Latest news with #LombardOdierInvestmentManagers
Mint
26-07-2025
- Business
- Mint
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Wall Street ended the week on a positive note, with stocks hitting fresh all-time highs amid solid earnings and hopes for US trade deals. After an uneventful meeting between Donald Trump and Jerome Powell, the Treasury market barely budged. The dollar climbed. In the run-up to the busiest week for corporate results, the S&P 500 rose for a fifth straight day, approaching 6,400. While the rally has stoked concerns about inflated prices amid a rush to risky corners and a revival of the meme-stock mania, many traders say it's hard to bet against the trend. A closely watched gauge of equity volatility - the VIX - closed below 15. 'If you are a structurally bearish investor, the recent few weeks must have felt like a century,' said Florian Ielpo at Lombard Odier Investment Managers. 'Not only are most equity indices advancing in what seems like an endless rally, but their valuations now globally surpass those at the start of the year.' Progress in trade deals, positive economic data and corporate resilience have offset worries that stocks are overheating. More than 80% of S&P 500 companies have exceeded profit estimates, according to data compiled by Bloomberg Intelligence. That's on track for the highest share of beats since 2021. 'The pace of earnings so far this month has been positive, economic data has been hanging in there, and we're even starting to get some sense of clarity on tariffs,' said Bespoke Investment Group. 'You can't fault investors for being optimistic.' Next week will also bring the jobs report, the Federal Reserve's rate decision and a deadline for US trade deals. European Commission President Ursula von der Leyen said she will travel to Scotland this weekend to meet with Trump, as the two sides aim to conclude a deal ahead of an Aug. 1 deadline. 'The market continues its steady climb as many key investor concerns have failed to materialize,' said Mark Hackett at Nationwide. 'While institutional investors who were short on an absolute or relative basis have largely capitulated, positioning still shows little sign of excess.' This suggests that the market momentum has room to build if macro conditions improve or even stabilize, Hackett noted. 'It's been a very, very active year for retail and just in the past month, I'd say, has been the craziest month that we've seen, so it is the return of meme stock rallying, sharp increases in really small companies picked up by Reddit channels and things like that,' said Sam Nofzinger, Public's general manager of brokerage. Goldman Sachs Group Inc.'s trading desk said its clients are growing 'more comfortable' betting against shares of unprofitable tech companies, following a resurgence of meme-stock mania that's sparked rallies in a cohort of smaller names. 'With the market pushing to new highs and volatility falling to its lowest levels since February, two of the major challenges facing investors are complacency and the urge to chase the market,' said Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy Team. The risk of a bubble in stock markets is rising as monetary policy loosens alongside an easing in financial regulation, says Bank of America Corp.'s Michael Hartnett. From a technical standpoint, Craig Johnson at Piper Sandler keeps his bullish view, citing factors such as improving market breadth and many of the popular averages reaching new highs. Monday kicks off the earnings season's busiest week, with over 40% of S&P 500 companies reporting results. Among the highlights will be several megacaps including Apple Inc., Inc., Microsoft Corp. and Meta Platforms Inc. 'We are seeing some divergence in earnings, but for the most part companies are beating expectations and keeping the stock rally going,' said Chris Zaccarelli at Northlight Asset Management. 'As long as trade policy and tariff headwinds are minor, the market can keep moving higher.' The world's investors are enjoying a confidence boost after months of uncertainty as Trump finally started signing trade deals. Earlier this year, rapidly-shifting tariff policies sent global markets spiraling. But risk assets have rebounded as investors saw signs of progress in negotiations. 'We've already seen a deal with Japan. A deal with the EU is necessary for the equity rally to continue, in our view, but would not be surprise,' said Paul Christopher at Wells Fargo Investment Institute. 'The only surprise would be no deal by Aug. 1.' To Mark Haefele at UBS Global Wealth Management, trade negotiations will ultimately lead to moderate policy. 'We would expect a tariff-led economic slowdown to be mild and short-lived, rather than recessionary,' he said. Trump also noted he would never back a weak dollar while also touting the economic benefits a low currency would bring, particularly for the country's manufacturing sector. While the greenback saw its worst week in July, it's set for the best month in 2025. The Fed released a statement Friday thanking Trump and Republican lawmakers for visiting the central bank's renovation project on Thursday. During his visit, Trump offered little criticism of the project, but urged Fed Chair Powell several times to lower interest rates. Trump says he had a good meeting with Powell, leading the US president to believe the Fed might cut borrowing costs. At Pepperstone, Quasar Elizundia says policymakers are expected to hold steady while signaling sensitivity to global trade conditions and softening investment trends. 