HSBC Holdings PLC

2016 has mostly been about macro trends, thus presenting a different set of challenges for active fund managers who mostly focus on companies rather than economic and sector trends.

With household spending gathering pace, it could be an important growth driver for the United Kingdom’s economic growth.

At the close of December 2013, the S&P 500 was up 29.5%, the Dow Jones Industrial Average (DJIA) was up 26.5%, the Nasdaq was up 38.2%, and the Russell 2000 was up 37.0%.

Mario Draghi, president of the European Central Bank, reaffirmed the ECB’s plan to provide a fresh monetary stimulus in December to boost inflation in the region if needed.

PayPal reported that its payment transaction per active account increased 12.0% year-over-year in 1Q17.

The financial sector has contributed heavily to the UK economy. Financial institutions like HSBC and Barclays will face challenges doing business in the EU.

On August 18, the annualized CPI showed an increase of 0.1% and beat the forecasts. The clothing and footwear sector drove the increase in inflation.

The UK economy thrives on its robust financial sector, which is boosted by revenues generated from the North Sea, a region rich in energy resources.

The pound sterling ended on a slightly positive note against the US dollar on November 17, even though the inflation levels fell on an annual basis in October.

The Bank of England’s MPC voted to hold interest rates at 0.5%, which strengthened the pound sterling against the euro and dollar. The EWU rose by 0.89%.

SABMiller (SAB) gained 1.30% and topped the iShares MSCI United Kingdom ETF (EWU) on September 28.

GDP (gross domestic product) growth was expected to rise in Q2 on the back of the monetary stimulus from the ECB to boost economic activity.

The United Kingdom’s weaker services PMI was due to slower improvement in new business orders, domestic demand, and export orders in May 2017.

US corporates were the highest issuers of high-grade bonds in August 2015, making up 35.4% of all issues. Yankee bond issuers came in second.

The growth of the ASEAN member nations has been extraordinary, to say the least. The GDP for the region expanded at a whopping 313% between 2001 and 2013.

The situation for the pound sterling in 2016 is similar to the US dollar’s situation in 2015. The markets are expecting a rise towards mid-2016.

Cyclical unemployment is a product of business cycles. A business cycle refers to periods of expansion or recession. In Europe’s case, weak gross domestic product (or GDP) data across the 18-nation economy continues to reflect the Eurozone’s weakness.

A sovereign debt crisis is a situation where economic and financial problems are caused by a country’s inability to pay its public debt. This usually happens when a country reaches critically high debt levels and suffers from low economic growth.

Structural unemployment occurs for numerous reasons. It’s usually due to a lack of requisite job skills among workers. It can also be caused by a lack of workers’ willingness to work because of existing low wage levels.

Bridgewater Associates, which is managed by billionaire investor Ray Dalio, has warned its clients that a Brexit win could spread among EU countries.

Let’s now take a look at specific risks that could arise for businesses as a consequence of Brexit.

Today, HSBC (HSBC) cut its price target on Apple (AAPL) to $174 from $180.

For LyondellBasell, 30% of the analysts recommended a “buy,” 65% recommended a “hold,” and 5% recommended a “sell.”

Consistent growth in the cloud and mainframe systems enabled IBM to post a lower-than-expected fall in its revenues in 3Q17.

About 45.0% of the analysts covering Praxair (PX) stock have recommended a “buy,” and 50.0% have recommended a “hold.”

The latest analyst consensus indicates LYB’s 12-month target to be at $94.83, implying a potential return of 17.2% from the closing price of $80.89 as of June 26, 2017.

On its own stage across the Atlantic from the US Fed, the ECB (European Central Bank) has had its own quantitative easing program.

European stocks are expected to rise in 2017, but you need to be cautious of unexpected political outcomes in 2017.

On March 6, 2017, Olin (OLN) announced the pricing of its $500.0 million senior notes. It said the notes will be issued at 100.0% par value.

Of the 25 analysts covering Emerson Electric stock, three analysts gave the company a “buy” rating, 17 analysts gave it a “hold” recommendation, and five analysts recommended it as a “sell.”

The Office of National Statistics published the retail sales for June at a six-month low. Retail sales fell by 0.9% on a month-over-month basis.

The USAA International Fund (USIFX) is right in the middle of the pack as far as its point-to-point returns for YTD 2016 are concerned—it is placed sixth.

Dell Corporation issued Baa3/BBB- rated high-grade bonds worth $20.0 billion via six parts on May 17.

Investment-grade corporate bonds worth $51.4 billion were issued in the primary market in the week ending May 20, 2016.

According to George Soros, the Chinese property and construction bubble can grow and feed itself like in the United States in 2005–06.

The Vanguard European Stock Index Fund – Investor Shares (VEURX) fell 2.4% in 1Q16, which placed it in the middle of the pack of the 12 funds in this review.

The rise in the pound-dollar pair’s implied volatility has been a strong 26% compared to a fall of 10.5% in the euro-dollar exchange rate volatility.

MACSX has existed since September 1994 and has an expense ratio of 1.1%. A minimum of $2,500 is required to invest in this fund.

International mutual funds are the most convenient way to spread your investment across companies in all major economies.

High-yield bonds, also known as Junk bonds, have an iffy repayment ability, even if they are at the higher end of the junk rating scale.

VWEHX looks like one of the safest funds to be around in case liquidity dries up temporarily. The fund mainly avoided investing in the deep end of the junk category.

The United Kingdom will hold a referendum by the end of 2017. It will decide whether to stay in or leave the EU. The referendum is a nationwide voting system.

Policymakers feel that the ECB monetary policy actions have been effective and have contributed towards their objective.

The AQR Managed Futures Strategy Fund STR I (AQMIX) uses the modern alternative hedge fund strategy “Managed Futures” for investment purposes.

The British pound fell sharply against the US dollar on December 2, 2015, due to negative manufacturing and construction PMIs for the month of November.

The pound sterling ended on a lower note versus the US dollar on November 27, 2015, as GDP growth in the third quarter slowed in line with expectations.

Deutsche Bank operates under five segments. Corporate Banking & Securities contributes 50% to Deutsche Bank’s revenues.

The Household and Non-Profit Institutions Serving Households saving ratio was estimated to be 4.70% in the second quarter—compared to 4% in the first quarter.

On August 20, 2015, Oracle (ORCL) announced the acquisition of Maxymiser. The financial details of the deal weren’t disclosed.

All major US exchange-traded funds tracking Eurozone equity fell on August 11 as the ZEW Indicator of Economic Sentiment came out for August.

The iShares MSCI Emerging Markets ETF (EEM) extended its gains from early April into last week ended on April 17, 2015.

Ally Financial (ALLY) provided financial services and products to auto dealers in the US. It issued $1.25 billion in BB+ rated senior notes in two tranches.

When the rate does rise, it will mean an increasing interest rate environment, where corporate issuers may be required to pay more interest to creditors.