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There are significant challenges for the industry to overcome to increase supply of nickel and copper in the coming years. These challenges are likely to require innovative solutions to bridge supply gaps and keep the costs to established and emerging end uses down.
There are significant challenges for the industry to overcome to increase supply of nickel and copper in the coming years. These challenges are likely to require innovative solutions to bridge supply gaps and keep the costs to established and emerging end uses down.
Since the third quarter of 2021, breakeven inflation rates for the US, UK and Germany have risen considerably. Persistent inflationary pressures tied to supply chain issues have only been exacerbated by the turmoil around Russia and Ukraine. Oil prices are near 90 dollars a barrel and any sanctions placed on Russia could push prices higher, particularly for the European Union as Russia is their largest supplier of gas. Amid this backdrop, Central Banks are much more hawkish in 2022 than last year and bond market yields are correcting to higher yield levels. One sector that has historically benefited from rising bond yields is the banking sector. In this blog, we will discuss what rising bond yields could mean for the banking sector in 2022.
Megatrend investing has exhibited incredible growth and interest in recent years. While performance can ebb and flow, we believe that there is incredible potential here to change the way global society functions. Such opportunity also has the added benefit of satisfying the human drive to connect with stories. Even if we think of the words ‘megatrend’ and ‘thematic’ as being more recently coined, what we know of as ‘growth’ or ‘emerging tech’ have been around far longer and are very related.
After a low-quality rally that started in November last year, the Federal Reserve (Fed) may soon be starting to taper and has hinted at a more hawkish stand, and with increasing fear of a rebound of the coronavirus this winter, investors may start to be more selective with their investments. Such mid-cycle behaviours tend to favour high-quality stocks (high profitability, low debt). After a period where they took a backseat to their lower quality counterparts, such stocks could now benefit from their high pricing power and stronger balance sheets to help them face rising costs and compressing margins and help them potentially outperform.