'The case for leaving policy on hold has been made by several Fed speakers: inflation remains above target, inflation risks still pervade, and the labor market is near full employment,' said Michael Feroli at JPMorgan Chase & Co. The Fed 'should cut rates next week, but we don't think it will,' said FHN Financial's Chris Low and his colleagues. 'Instead, watch for Chair Powell to use the press conference to prep markets for a cut in September.' 'While Chair Powell will probably keep his options open for September, we think he will emphasize that recent US inflation and employment data make a case for leaving rates unchanged,' said James Egelhof and Guneet Dhingra at BNP Paribas. 'As we have since December 2024, we expect the policy hold to run past year end.' Intel Corp. sank as Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker's technological edge. Microsoft Corp. is investigating whether a leak from its early alert system for cybersecurity companies allowed Chinese hackers to exploit flaws in its SharePoint service before they were patched, according to people familiar with the matter. American Airlines Group Inc. finally has taken possession of its first long-range Airbus SE A321XLR aircraft, but the plane will remain in Europe because of a supply chain issue that's caused a shortage of seats. Paramount Global's merger with Skydance Media was approved by the US Federal Communications Commission. Pinnacle Financial Partners Inc. agreed to acquire Synovus Financial Corp. in an all-stock transaction valued at $8.6 billion, combining two sizable players in the US Southeastern market ahead of a potential wave of banking M&A. Charter Communications Inc. reported it lost more internet customers than expected during the second quarter amid increased pressure from mobile companies' 5G and fiber home internet offerings. Fuzzy Ugg boots and chunky Hoka running shoes saw big sales gains last quarter, bolstering financial results for parent company Deckers Outdoor Corp. Centene Corp. issued fresh annual guidance and laid out a plan to address problems in its Affordable Care Act business, offering investors a ray of hope in a year when insurers across the industry have struggled to cope with rising costs and changing government policies. Sarepta Therapeutics Inc. shares plunged after European regulators rejected its gene therapy Elevidys, intensifying scrutiny on the drugmaker after it was pressured to halt shipments of its treatment in the US. Bristol-Myers Squibb Co.'s chief medical officer is stepping down from his role after six years at the company, a surprise move as the drugmaker races to find its next hit to reverse its declining fortunes. Eli Lilly & Co. won the backing of European Union regulators for its Alzheimer's disease drug Kisunla in a specific group of patients, potentially paving the way for it to become the second drug in the region to slow the most common cause of dementia in the elderly. Newmont Corp. has made progress getting its costs under control, helping the world's top gold miner beat expectations on earnings at a time when a rally for the precious metal is underpinning the industry. Phillips 66 is maximizing diesel production to take advantage of strong demand and would consider investing in projects that give its refineries greater flexibility to tweak fuel output to match changing consumption patterns. Lyft Inc. is partnering with Benteler Group, an Austria-based manufacturer, to deploy autonomous shuttles in the US in late 2026, trying to catch up with rival Uber Technologies Inc. in offering driverless rides. The S&P 500 rose 0.4% as of 4 p.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average rose 0.5% The MSCI World Index rose 0.1% Bloomberg Magnificent 7 Total Return Index rose 0.5% The Russell 2000 Index rose 0.4% Currencies The Bloomberg Dollar Spot Index rose 0.3% The euro was little changed at $1.1743 The British pound fell 0.5% to $1.3436 The Japanese yen fell 0.4% to 147.63 per dollar Bitcoin fell 1.7% to $116,755.58 Ether fell 2.5% to $3,644.22 The yield on 10-year Treasuries declined one basis point to 4.38% Germany's 10-year yield advanced two basis points to 2.72% Britain's 10-year yield advanced one basis point to 4.64% West Texas Intermediate crude fell 1.5% to $65.05 a barrel Spot gold fell 0.9% to $3,337.87 an ounce
Forbes
24-06-2025
- Business
- Forbes
Driving The Trillion Dollar Shift To Plastics Circularity
