La Financière de l'Echiquier
Alexandre Sauterel
11 Avenue du General Dufour / 1204 Geneve
Phone: +41 79 576 55 98
E-Mail: asauterel@lfde.com
Web: https://www.lfde.com/en-ch/
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22.10.2021 18:17 - La Financière de l'Echiquier: Fuel prices rocket! Since the beginning of the year, the European gas market benchmark price has risen over 300%. The price of CO2 emissions is soaring: an almost 130% increase in one year. Electricity, indexed to gas, is following the current. And oil prices are ablaze, with Brent at close on 80 dollars, compared with 45 dollars at the start of the year. The repercussions are already being felt: an...
19.10.2021 15:48 - La Financière de l'Echiquier: Temporary worries often linger longer than expected. And this is the case with inflation. Although the Fed and ECB continue to refer to it as “transitory”, it is increasingly playing on the minds of investors, producers and consumers. Even some Fed members are starting to get agitated about it. Minutes from their last meeting are evidence of this, with an increasing number believing that the benefits of current...
14.10.2021 13:15 - La Financière de l'Echiquier: The word “stagflation” is starting to appear lately certain analysts’ commentaries and headlines in the specialist press. Synonymous with dark days for the economy, it’s a concept offered as an explanation for recent weakness in equity markets after seven months of consecutive rises. Whilst we understand the media’s appetite for this term, the reality of the situation is quite different. Global growth: slowdown...
05.10.2021 15:33 - La Financière de l'Echiquier: September saw the retreat of global equities after seven months of consecutive rises. Should this be a cause for concern? Investors’ risk appetite seems to have dwindled within the space of a few weeks for a number of reasons. On the monetary policy front, the Fed is considering the gradual extinction of its accommodative measures, having gingerly prepared the markets for this eventuality. It is likely to...
28.09.2021 16:58 - La Financière de l'Echiquier: Markets are like life: sometimes you need a clean-up. This is when domestic disputes arise. Some of these result in separation; others are better managed. The case of the French submarines contract with Australia is a perfect example of a badly managed dispute. The players have been at loggerheads for some time. Pacts have been broken and there has been no clean-up. For an example of the opposite scenario – a...
23.09.2021 14:42 - La Financière de l'Echiquier: In the peak of summer, the news fell like a hammer blow. The conclusions of the IPCC’s sixth assessment report[1], making considerably less enjoyable reading than the latest summer novel, are incontrovertible: global warming is happening even faster and is even stronger than we feared, threatening humanity with unprecedented disasters. Not exactly something to rejoice about, when simultaneously, in numerous...
21.09.2021 22:03 - La Financière de l'Echiquier: Both business (PMI, ISM) and consumer confidence surveys (University of Michigan, Conference Board) predicted this, employment figures released early in September confirmed it, and inflation data released last week reinforced it: while Europe came through this crisis period relatively unscathed, the resurgence of the pandemic linked to the Delta variant caused a marked slowdown in economic activity in the US. ...
14.09.2021 23:02 - La Financière de l'Echiquier: Monetary policy is very often a policy of words, and equally as effective. The President of the European Central Bank (ECB)'s latest speech demonstrates this perfectly. Speaking at the press conference following the Monetary Policy Committee on 9 September, Lagarde used the following words to illustrate the ECB's plans to slow the pace of asset purchases: “The lady isn’t tapering, she’s recalibrating”. The...
07.09.2021 15:16 - La Financière de l'Echiquier: As children are on their way back to school again, laden down with their new equipment, central bankers have a busy schedule ahead as they return to the hush of their offices. USA: Stony Road to Monetary Policy Normalization In the US, the Jackson Hole seminar at the end of August sketched out the roadmap towards the gradual elimination of asset repurchases, otherwise known as tapering. But the specific...
24.08.2021 21:11 - La Financière de l'Echiquier: The first thematic fund in Europe focused on space and its ecosystem As the space 2.0 economy and the New Space offer unprecedented opportunities with the shift of the market to the private sector, La Financière de l'Echiquier (LFDE) announces today the launch of Echiquier Space in Switzerland, a premiere in Europe. The management team selects companies with activities in Space; operating between Earth and...
