report by BlackRock
Results for ""
Market Outlooks
Global Weekly Commentary: Climate transition: a driver of returns
This piece is approved to use with clients.
We are incorporating the effects of climate change – and of the climate transition – in our return assumptions, as we believe avoiding climate-related damages will help drive growth and improve returns for risk assets. We see climate-resilient sectors as potential beneficiaries of a “green” transition, and are strategically overweight DM equities as they are skewed toward these sectors.
Market Outlooks
Global Weekly Commentary: Downgrading government bonds
This piece is approved to use with clients.
We broaden our tactical pro-risk stance in light of major developments since the publication of our 2021 outlook in December: the vaccine rollout and up to $2.8 trillion of additional U.S. fiscal spending this year. Inflation expectations have risen sharply while real rates are steady in negative territory. We prefer equity over credit and turn underweight government bonds – in line with our strategic views.
Policy and Regulatory Commentary
A Stronger CFPB Is Soon Likely
The U.S. Senate Banking Committee will hold a hearing next week to consider the nomination of Rohit Chopra, President Joe Biden’s choice to lead the Consumer Financial Protection Bureau (CFPB)
Market Outlooks
Global Weekly Commentary: Fiscal boost is not a market risk – yet
This piece is approved to use with clients.
The prospect of another large U.S. fiscal package has fed debates about potential economic overheating. We believe central banks for now have strong incentives to lean against any rapid rise in nominal yields even as inflation rises, supporting our tactically pro-risk stance. Yet rising debt levels may eventually pose risks to the low-rate regime. This is part of why we strategically underweight government debt.
Macroeconomic & Geopolitical
Will Minimum Wage Sink COVID Relief?
Next week could bring the first major test of the durability of Democrats’ advantage in Washington. A House of Representatives vote on President Joe Biden’s $1.9 trillion coronavirus spending package will indicate whether the party’s one-seat advantage in the Senate and its four-seat majority in the House is enough to get major legislation passed.
Macroeconomic & Geopolitical
An Explanation of Reconciliation
Right now, Democrats on various U.S. House and Senate committees are busy putting together their respective pieces of another COVID-19 spending relief package. The price tag for the legislation will be around $1.9 trillion – the amount President Joe Biden outlined when he took office last month.