The Investor 'Extra' - March 2015
With the European Central Bank’s announcement of further sovereign bond purchases back in January, yet another developed economy central bank has now embarked on a fully fledged Quantitative Easing program. This again prompts investor questions around what exactly the objectives behind QE are and how it benefits the economy?
Q4 2014 Irish GDP/GNP – Irish Economy grows by 5% in 2014, Domestic demand growth the icing on the cake!
Q4 2014 Irish GDP/GNP – Irish Economy grows by 5% in 2014, Domestic demand growth the icing on the cake! On Thursday the Central Statistics Office released National Accounts for Ireland for the fourth quarter of 2014. These showed that the economy grew again in the final three months of the year with real GDP and GNP growing by 0.2% and 2.3% respectively (see table 1 below for details).
Investors pocket nice gains in February!
Investors pocket nice gains in February! Historically February has been a tricky month for investors – on average over the past 50 years it’s been the second worst month of the year for US stocks. However February 2015 was different with world stocks gaining almost 7% in euro terms. The other big plus for stock investors last month was that the positive returns flowed in local currency terms rather than mainly as a result of euro weakness which was the case in January. So far this year world stocks are up around 5% in local currency terms but a whopping 12% in euro terms.
Investors dodge the ‘Grexit’ issue again
Investors dodge the ‘Grexit’ issue again Investors breathed a sigh of relief on Friday as European Finance Ministers granted Greece a four month extension to its aid package subject to submitting a list of agreed economic and other reforms by later today (Monday). Additionally the deal must be ratified by a number of national parliaments around the Euro zone.
Private Banking Global ‘Wrap Up’ – Q4 2014
The global economy continued to experience a mixed performance towards the end of 2014. On one hand, momentum in the US improved with the economy posted its best quarterly performance since 2003 with growth of 5%. However this was countered by sluggish conditions in the Euro zone (annualised growth of 0.8%) and another recession in Japan as the economy contracted again, this time mainly as a result of lower inventory investment in contrast to the collapse in consumer spending in the second quarter.