Recent developments in the political and economic landscape have raised significant attention. Below are some key highlights:
Former Trump aide testifies to committing crimes alongside Manafort: The Hill
US imposes new economic sanctions on Iran: The Guardian
EU pledges to counteract US sanctions against Iran: Politico
As the Brexit deadline approaches, the UK considers the implications of US policies: Bloomberg
Beijing declares that China will not yield to US ‘trade blackmail’: CNBC
India and the US are involved in a rising trade dispute: CNBC
California’s wildfire—now the largest in state history—continues to expand: Reuters
Corporate boards approve an 80% rise in stock buybacks compared to last year: NY Times
Analysts downgraded S&P 500 Q3:2018 earnings estimates by 0.6%: Factset
Securitized real estate stocks led the performance rankings last week among the major asset classes, as assessed through a selection of exchange-traded products. US real estate investment trusts (REITs) achieved the highest weekly return through August 3, while foreign REITs experienced the most significant loss.
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Trump confirms his son met with a Russian for potential damaging information on Clinton: BBC
Tax reductions fuel a surge in profits for major US corporations: WSJ
JPMorgan Chase’s Dimon warns to “be prepared” for a 5% yield on the 10-year Treasury: Bloomberg
The Turkish lira falls to an unprecedented low after the US says it’s reviewing trade relations with Turkey: Reuters
PMI indicates global economic growth dipped to a four-month low in July: IHS Markit
The US trade deficit widened in June for the first time in four months: Bloomberg
US Services PMI reflects robust growth for July: IHS Markit
ISM Non-Manufacturing Index dropped to an 11-month low in July: MarketWatch
Nonfarm payrolls increased by a less-than-expected 157,000 in July: CNBC
The US economy has added jobs for the 94th month, yet wage growth remains subdued: WaPo
The bankruptcy rate among older Americans has increased sharply since 1991: NY Times
By Adam Tooze
Review via The Economist
Four major themes emerge from Adam Tooze’s analysis of the post-2008 period. The first is the immediate response to the crisis, where banks were saved, and both monetary and fiscal policies were loosened. The second concerns the eurozone crisis, which primarily affected Greece and Ireland, but also impacted Portugal, Italy, and Spain. The third theme highlights the shift towards more stringent fiscal policies in the developed world post-2010. Finally, the fourth theme focuses on the rise of populist politics in Europe and the United States.
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In July, US companies added a moderate 170,000 jobs (seasonally adjusted), as reported in the latest update from the US Labor Department. This figure falls short of June’s revised upward increase of 234,000, but the recent growth reflects a steady expansion in the labor market when viewed in the context of previous months.
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Does ESG Matter for Asset Allocation?
Joachim Klement (Fidante Partners)
July 12, 2018
The integration of ESG [environmental, social, and governance] factors into investment processes is increasingly becoming mainstream for institutional investors. However, challenges remain on how to effectively incorporate ESG criteria into top-down asset allocation decisions.
This report illustrates a systematic approach to integrating ESG factors into the asset allocation process without significantly compromising return expectations or increasing portfolio risk.
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U.S. Secretary of State asserts North Korea’s efforts to denuclearize are insufficient: Reuters
Analysts express optimism regarding today’s job report for July: MarketWatch
Eurozone Composite PMI reflects slowed economic growth at the beginning of Q3: IHS Markit
Apple’s market capitalization surpasses $1 trillion: USA Today
The prevalence of large corporations shapes the US economy: NY Times
The Bank of England raises interest rates to 0.75%, the highest since 2009: BBC
US jobless claims rise slightly but remain near historical lows: Reuters
Job cuts in the US decreased to the lowest level of the year in July: CG&S
US factory orders rose for the second consecutive month in June: CNBC
Regions of the world economy most vulnerable to climate change identified: Axios
The anticipated risk premium for the Global Market Index (GMI) saw a slight increase in July, reaching an annualized 4.9%—surpassing the estimation from the previous month. This forecasted return above the “risk-free” rate serves as a long-term estimate for GMI, which represents an unmanaged, market-value-weighted portfolio that includes all major asset classes.
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Iran plans to carry out provocative military exercises in the Persian Gulf: CNN
Turkey’s markets experience a steep decline following US sanctions: Bloomberg
Fidelity set to debut a line of zero-fee index funds: MarketWatch
The Federal Reserve maintains the current interest rate on Wednesday: NY Times
Trade tensions and labor shortages impact the US ISM Manufacturing Index in July: Reuters
US Manufacturing PMI drops to a five-month low in July: IHS Markit
Construction spending in the US decreased by 1.1% in June: MarketWatch
ADP reports a 1.86% increase in US private-sector jobs in July compared to last year, a new two-year high: CNBC
In July, the US stock market emerged as the top performer among major asset classes, achieving its fourth consecutive monthly increase and the best performance since January.
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