The US is now exporting globally both rising inflation and interest rate hikes, which creates problems for countries with a weak financial position and/or a weak trade balance.
The ECB rate decision marks an acceleration of balance-sheet repricing for European banks and should be broadly positive after 10 years of falling and negative rates. But higher rates with lower lending volumes will not end banks’ profitability issues.
Spain was the best performer, growing 1.1% after growth of just 0.2% in the previous quarter, and the main disappointment came from Germany.
If you are still invested at mid-year, maybe the below strategies will help you to survive the summer. Jean-Baptiste FARGEAU, Fund Selection Manager at BLI – Banque de Luxembourg Investments discloses his favorite funds to go on holidays with.