B2B Central

BlackRock Investment Institute

05 Feb 2020

Coronavirus worry clouds markets

By Janice Roberts

The coronavirus outbreak emanating from China has sent jitters across financial markets amid fears of a hit to the global economy. We still expect growth to edge higher in 2020 thanks to easier financial conditions and trade tensions going sideways,
28 Jan 2020

US dollar underpins EM assets

By Janice Roberts

We see the U.S. dollar stabilizing or weakening over the next six to 12 months. Two broad drivers – monetary policy differentials and risk appetite – decide the dollar’s moves, in our view. We see a pause in monetary policy in most developed markets (DM) and some room for additional easing in EMs; easing trade tensions should underpin risk appetite, reducing “safe haven” demand for the dollar.
17 Jan 2020

Geopolitical risks on our 2020 radar

By Janice Roberts

 By BlackRock Investment Institute. U.S.-Iran tensions have spiked in recent weeks with the U.S. killing of a top Iranian military leader triggering retaliation. This reminds us of still heightened geopolitical risks across many dimensions, even as we see a relatively benign backdrop for risk assets in 2020. The U.S.-China trade conflict – 2019’s dominant geopolitical...
09 Jan 2020

Why we like inflation-linked bonds

By Janice Roberts

By BlackRock Investment Institute. We see inflation risks as underappreciated in 2020 – and beyond. Our base case is for modestly higher U.S. inflation this year, with a risk of upside surprises. Drivers include rising wages and energy price volatility in the short term, and deglobalization over time. We like Treasury Inflation Protected Securities (TIPS)...
13 Dec 2019

UK PM can push ahead with Brexit

By Janice Roberts

By BlackRock Investment Institute. Prime Minister Boris Johnson can push ahead with Brexit but faces a difficult end-2020 deadline to negotiate a trade deal with the EU. We expect an extension. We see the pound and domestic-focused UK equities benefiting from greater political certainty, and bond yields rising on a brighter growth outlook. The UK...
13 Dec 2019

Global growth should edge higher in 2020

By Janice Roberts

By BlackRock Investment Institute. Powerful structural trends are testing limits — and threaten to intersect with the near-term outlook and become market drivers. Rising inequality and a surge in populism have implications for taxes and regulation. Trade frictions and deglobalization are weighing on growth and boosting inflation. Interest rates are nearing lower bounds and crimping...
05 Dec 2019

BlackRock takes stock of its 2019 views

By Janice Roberts

By BlackRock Investment Institute. In 2019 the key drivers of global markets have been trade tensions and central bank easing, in our view. We were early to see that a protectionist push would hurt the industrial cycle and business investment — a key reason for our global growth downgrade. And we were correct to say...
26 Nov 2019

A rethink on the role of government bonds

By Janice Roberts

By BlackRock Investment Institute (BII). Monetary policy may have reached its limit in stoking growth and interest rates in some developed markets are nearing the lowest levels that central banks can feasibly set. This forces a rethink of the strategic role of government bonds in portfolios. The duration of bond indexes has been rising as yields decline,...
20 Nov 2019

Getting sustainable in fixed income

By Janice Roberts

By BlackRock Investment Institute. The equity market has played an early role in sustainable investing, while bond markets have lagged in data, tools and insights. But that’s changing fast, as we detail in a new publication: Sustainability: the bond that endures. New ESG indexes have created building blocks that can be used to bring sustainability into...
05 Nov 2019

'Late-cycle easing may end soon'

By Janice Roberts

By BlackRock Investment Institute (BII). Global central banks have delivered an unusual late-cycle dovish pivot this year – to extend an already-long economic expansion. The Fed’s rate cut last week was the latest installment of this dovish push. Yet the Fed also signaled the potential completion of its late-cycle rate cuts, significantly raising the bar...
31 Oct 2019

'Reaffirming our EM views after a rally'

By Janice Roberts

By BlackRock Investment Institute. One beneficiary of a perceived easing in the U.S.-China trade conflict: EM debt, which has rallied recently and outperformed developed market peers. We see factors further supporting EM debt from here: a likely Fed rate cut this week and the potential for a stable U.S. dollar; an EM growth rebound; and...