Articles and Press releases
Global weekly: In or out? 10 July 2015
The crisis in Greece and a severe correction in China weighed on equity markets this week. Credit spreads for peripheral eurozone government bonds increased, but later declined, as Greece's problems remain contained.
The result of the Greek referendum on Sunday is crucial. A Yes vote would revive talks between Greece and its creditors, while a No vote would further increase the chances of an eventual exit by Greece from the euro.
Market alert: Greek drama, but no exit 29 June 2015
The developments related to Greece’s debt refinancing that occurred over the weekend are dramatic. They include the announcement of a referendum, a bank holiday for Greek banks and the ECB’s resolve to continue to provide support. Despite the high intensity, these events fall within the base-case scenario adopted by the Global Investment Committee. Plan B, an exit by Greece from the eurozone, still appears avoidable.
Global weekly: Greek drama: the final act? 26 June 2015
Not surprisingly, sentiment in equity and bond markets this week was driven by developments surrounding Greece. In what seems to be a never-ending story, Greece and its creditors failed to reach an agreement on debt resolution in the past couple of days. Eurozone finance ministers are scheduled to reconvene on Saturday for a meeting that has “decisive significance,” as German Chancellor Angela Merkel put it on Friday morning.
ABN AMRO is today issuing an update on the current investigation into previously ascertained irregularities at its Private Banking office in Dubai.
With an end-of-the-month deadline looming for Greece’s refinancing, markets were uncertain this week. In the US, the Federal Reserve looks to be on track for rate hikes beginning in September.
Investment strategy June 2015 15 June 2015
The Global Investment Committee (GIC), at its meeting on 10 June, confirmed the existing asset allocation consisting of an overweight in equities and a strong underweight in bonds. In recognition of increasing market volatility, the decision was made to further increase the diversification of the asset allocation, where applicable. Real estate, which historically moves in line with equities, was sold. The proceeds, together with a portion of cash, were invested in commodities and hedge funds.
Global weekly: Greece in firing line 12 June 2015
Sentiment is currently hurt by fears of a Greek exit, rising bond yields and increasing volatility in foreign exchange markets. These developments should, however, not challenge the economic recovery scenario or earnings fundamentals.
Bond volatility: here to stay? 05 June 2015
Bond markets dropped this week, fuelled by ECB President Mario Draghi’s remark that bond investors should get used to periods of higher volatility. Bond yields, moving inversely to bond prices, surged. Equity markets fell, most notably in Europe, as the showdown between Greece and its creditors appeared to be far from over.
Global weekly: Mindful moves 29 May 2015
After remarkable performance in the first half of the year, investment prospects remain positive. We expect equities to continue to outperform cash and bonds, with a preference for Europe and emerging markets Asia. The ABN AMRO Private Banking Mid-Year Investment Outlook, Mindful Moves, that was released this week, provides more details on what we expect for the next six months and beyond.