View more on these topics

Schroders downgrades global forecasts over geopolitical fears

Schroders is set to downgrade its global growth forecasts for the first time in more than 18 months.

The manager is set to downgrade next quarter on a host of macroeconomic and geopolitical fears, chief economist Keith Wade announced at Schroders’ investment conference in Edinburgh today, despite raising it every quarter for the last year and a half.

These include a potential reduction in quantitative easing in the Eurozone, the impact of trade talks between the US and China, and indebtedness in the UK.

Wade says: “We would say the world economy is growing pretty robustly, but the best is probably behind us…The momentum is beginning to wane.”

While Wade noted the firm still expects global growth to come in above 3 per cent, for any “positive surprises” it will have to perform “even better than it was before”.

Wade noted that the US was experiencing its second longest expansion on record with nine years of growth, the previous high coming in at only 10 years.

Wade says: “All good things must come to an end”.

Wade also expressed fears over the knock on impact for supply chain countries like Japan as the USA and China continue to threaten tariffs on trade.

“When we as investors think about the impact of trade wars, we need to think beyond the US and China…this dispute could go on for a long time…we are not forecasting a trade war but a long standoff.”

Wade added that in the US employment rates remain above equilibrium but that wages will continue to rise, causing stagflationary pressure.

Other growth factors include retail sale stagnation in the UK.



Jupiter warns over continued volatility threat

Jupiter Asset Management is concerned markets could see further volatility in the latter part of 2018, while the strength of the dollar could also threaten global growth. Speaking at Jupiter Asset Management’s annual investment dinner last night, fund manager Ariel Bezalal said: “Our concern is that what we had in February with the shocking rise in […]

Volatility fears take multi-asset fund sales to £1bn

High market volatility in February resulted in more retail investors using multi-asset fund managers and pushing net sales up to £1bn, new figures show. Data from the Investment Association tracking net retail fund sales in February show investors avoided both bond and equity funds with £235m and £136m outflows, respectively. In early February the US […]

Richard Buxton: Three cheers for the return of volatility

A degree of fear and volatility is healthy, as investors have chance of picking up bargains. Market corrections are a healthy part of everyday investing. Make the most of the opportunities they provide. Spring is in the air. Wakened from their cosy lethargy of the long winter months, Mother Nature’s green shoots are starting to […]

Linda Woodall 700 x 450

Ex-FCA advice boss takes role with Aegon

Former FCA advice director Linda Woodall has joined Aegon’s independent governance committee. Woodall stepped down from her role at the FCA in December last year. She was previously director of mortgages and consumer lending at the regulator. Woodall replaces Institute of Customer Service chief executive Jo Causon who served on the committee as an independent […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment