insights.

Angela Merkel, the European Union’s longest-serving incumbent leader, announced last week that she would step down as head of Germany’s Christian Democratic Union (CDU) party in December and won’t run again as Chancellor.

Lombard Odier sponsored the prize for best use of technology in the digital economy. The award picked out companies that have best harnessed the power of online tools such as mobile, social media, the cloud and Big Data to enhance and transform business models.

This year marked the 222nd anniversary of Lombard Odier in Tokyo and the milestone was marked at the annual Asia gathering with a series of talks and discussions about how family business can succeed through the years

In the past, the exchange of goods or services often occurred without money changing hands. In fact, it was done using “bartering." Today it might seem like a lost art but bartering could, in fact, be making comeback.

The past quarter has proved tough for risk assets, with emerging market turmoil and mounting uncertainties weighing on performance. The most meaningful bastions of strength have been the US economy and stock market, in part thanks to the ongoing fiscal package.

The frenzy of big data is settling down. Companies that want to be ahead of the technological curve are now focusing on the most sophisticated ways of applying this data for their own benefit and their clients.

African Philanthropy is entering a new era. A hotbed of innovation, it can make a decisive contribution to addressing the continent’s challenges, and also inspire work in other parts of the world.  Aligned with the general formalisation and greater impact orientation of philanthropy, African self-made entrepreneurs are now also engaging in structured giving and are promoting the discourse of “giving back” to the benefit of individuals, communities and countries.

Emerging markets are enduring their most challenging year since the 2014-2015 commodity collapse, amid rising US rates, a stronger dollar, mounting trade tensions and a slew of domestic political risks.

Changes in society can sometimes feel like they are happening at a lightning pace. Focus can shift from one industry to the next while debate around events in our world is constantly evolving. But as many features of our everyday life develop, how can we maintain and carry on the success of our forefathers?

In a historic shift for the country, Brazilian voters have elected Jair Bolsonaro to lead the country for the next four years.

The success of the Fribourg office reflects Lombard Odier’s strong growth in the Swiss market, which is primarily down to its dedicated services for Swiss clients

Changing climate patterns are having a big impact on our habitats and our behaviours. Ed Crooks, US Industry and Energy Editor for the Financial Times travels across the United States to explore vulnerable coastal cities that are suffering from the destabilising impact of severe weather patterns, and its consequences on real estate markets. This is a concept known as “climate gentrification”.

These are very different times in how companies do business. Shareholders are in a better position than ever to affect change and to help plot a course to sustainability.

Abe’s re-election as president of the Liberal Democratic Party means that he is almost certain to become the longest-serving Prime Minister in Japan’s history.

The world is changing. The next economic revolution is underway and it is driven by sustainability, and it is perhaps the biggest investment opportunity in modern history. Businesses and industries need to transition or they will be left behind.

Improvements in healthcare and standards of living have led to the average age of populations creeping up. And with that comes changes to every corner of society.

Throughout 2017 markets enjoyed a ‘Goldilocks’ economy in the US with neither-too-hot-nor-too-cold conditions for strong returns thanks to synchronised growth and low inflation1. This year, we entered the late phase of the economic cycle as the metaphorical market porridge started to overheat. If investors are to avoid burning themselves, wealth managers need to provide the tools to defend portfolios from the inevitable illiquidity of a bear market.

Article published in Indices, (L’AGEFI), October, 2018, by Stéphane Pedraja

Entrepreneurs devote their lives and energy to their business, which means they don't always have time to focus on the finer details of managing, planning and organising their wealth.

Article published in PME Magazine, September 24, 2018, by Edouard Bolleter

Two specialists from Lombard Odier answer questions that business owners should ask themselves in the run-up to retirement.

Vontobel acquires international US-based private clients portfolio from Lombard Odier.
Lombard Odier to refer future US-based private clients searching for a highly qualified, SEC-registered Swiss wealth manager to Vontobel.
 

Eurozone economic growth has slowed this year but is still broad-based, with all countries participating in the upturn, and firmly above potential. Lesser external demand accounts for much of the slowdown – the Eurozone being more open than most other large advanced economies.

In this article, we look at the economic situation in China, the state of relations between the world’s two largest economies and the implications for investors exposed to the yuan and emerging currencies.

Too much negativity seems to be priced-in. Based on our central scenario of a slowdown with no major global downturn and lower US real yields as inflation picks up, the hefty misalignments in some commodity FX with underlying fundamentals offer attractive opportunities.

Strong growth momentum, ongoing fiscal support, a tight labour market and mounting inflationary pressures all suggest that the Fed will deliver on its plan to further tighten monetary policy over the next few quarters. While a number of risks are worth monitoring, the determinant factors for US monetary policy will remain domestic inflation and employment.

For too long most professional investors operated on the basis that it really did not matter if the businesses they backed damaged the environment, or our health or our living standards. So-called externalities were the business of government to sort out. Investors’ responsibility was simply to evaluate whether shares were good or bad value on the basis of whatever financial metric they preferred or was fashionable. But the rise of populism, and the associated life-or-death challenge to economic liberalism, means that the prudent investor can no longer sit on the sidelines and ignore the benign and toxic spinoffs from corporate conduct. Sustainable investing means harnessing the power of capital to foster a sustainable society.

What will the children of today - the investors of tomorrow - want from their investments? The answer - an awful lot. The next generation look like they will be more socially and environmentally engaged than the last few. They know they are stakeholders in the future of the world rather than just shareholders in the world’s listed companies. So, while they are sure to still want to make financial returns from their cash, they are also likely to want to see good come from the way in which their money is invested. What kind of good? The answer to that is going to be different for every investor. That’s why the future of investment is a collaborative one. If the financial services industry wants to serve the next generation properly, it must spend less time assuming it knows what the young want and more time asking them what they want

It is the starkest warning of recent history. The world needs to make "rapid, far-reaching and unprecedented changes in all aspects of society" over the next decade in order to keep climate change at bay and limit the threat of a raft of natural disasters affecting millions of people.

The Family Business Network (FBN) and Lombard Odier have rewarded three exceptionally promising young family business entrepreneurs as finalists in the 10th FBN NxG Lombard Odier Award. The finalists had the opportunity to pitch their projects to over 500 family business leaders at the FBN 29th Global Summit in Venice on 12th October, where the overall winner was revealed.

Our central scenario does not foresee a major downturn over the next year or so, only some deceleration in world economic growth. The balance of risks is nonetheless becoming less favourable, owing to tighter US monetary policy and the escalating trade dispute between the two economic powerhouses. A progressive reduction of portfolio risk is thus warranted, towards a more neutral positioning.

The next economic revolution is already underway. The most fundamental shift in the history of humanity. And this revolution bears the name sustainability. It’s more than just an environmental issue.

Tech is transforming the face of philanthropy younger, faster, higher impact.They are digital natives, and want engagement – volunteering time for fundraising, crowdfunding or fieldwork – plus storytelling of causes that should be tweetable and repeatable.

Brent crude oil is trading close to a four-year high, at USD 84¹ per barrel, while commodity markets are more widely experiencing their longest losing streak in more than three years. This dispersion between commodity returns is wide and needs investors’ attention in portfolios in a strong dollar environment and rising US interest rates. While crude oil has gained more than 26% since the start of 2018, the broad Bloomberg Commodity Index has fallen around 1% over the same period. In this article, we look at the supply and demand dynamics on the oil market, the impact on inflation and the implications for investors in three market scenarios.

Discover our latest investment insights from Stéphane Monier, CIO Private Bank, and Samy Chaar, Chief Economist, in our quarterly investment strategy video.

Every year, France Digitale unites investors and startups in Paris to discuss the latest digital trends and future innovations. An annual event to delve deep into the digital world and sustainable innovation.

My LO puts Lombard Odier’s cutting-edge, in-house technology into your hands, in a user-friendly platform developed alongside our clients and our bankers. My LO, a simple and secure platform for monitoring your wealth.

From the depths of the ocean to in-depth cancer research, Lombard Odier’s philanthropic partners shared experiences and vision at the tenth anniversary celebration of Fondation Philanthropia.

Sustainability issues were once seen as irrelevant to companies and investors, an inconvenience incompatible with the business of making money, except for a few 'responsible' investors who were happy to accept lower returns in order to 'do the right thing'.

The 10th anniversary of Fondation Philanthropia raises the benefit of ‘sheltered funds’: a modern concept that favours collaborative, innovative and enlightened generosity and that increases the impact of each donation tenfold. They are democratizing access to philanthropy.

Central bank policies since the 2008 financial crisis have fuelled the longest bull run in history and created the conditions for an era of stable economic growth. Interest rates were kept low and quantitative easing (QE) ensured a flow of money into the system. That gave us reassuringly steady investment returns, while debt-to-GDP ratios rose across the world.

Tech startups are well known for their capacity to disrupt entire markets by addressing some of their flaws, inefficiencies or failures. In some cases, these market inefficiencies have huge consequences on the capacity of citizen to access the most basic services, or generate decent revenues for them and their families.

Article published in L’Agefi, September 3, 2018, by Laurent Pellet

The new Financial Institutions Act (FinIA), which is in the process of being passed by the Swiss parliament, recognises External Asset Managers (EAMs) as a genuine profession. What impact will this regulation have on the bank’s activities in this area?

Article published in Allnews, September 18, 2018, By Stéphane Monier

Private clients’ investment needs are changing as a result of legislation, regulations and the reorganisation of private banking, as well as a new, more responsible approach adopted by a growing proportion of clients.

Article published in 24 heures, September 19, 2018 , by Samy Chaar

Samy Chaar, Chief Economist of Banque Lombard Odier & Cie, gives his analysis of the trade negotiations with the EU. It is likely that Switzerland will have to bend to the will of its principal economic partner in trade negotiations with the European Union.

The global move toward sustainability — and tackling challenges such as climate change, inequality and demographic shift — continues apace but there is a marked contrast in approach from the world's superpowers.

The next economic revolution is already underway, which we believe could be the biggest driver of investment returns in the next three years and beyond.

Brazil’s voters go to the polls for the first round of general elections on 7 October in a race closely watched by investors looking for signs of fiscal improvement. High on the priority list for the eventual winner is the urgent need for pension reform to limit the country’s debt, which we consider an important risk in Brazil.

Article published in NZZ , September 13,  2018

Digitalization will make private banking even more personal and tailored. Thanks to their agile structures as well as their resource and financial strength, private banks have a decisive competitive advantage.

The Federal Reserve's tightening process is well under way – and well ahead of other major central banks. Despite the tightening steps already taken, and a well advanced economic cycle, signs of slowdown in the US economy are still mostly absent.

Article published in Le Temps, September 9, 2018

It can be hard, sometimes, to block out the noise and focus on what really matters. But, when it comes to emerging markets, this can be an incredibly useful skill for investors looking for attractive long-term opportunities.

Italy’s populist politics are again destabilising the Eurozone as the country’s new government prepares a domestic budget and threatens to withhold its payments to the European Union, undermining investor confidence.