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A week of contrasts across global equity markets. European and US indices delivered largely stable performances, ranging from modest declines in Switzerland, the UK, France, Spain and Italy to slight gains in Germany, Denmark, Finland, Canada and the US. The standout trend was the strength of US small caps. The Russell 2000 outperformed larger-cap benchmarks, buoyed by a record earnings season that reinforced the narrative of broad-based economic momentum beyond the technology giants. Meanwhile, the Magnificent Seven index slipped 1.0%. Beyond developed markets, Latin America was generally weaker, with Colombia and Venezuela among the few positive performers. In Asia, China lagged while most regional markets advanced. South Korea posted a remarkable gain of more than 11%, led by Samsung, Hyundai and SK Hynix. Follow us for more expert insights.

For a long time, private banking lending has been mostly driven by growth, on both sides of the balance sheet. Today, it is increasingly driven by capital efficiency. As Basel III final reforms continue to be implemented across major jurisdictions, banks are reassessing the economics of Lombard lending, real estate financing, and bespoke credit solutions for wealthy clients. The institutions that adapt fastest may gain a significant competitive advantage. Fernando Zavatarelli, Head of Credit, signs our August Market Insight: https://lnkd.in/edDZDsqt

AI continues to shape market sentiment, and investors remain divided on one key question: will unprecedented spending justify current valuations? Alphabet’s strong results, supported by robust cloud growth and increased capital expenditure plans, initially lifted AI-related equities and semiconductor stocks globally. Yet enthusiasm proved short-lived. As questions around the profitability of hyperscalers’ AI investments resurfaced, technology shares came under renewed pressure later in the week. European gains were concentrated in semiconductor names such as ASML and Infineon, while Nokia highlighted robust AI-related demand. Follow us for more expert insights.

Europe’s economic confidence just surprised on the upside, beating estimates thanks to stronger service sector optimism, even as industrial confidence took a hit. Inflation rates show a varied picture: Spain at 3.2%, France 2.0%, Italy and Portugal 3.1%, and Germany 2.4%. The Eurozone’s overall inflation came in at 2.8%, below expectations, hinting that rising energy costs aren’t spilling over into the broader economy as feared. On the PMI front, manufacturing and services are expanding in Italy, France, Greece, the UK, and the Eurozone overall, though services in France, Germany, the UK, and the Eurozone are still facing contraction. The takeaway? Europe’s economy is navigating challenges with resilience, showing pockets of growth even amid uncertainty. Follow us for more expert insights.

For nearly a century, we have been computing on technologies governed by a physics no one has truly understood, quantum mechanics, yet using a strictly binary logic. In 1935, Einstein himself refused to accept its strangeness. A year later, Alan Turing imagined a single machine able to carry out any calculation a human could, the theoretical blueprint of every computer that followed, and in the same stroke he traced the outer limits of what computation can ever reach. After decades confined to theory, real progress in hardware, error correction and algorithm design is finally making the idea tangible, shifting quantum computing from a scientific curiosity to a genuine long-term investment theme. While the market is still tiny, just over $1bn today, it could exceed $16bn by 2035 as applications surface across pharmaceuticals, finance and cybersecurity. Maxime Revenu, Advisory Portfolio Manager, made it the subject of our July Market Insight: https://lnkd.in/eqerVmwv

This week marks a pivotal moment for the global economy, with major central banks and international leaders addressing pressing challenges. The European Central Bank has unanimously raised its main rates by 0.25% to 2.25% for the deposit rate, aiming to rein in inflation that remains above target. This move underscores the ongoing efforts to stabilise prices amid economic uncertainties. Meanwhile, the current G7 summit will focus on critical geopolitical and economic issues, including securing the strategic Hormuz Strait, the ongoing conflict in Ukraine, and broader concerns such as global economic imbalances, geopolitical instability, and socioeconomic disparities. These discussions highlight the interconnected nature of today’s global challenges. Adding to the significance of this week, fifteen central banks will announce their monetary policy decisions. All eyes will be on the US Federal Reserve, where Kevin Warsh will chair for the first time. Market participants expect the Fed to hold rates steady, while Warsh’s leadership signals potential institutional renewal. Follow us for more expert insights.