Welcome to this quarter’s Global Markets Report, with an introduction from your Co-Chief Investment Officers, Eren Osman and Gregory Perdon.

Our report discusses general developments within global markets over the third quarter of 2019, with a focus on the issues influencing portfolios. Following an economic and market summary, we expand upon a number of themes before concluding with a review of the major asset classes.

In this edition:

Negative Yields: Return-Free Risk
Oliver Murray looks at the implications of negative or low yields across the government and corporate debt markets and the transition from a risk-free return to a return-free-risk. This article looks at the opportunity cost of holding negative yielding debt and its relative attractiveness in an ever later-cycle market.

Does the German engine need an injection of fiscal fuel?
As its manufacturing sector continues to show signs of weakness, Edward Johnstone looks at the German economy, the value of the black zero and the chance they may drive their way out of trouble.

Why is Global Productivity Failing?
In this article, Mark Sandey examines how economists calculate global productivity, the historic downward growth trend identified and looks at problems down the line for China.