Studies and reports

The Fed is slowly coming around to the reality that its own tightening regime and a strong US dollar are increasingly incompatible with financial stability, and it kicked off 2019 with a loudly dovish downshift in its rhetoric. But it may take some time for the Fed to execute a full reversal of its tightening course, and the lack of bright spots elsewhere in the global economy as the year gets under way may mean that the path to a persistently weaker USD is a rocky one in 2019.

On a trip to the UAE this month, VMware’s Jean-Pierre Brulard, Senior Vice President and General Manager EMEA, talked about how 2019 will be the year for the UAE to adopt Artificial Intelligence (AI) innovation in order to fuel nationwide digital transformation.

UAE business leaders and HR heads are re-looking traditional office real estate strategies in line with demands of top talent, according to a recent study by International Workplace Group (IWG), the parent group of leading workspace companies including Regus.

Currencies

US Fed looks dovish

The catalyst behind the Euro’s sharp rise against USD on Friday was a report that said Federal Reserve officials are nearing a decision on when to end its balance sheet reduction. This is an important consideration for investors because it will allow them to assess the strength of the Fed’s monetary policy tightening. Ending its program to reduce its balance sheet combined with the decision to leave interest rates unchanged at next week’s meeting on Wednesday, January 30 sends a dovish message to traders, making the U.S. Dollar a less attractive investment.

New savings and investment products that are easy to understand and available to everyone are urgently needed, according to a new report by ICAEW. In ‘Audit Insights: Investment Management’, the accountancy and finance body warns that indecipherable statements, high fees and a perception of exclusivity mean many feel alienated from the investment management industry when they need it most.