Every year, around 500 million tons of plastic waste is produced globally. That's almost the total weight of all 8.1 billion people on the planet or the equivalent of 20,000 blue whales in weight. During these turbulent times, it may seem that the environmental transition is threatened by geopolitical rivalries and conflicting economic interests. But, according to experts at Lombard Odier Investment Managers, the transition is unstoppable and ignoring this fact is a risky investment decision. The institutional asset management business of the Lombard Odier Group is based in Switzerland and wholly owned and funded by its Managing Partners since its establishment in 1796. Focus on nature Lombard Odier IM operates on the core principle that sustainable investing will generate long-term returns, driving prosperity for its clients. The company's conviction is that the sustainability transition will profoundly transform key systems, in particular, the Energy, Nature and Materials systems. When it comes to the Materials system, the bank chose to focus on plastic due to its massive market size, rapid transformation and lack of investment attention. Plastic is a synthetic chemical compound made by humans using petrochemicals derived from oil and natural gas. They are comprised of engineered molecules that don't exist in nature, so no natural organisms have yet evolved to break them down efficiently which means they accumulate in the environment and disrupt biodiversity. To address the issue of the harmful effects of plastic, the bank launched the Lombard Odier Plastic Circularity Strategy, a private equity initiative in collaboration with the Alliance to End Plastic Waste (AEPW). The goal is to invest in scalable solutions that reduce plastic waste and GHG emissions across the entire plastic value chain. 'Our mantra is that one man's trash is another man's treasure,' said Alexandre Ouimet-Storrs, Investment Director – Plastic Circularity Strategy, Lombard Odier IM. He was speaking at the recent SAP for Energy and Utilities 2025 conference in Rotterdam. 'Our goal is to close the plastic circularity gap by scaling innovative substitutes to plastics, moving plastic from single use to multi use and finally through increased recyclability.' The weight of the world Ouimet-Storrs made a striking comparison, saying that we humans produce nearly our own body weight in plastic waste each year. 'Every year, around 500 million tons of plastic waste is produced globally. That's almost the total weight of all 8.1 billion people on the planet,' he explained. 'It's also the equivalent of 20,000 blue whales in weight.' Ouimet-Storrs urged the audience to think for a moment. If business continues as usual, our plastic waste would nearly double by 2040, resulting in 50 kg of plastic waste per meter of coastline around the world. It would also deplete 20% of the total carbon budget available to remain under 1.5°C of global warming. Clearly, it's time to shift away from a linear economy that takes, makes and wastes to a circular one that takes, makes, uses and returns. This shift is already under way and unlocking massive investment opportunities across several sectors. A trillion-dollar industry According to extensive research on the economic potential of the circular economy, plastic production, circular business models and recycling plastics is already a trillion-dollar industry. Managing, reducing, replacing, recycling, and innovating around plastic is creating new markets, startups and employment opportunities. Once seen as waste, plastics is now a central issue in economics, innovation, and sustainability. Companies that develop recycling technologies, circular business models, recyclable materials, and waste-to-value innovations are attracting billions in funding. Municipal contracts, private investments, and public-private partnerships are flowing into this sector. At the same time major consumer brands are under pressure to cut plastic use. On top of that, regulations and consumer demands have made plastic pollution a high-profile target for capital. Funds like the Lombard Odier Plastic Circularity Strategy are channeling capital into scalable solutions with the goal of making tier 1 financial returns for its investors 'Our goal is to invest in technology nuggets,' said Ouimet-Storrs. 'These powerful transition drivers are creating momentum in the plastic value chain and ecological transition, offering attractive opportunities for investment strategies, especially in private equity.' LOIM Plastic Circularity highlights Ouimet-Storrs listed some of the solutions supported by the fund. Ouimet-Storrs also shared the three golden rules of impactful investing: Rethink everything Most of all, the team at Lombard Odier IM is urging everyone – from corporate decision makers to politicians to consumers – to rethink sustainability, rethink investment, in short, to rethink everything. 'What we need is a fundamental reassessment of traditional investment paradigms in response to global challenges such as climate change and technological disruption,' said the investment director. By constantly rethinking how the world functions and how best to protect the natural environment, Lombard Odier IM has positioned itself as a guide for achieving long-term, sustainable growth. That's how it provides fresh investment perspectives for its clients.
