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Author: Murat Basboga (Murat Basboga)

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Game-changer, really?

While the fanfare of the G7 leaders’ summit has taken place in picturesque Cornwall, UK last week, the a bigger event happened a few days before.: the minimum global corporate tax for multinationals, I mean. The OECD has been working on this proposal for the last two years. The minimum global tax is simply one...

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Talk of the town

The famous section title from the New Yorker Magazine suits my purposes for a brief review of current markets. The headlines are full of accusations by Dominic Cummings, ex-senior advisor to Prime Minister Boris Johnson, against the UK government’s handling of the pandemic: Incompetence, opaque explanations of the measures taken to tackle the crisis, etc....

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Brexit revisited and elections

Brexit is an unwelcome topic for many people. Thankfully there are no more trade talks or end of year deadlines for investors to worry about. That said, Brexit still casts various shadows. The latest has prompted the UK to send a gunboat or two to protect the island of Jersey from French fishermen. By the...

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The first 100 days

Last Thursday marked the 100th day of Joe Biden’s presidency in the U.S., and over that time the S&P 500 Index has gained 10.9%. Purely judged in stock market terms, this marks the most successful start to a presidency since Franklin Roosevelt in 1933, who swiftly passed a number of measures to get the country...

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A rare earth

Avid readers of the financial press may already be familiar with the rare earth (commodities) and their oxides, used by manufacturers of turbines and cars. To cut to the chase, the rare and most precious commodity is stability. Maybe it may be a far-reaching analogy, but it works fine. If you would like to have...

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Timing for inflation

Government bond markets, and particularly the treasury market have been concerned this year about the possibility of sharp increases in inflation. Are these concerns valid? The answer is ‘yes-and-no’. The markets should be wise to the prospects of higher inflation over the longer-term, but calm about rising prices in coming months. Concerns about inflation have...

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Strong footing

The upbeat momentum with the vaccination program in developed countries has helped accelerate the boost in the markets. A marked increase in U.S. Treasury bond yields pressured higher growth areas of the equity markets and accompanying U.S. dollar strength was also a headwind for emerging markets. Emerging markets investors are exhibiting a lack of market...

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Risk on

After a horrible year with devastating human losses globally, investment bankers beamed themselves to a different universe, dealt with skyrocketing IPOs, SPACs, equities, etc. Risk on mode triggered heavily, with the help of vaccination efforts in developed countries, huge plans in infrastructure investment, supports for the common people to survive, at least for now. The...

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Roller-coaster

Just a fortnight ago, all market watchers waited for decisions from major central banks, as well as Turkey. First the CBRT raised rates to 19%, above expectations. Managed by Naci Agbal, the action created a positive boost in the following days. Then, in just 48 hours, Mr Agbal was removed from his post with a...

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Believing fairy tales

The U.S. Federal Reserve is still asking the market to believe in the Goldilocks scenario: an economy that’s sufficiently hot that we’ll see rampant growth this year, but not so hot that any “bulge” in inflation, to use Chairman Jerome Powell’s words, becomes problematic. And, as if that’s not enough for the equity bulls, there’s...

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