News

After a straight-line upward movement for most asset classes in Q1, Q2 has been more mixed. Entering H2, the big picture remains broadly supportive. However, beneath the surface, financial markets appear vulnerable to multiple threats, from stalling activity momentum and toppish technicals to faltering Tech leadership and election uncertainty.

Volatile stock markets, falling US Treasury yields and a weakening US dollar signal growing unease in the capital markets. Specifically, the US Federal Reserve (Fed) has come under intense scrutiny. While the European Central Bank (ECB), the Swiss National Bank (SNB) and the Bank of England (BoE) have already lowered their interest rates this year, the Fed has maintained its key interest rate at a consistently high level

"Cleopatra's nose: had it been shorter, the whole face of the world would have been changed". This thought by Blaise Pascal reminds us all how small events can have major consequences.

After a straight-line upward movement for most asset classes in Q1, Q2 has been more mixed. Entering H2, the big picture remains broadly supportive. However, beneath the surface, financial markets appear vulnerable to multiple threats, from stalling activity momentum and toppish technicals to faltering Tech leadership and election uncertainty.

ODDO BHF appoints Christian Zahn as Head of Investment Banking and member of the Group Management Committee (GMC) with effect from September 1, 2024. As a partner of the Group, Zahn will be responsible for all of the Group's investment banking activities as well as the Institutional Fund Platform.

Europe faces significant structural challenges that impact its productivity compared to the US. Market fragmentation and regulation, a high proportion of small businesses, elevated taxes and lower R&D spending are some of the key contributors to this disparity.

In France, the recent elections for the European Parliament ended in a rout for the presidential party. It garnered half the votes of Marine Le Pen's Rassemblement National (RN), at 14.6% and 31.3% respectively. Although this outcome had been predicted by polling institutes, the defeat remains a hard pill to swallow for Emmanuel Macron.

If a frog is thrown in boiling water, it will leap out instantly. But if placed in cold water that is slowly heated, it will supposedly stay there. As the tale goes, the frog only perceives the slow change in temperature as a danger when it is beyond saving. In reality of course, frogs are not that foolish. Rather, the story serves as a parable for the following point: people often seem to ignore slowly building risks until it is too late.