12.08.2021 11:12 - La Financière de l'Echiquier: There were two key events for markets at the end of July: the dramatic fall of certain Chinese shares, and the meeting of the US Federal Open Market Committee. In principle, there is no connection between these two events. In reality, they have one thing in common: a political preoccupation with improved social and national cohesion at the expense of strict economic orthodoxy. In China, the fall in...
29.07.2021 13:03 - La Financière de l'Echiquier: Is there a place for L’Oréal in an impact fund? Many would be tempted to reply with a decisive “no”. Yet the impact of the French group is powerful and systemic. The global cosmetics leader uses its size to influence its suppliers and put pressure on its competitors. This indirect impact is as strong as, if not stronger than, the direct impacts generated by specifically designed products and services. For a...
27.07.2021 12:24 - La Financière de l'Echiquier: After a series of meetings for which expectations were low, the ECB meeting of 22 July seemed more promising. With another shake-up to its initial timetable, the Frankfurt institution raised expectations by unveiling the conclusions of its strategy review a few days earlier. This exercise consisted of a thorough analysis of the framework for its mandate and toolkit. Christine Lagarde’s press conference took a...
06.07.2021 21:26 - La Financière de l'Echiquier: Like the temperature, the price per ton of CO2 emitted (or equivalent) continues to skyrocket: on 30 June 2021 it was EUR 56, a rise of 130% year-on-year, and over 1,000% over 5 years! As with cyclical stocks, the starting point for this surge was Biontech/Pfizer’s announcement of an effective COVID-19 vaccine at the beginning of November 2020. In principle, there is no connection between the two. Except for the...
17.06.2021 23:26 - La Financière de l'Echiquier: The US consumer prices index jumped strongly 5% year-on-year in May. How did markets react to this news? They calmed down in a matter of moments. Even more surprising was the movement in bond yields, which closed the day lower, rather than rising as might have been feared. Rise in inflation unsurprising One explanation for this is that the data was expected to show a sharp rise: the actual figure may have...
25.05.2021 22:36 - La Financière de l'Echiquier: At a time when economic activity surveys are at record levels, unemployment is trending down, inflation is close to its optimal rate (averaging around 2% in the long term), corporate profits, which were already high, are surpassing all expectations, the central bank is maintaining an ultra-accommodating stance and huge new investment plans are on the way, what more can we possibly ask for? Of course, we should...
20.05.2021 10:49 - La Financière de l'Echiquier: Markets are finding it difficult to know what to do. The April US employment report was much weaker than expected – despite numerous other factors, including measurement biases, that put a more positive spin on it – and seemed to provide a clearer outlook for monetary policy. However, last week's inflation figures shattered expectations. The consumer price index rose 4.2% year-on-year; this was its biggest jump...
11.05.2021 22:45 - La Financière de l'Echiquier: As each month passes and the economy starts to recover across the Atlantic, price pressures are gradually emerging at a low level. But for how much longer? Automotive industry with production bottlenecks A very good example of the mechanisms at work is the car market. The US economic recovery is being powered by a rebound in consumer spending, which in turn is pushing up car market prices – particularly for...
04.05.2021 23:04 - La Financière de l'Echiquier: Joe Biden’s America is pushing the boundaries far further than anyone could have expected, whether in terms of stimulus packages already passed and proposed, corporate earnings, the recovery in employment or the extent of support from the Fed. Let’s consider only a few examples. Amazon, one of the major beneficiaries of the lockdowns in 2020, tripled its net earnings in the first quarter of 2021, outperforming...
20.04.2021 14:38 - La Financière de l'Echiquier: China confirmed its status as the engine for global growth, publishing an initial estimate for Q1 2021 GDP growth of 18.3%. Of course, this figure was automatically boosted by the favourable base effect of comparison with the first quarter of 2020, when the Chinese economy came to an abrupt halt to focus on fighting the COVID-19 pandemic that originated in the country. But it only had to wait until the last...