Latest from BCA Research
AI is not the Early-Stage bet investors should be making. It is obvious and highly competitive. Venture Capital is not about direct competition but about pioneering new directions. While everyone is distracted with AI, investors should look to Aerospace & Space Technology. Strategic buyers will provide exit opportunities.
A risk/reward ranking of the 10 major US investment grade corporate bond sectors.
Does the recent surprise rate cut by the Swiss National Bank augur other dovish surprises among major central banks in Europe?
The US Presidential election is eight months away. In this report, we will be looking at what is left of President Biden’s political capital and his room for actions in the next few months which may include market-negative actions such as the recently announced investigation into Apple.
Despite a couple of rate cuts in H2 2024, borrowing costs will remain elevated in real terms amid lower inflation in the US and Europe. This and tightening fiscal policy will hinder domestic demand in advanced economies. Domestic demand in China and EM ex-China will remain very tepid, with risks skewed to the downside.
We expect oil-demand growth to increase this year – to 1.7mm b/d from 1.4mm b/d (0.30% of total demand) – and anticipate tighter supply at the margin. Our balances estimates are unchanged, leaving our Brent price forecasts for 2024 and ’25 at $95/bbl and $105/bbl. We expect the US to deploy warships if Venezuela makes a move on Guyanese territory in a bid to grab deep-water oil production.
The Bank of Japan delivered a historic policy adjustment this week, ending both negative interest rates and Yield Curve Control. In this Insight, BCA’s global fixed income and currency strategists discuss the immediate implications of the move for Japanese bond yields and the yen, and the potential for additional tightening actions.
Deflation remains prevalent in the Chinese economy. The longer authorities delay a big bang-type stimulus, the more entrenched deflation will become. Hence, a cyclical upswing in Chinese stocks is unlikely, although there might be short-term rebounds.