Talking Heads

In mid-June, Fed Chair Jay Powell pulled the rug from beneath the reflation trade by suggesting current inflation pressures were perhaps not transitory after all. Fixed income markets promptly reversed course with 10-year US Treasury yields last week trading as low as 1.25% after ending the first quarter at 1.70%. In this week’s podcast, Olivier de Larouziere, chief investment officer fixed income, explains what remains of the 2021 reflation trade. Listen to the podcast with Olivier de Larouziere, chief investment officer fixed income Hosted by Ausha. See ausha.co/privacy-policy for more information.

While many parts of the economy had to shut down as the coronavirus pandemic raged, the lights stayed on, water flowed from taps and internet connections buzzed. The crisis has highlighted the importance of the underlying infrastructure and, as Karen Azoulay explains, it was a useful reminder of the solidity of infrastructure debt as an asset class. Listen to the podcast with Karen Azoulay, head of infrastructure debt.Hosted by Ausha. See ausha.co/privacy-policy for more information.

Addressing ecosystem restoration is just as pressing as tackling CO2 emissions and can generate billions of dollars of investment opportunities, as Ulrik Fugmann and Edward Lees, co-heads of the Environmental Strategies Group, explain.Hosted by Ausha. See ausha.co/privacy-policy for more information.

Emerging market equities offer investors a wide range of diversification opportunities across economies with a solid post-pandemic growth profile that include, but also stretch beyond, China and the wider Asian region. Quang Nguyen, head of global emerging market equities, argues the case for a broad perspective and active portfolio management. Hosted by Ausha. See ausha.co/privacy-policy for more information.

Thanks to central bank largesse, corporate bond markets weathered the depth of the Covid crisis well. Risks to credit markets today appear low with gradually improving fundamentals, neutral central bank policy and no major supply-demand imbalances.   Hosted by Ausha. See ausha.co/privacy-policy for more information.

On account of the region’s strong economic growth, Asia has a considerable impact on climate change, but at the same time is, perhaps disproportionately, exposed to its effects. That makes engaging with companies and working with the authorities all the more important for investors such as BNP Paribas Asset Management. Paul Milon, Head of stewardship Asia Pacific, explains. Hosted by Ausha. See ausha.co/privacy-policy for more information.

Fund flows to date have massively favoured US equities, but European equities now have considerable scope to catch up as the economic recovery broadens and investors reassess their valuations relative to their more expensive US counterparts. Peter Abbott, European equities portfolio manager, shares his views. Hosted by Ausha. See ausha.co/privacy-policy for more information.

Climate change and pollution are among the factors reducing biodiversity. The result is considerable damage to society and the economy. Robert-Alexandre Poujade, ESG analyst at our Sustainability Centre, warns not to underestimate the consequences of biodiversity loss and underscores the role investors can play in the battle to contain and reverse current trends. Hosted by Ausha. See ausha.co/privacy-policy for more information.

The economic recovery should broaden into a synchronised global upturn in the course of the second half of this year, favouring risky assets including commodities, equities generally and notably emerging market equities. An equity correction should be seen as a buying opportunity, argues Christophe Moulin, Head of Multi Asset.  Hosted by Ausha. See ausha.co/privacy-policy for more information.

Inflation has been quiescent in developed economies in recent years. Today, the possibility that we may be on the brink of a secular shift away from the low-flation regime is a topic of intense debate among investors. Nowhere is this more so than in the US where the abundance of fiscal and monetary support is seen by some as irresponsible in creating risks of an inflationary shock. Cedric Scholtes, Head of Global Sovereign, Inflation and Rates, discusses the outlook. Hosted by Ausha. See ausha.co/privacy-policy for more information.