ASX-listed companies doing business in the UK. But not all.

by Stuart Jackson Posted in Companies, Editor's Pick, Global markets.

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Brexit, IDP Education

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According to the IMF, “Among the globally systemically important banks, Deutsche Bank (DB) appears to be the most important net contributor to systemic risk”. So the news engulfing Deutsche Bank is a big concern for global markets – or at least it should be. continue…

by David Buckland Posted in Financial Services, Global markets.

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deutsche bank, IMF

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Arguably the greatest risk to investors today is an under appreciation of how significant a change in bond interest rates will be. And these rates can change even if central banks don’t raise their own short-term offerings. So discussions about what the US Federal Reserve bank does with the fed funds rate, or the Reserve Bank of Australia through its own open market operations, aren’t particularly helpful. continue…

by Roger Montgomery Posted in Global markets.

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bonds, GFC

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These days, it’s not easy for investors to feel relaxed and comfortable. Pouring more fuel on investor anxieties is a report by the Bank of International Settlement that shows global debt spiralling out of control. continue…

by David Buckland Posted in Global markets.

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debt, interest rates

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In this interview with Warren Moore, Roger discusses China’s G20, steel production and currency devaluations. 

by Roger Montgomery Posted in Global markets, Radio.

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With interest rates now at an all-time low, government bond markets have been perverted from a risk-free rate of return to a return-free rate of risk. This has never happened before. So how will it play out? The worrying answer is: nobody knows. continue…

by David Buckland Posted in Global markets.

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Global bond yields are the lowest they’ve been in 500 years. And, around the world, there are $10 trillion of negative rate bonds. This situation has prompted legendary US investor, Bill Gross, to comment: “this is a supernova that will explode one day”. So, how concerned should we be? continue…

by Roger Montgomery Posted in Global markets.

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When it comes to interest rates, these are strange days indeed. For starters, think about this: if you were to lend 100,000 Swiss Franc to the Swiss Government for 50 years, you’d yield a return of 98,500 Swiss Franc in 2066, given the interest rate of minus 0.03 per cent. continue…

by David Buckland Posted in Global markets.

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Around the world five-year government bonds are paying paltry returns to their investors. Indeed, in some countries, rates are negative. continue…

by Roger Montgomery Posted in Global markets.

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The extensive but brief dislocations in global sharemarkets following the UK’s decision to leave the European Union were a timely reminder of the fleeting nature of many crises.

Read the full article here.

by Roger Montgomery Posted in Global markets.

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