Lower for Longer

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Major central banks have recently held their respective monetary policy meetings and we believe the outcomes remain very supportive, both for the real economy and financial markets. In the US, the FOMC meeting, held last week, leaves no room for doubt: liftoff in rates will not happen until employment reaches full capacity and inflation runs for some time above their 2% target. This second element is a new addition to forward guidance and makes it likely that monetary action will remain very accommodative until at least 2023.

 

Will the US Re-Impose Tariffs? China is far behind on its commitments to purchase US goods as part of the phase 1 trade deal. According to the non-partisan Peterson Institute for International Economics, China has imported USD 50bn of US goods as of July 2020, less than half of the pro-rated target of USD 100.7 bn. Whether due to willingness or ability, this provides the US with an opening to exert further pressure on the Chinese and threaten, if not re-impose, tariffs that had been reduced or suspended as part of the trade deal. Source: Bloomberg, Peterson Institute for International Economics, Unigestion. Data as at 31 August 2020. <div class="col-12 d-none d-sm-block" style="height: "10"px"></div>
 <hr/> Important Information The information and data presented in this page may discuss general market activity or industry trends but is not intended to be relied upon as a forecast, research or investment advice. It is not a financial promotion and represents no offer, solicitation or recommendation of any kind, to invest in the strategies or in the investment vehicles it refers to. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment. The investment views, economic and market opinions or analysis expressed in this page present Unigestion’s judgement as at the date of publication without regard to the date on which you may access the information. There is no guarantee that these views and opinions expressed will be correct nor do they purport to be a complete description of the securities, markets and developments referred to in it. All information provided here is subject to change without notice. To the extent that this page contains statements about the future, such statements are forward-looking and subject to a number of risks and uncertainties, including, but not limited to, the impact of competitive products, market acceptance risks and other risks. Data and graphical information herein are for information only and may have been derived from third party sources. Although we believe that the information obtained from public and third party sources to be reliable, we have not independently verified it and we therefore cannot guarantee its accuracy or completeness. As a result, no representation or warranty, expressed or implied, is or will be made by Unigestion in this respect and no responsibility or liability is or will be accepted. Unless otherwise stated, source is Unigestion. Past performance is not a guide to future performance. All investments contain risks, including total loss for the investor.
Source: Bloomberg, Unigestion. Data as at 18 September 2020.


Important Information

The information and data presented in this page may discuss general market activity or industry trends but is not intended to be relied upon as a forecast, research or investment advice. It is not a financial promotion and represents no offer, solicitation or recommendation of any kind, to invest in the strategies or in the investment vehicles it refers to. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment.

The investment views, economic and market opinions or analysis expressed in this page present Unigestion’s judgement as at the date of publication without regard to the date on which you may access the information. There is no guarantee that these views and opinions expressed will be correct nor do they purport to be a complete description of the securities, markets and developments referred to in it. All information provided here is subject to change without notice. To the extent that this page contains statements about the future, such statements are forward-looking and subject to a number of risks and uncertainties, including, but not limited to, the impact of competitive products, market acceptance risks and other risks.

Data and graphical information herein are for information only and may have been derived from third party sources. Although we believe that the information obtained from public and third party sources to be reliable, we have not independently verified it and we therefore cannot guarantee its accuracy or completeness. As a result, no representation or warranty, expressed or implied, is or will be made by Unigestion in this respect and no responsibility or liability is or will be accepted. Unless otherwise stated, source is Unigestion.

Past performance is not a guide to future performance. All investments contain risks, including total loss for the investor.