Global equity markets hit new all-time highs over the past week, now standing at a gain of roughly 18% for 2017. This took place while politics performed fairly shambolically wherever one looked and (western) society was shaken up by the threat of terrorism and widespread revelations about high profile harassment cases. If capital markets had fallen instead, all this would be used to explain the falls. But, given the gains, one must ask – do politics really no longer matter?
Level headed budget – overshadowed by deteriorating outlook
UK headlines have been dominated by the Chancellor’s Autumn budget this week. The main focus of the new measures was on housing, where Philip Hammond used his first budget of this Parliament to announce several large measures to address the country’s “broken” housing market. The bottom line figure was a long term £44bn housing package comprised of investment, loans and guarantees to increase the annual number of new homes built to 300,000 in the middle of next year.
How extended are US equity valuations?
The minutes from the US Federal Reserve’s (Fed) October/November meeting suggest that policy makers are becoming more upbeat about the prospects for continued domestic growth and thereby the risk of inflationary pressures. As a result, the implied market probability of another 0.25% rate rise in December rose to 95%.
The fall of Comrade Bob: What Mugabe’s resignation means for China
“The Goblin has gone!” shouted one of those celebrating on the streets of Harare this week. The enthusiasm was far from uncommon. All over the streets of Zimbabwe’s capital there was dancing, singing and joy. Robert Mugabe, the leader whose grip on the African nation extended 37 years, has finally resigned.
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