Daily Management Review

Investors divested € 38 billion from European funds amid trade war fears


In June, European investors were withdrawing cash from mutual funds at the fastest pace in almost five years. The outflow was € 38.3 billion amid fears of a global trade war, the Financial Times reported.

Equity, bond and money market funds based in Europe saw a net outflow of at least € 11 billion in the last month, which was the worst result since September 2013, according to Thomson Reuters Lipper.

The flight of investors took place against the backdrop of an aggravation of the trade conflict between the two largest economies in the world. Investors fear that the prolonged US trade conflict with China could disrupt the global supply chain and adversely affect the growth of the global economy.

The head of research Lipper Europe, Middle East and Africa Detlef Glow is convinced that the outflow was provoked by increased insecurity. Investors are afraid of possible trade wars and growing political differences between Iran and the US, which could lead to higher energy prices and, consequently, higher costs for companies. 

June was the second month in a row, when there was a net outflow from long-term funds in Europe. Previous inflow of funds had been lasting during 16 months.

Peter Slip, stock manager of the British asset management company Seven Investment Management, told the FT that the outflow occurred while many markets were under pressure, but noted signs of improvement in July.

"We can blame political uncertainty, trade frictions, the strength of the US dollar, higher interest rates, etc., in the weakness of markets in June 2018, but we had pretty good markets for about 18 months, so it's no wonder they took a breather ", - he said.

In June, US President Donald Trump said that he instructed the US trade representative to prepare a list of Chinese goods worth $ 200 billion, in respect of which additional duties of 10% may be imposed.

On July 6, the previously promised US duties of 25% on imports of Chinese goods for $ 34 billion entered into force. Soon after that, Beijing introduced reciprocal duties on American goods.

source: reuters.com

Science & Technology

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

Apple Patents A ‘Foldable Screen’ For Creating Foldable iPhones

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”