Irish Independent
27-05-2025
- Business
- Irish Independent
Stock markets rebound after latest Donald Trump tariff U-turn
The picture was much the same across Europe after Mr Trump said he would extend a deadline for talks into July. Markets in London and New York were closed for a long weekend. The Stoxx Europe 600 Index gained 1pc. In Ireland, the Euronext Dublin was up slightly less, with the Iseq 20 index of leading Irish shares gaining 0.92pc, with broad gains across sectors. The rebound came after stocks fell in Europe on Friday when Mr Trump threatened a shock 50pc levy on the EU starting June 1. He had complained that the EU lacked urgency in trade talks and unfairly targeting American companies with lawsuits and regulations. The rebound on Monday came after he agreed to push the deadline for a deal to July 9 following a phone call with European Commission president Ursula von der Leyen. "This is nothing more than the usual 'threat and retreat' that has been the modus operandi of this tariff tennis we have witnessed since the start of the year," said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. "European valuations outperforming in this context and the EUR progressing vis-a-vis the dollar are yet more signs that European stocks continue to look attractive in this high-uncertainty environment." The EU had been slated for a 20pc tariff under the reciprocal rates announced in April, and a temporary pause took the rate down to 10pc through July 9. Ensuing expectations for a trade deal lifted sentiment, with the Stoxx 600 bouncing 18pc from an April low through its recent high last week. Cyclical stocks had a sharp rally. "'Less bad news' has been lifting valuations, but now we need 'more good news' to fuel this rally – good news on both the fiscal front and the growth front," said Mr Ielpo. Among individual movers, Thyssenkrupp AG advanced 8.3pc after it said it planned to become a strategic holding company with independent business segments.
Yahoo
28-03-2025
- Business
- Yahoo
Goldman, BNP See Korean Convertible Boom as Shorting to Resume
(Bloomberg) — South Korea may see a wave of convertible bond issuance once a short-selling ban is lifted soon, thanks to the likely return of hedge funds that are major buyers of the hybrid debt. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes A senior banker at Goldman Sachs Group Inc. (GS) and money managers at BNP Paribas SA ( and Lombard Odier Investment Managers are among those projecting a jump in convertible issuance, which dried up in the wake of Korea's shorting ban in late 2023. The drop was particularly acute in dollar convertibles, popular among global arbitrage investors who typically buy the debt while shorting the underlying stock. 'Lifting the short-sale ban will be a game changer for the convertible bond primary market,' said Arnaud Gernath, chief investment officer of convertible bonds at Lombard Odier Investment Managers. 'Pipeline is still developing and we expect new and former convertible bond issuers to come to the market.' A revival in convertible bonds would offer companies a cheaper funding alternative, as the notes tend to carry lower coupon rates than traditional debt. For investors, the draw is an option to swap the securities for equity if conditions are met. Arbitrageurs would profit from their short position if share prices fall, or can convert the bond if the equity price rises enough. The removal of the short-sale ban, scheduled for March 31, is also expected to normalize pricing in the broader financial market, a positive for companies seeking funding. Selling of borrowed shares will be allowed for all of the roughly 2,800 listed companies, a first since the pandemic-era ban in March 2020. Korea only partially resumed the key hedge fund strategy in 2021, before placing a blanket ban in November 2023. New issues are expected to include notes from both investment-grade companies seeking lower-cost financing and high-yield issuers that have been previously shut out of the bond market, said Christian Lhert, head of Asia-Pacific equity-linked deals at Goldman Sachs. 'There was a healthy level of activity before the short-sell ban, and we expect to see that trend return in a similar fashion.' Korea saw a surge in dollar convertible sales in 2023, when three issuers — SK Hynix Inc. ( L&F Co., and LG Chem Ltd ( raised $4.2 billion in total through November. Since then, Kakao Corp. has been the only issuer in the US currency, according to data compiled by Bloomberg for Korean firms' public offerings. Issues through private placements have also fallen — though not as dramatically as public offerings — since such notes are denominated in the Korean won, making them less attractive for global investors. As convertible sales look set to come back, financing demand may be particularly strong from companies in high-growth industries such as tech and health care, and capital-intensive sectors including materials and industrials, according to Wei Li, head of multi-asset investments at BNP Paribas Securities (China). But once the ban is lifted, companies may opt to sell convertibles after any spike in stock volatility subsides. Korean authorities have put in place guardrails to minimize disorderly shorting bets following the resumption. That may make hedge funds, eyeing arbitrage strategies, hesitant to place big wagers at the start. A Bloomberg index tracking funds that use the convertible arbitrage strategy has gained 13% over the past year, compared with 9.3% for a gauge of hedge fund strategies overall. The revival of convertible sales 'will be like the blessed rain following a drought for companies that are financially distressed,' said Jung In Yun, chief executive officer at Fibonacci Asset Management Global Pte. He expects firms such as Lotte Chemical Corp. ( to resort to convertible bonds to raise capital. —With assistance from Jenny Jiyun Choi, Dave Sebastian and Julia Fioretti. Business Schools Are Back Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
