insights.

Gold’s traditional role as a portfolio diversifier continues in the late economic cycle, with few alternative safe havens to the precious metal.

This edition of the FX Monthly explains that not all currencies are created equal in the realm of Federal Reserve easing. Some are likely to flourish and some, to fade.  

Lombard Odier has been developing sustainable investment strategies for over 20 years. We want you to reap the benefits of our experience, allowing you to invest in high-growth, high-quality sectors whilst having a positive impact. 

The youth of today are in revolt. Greta Thunberg’s driving forward a climate change movement, Flore Vasseur’s producing powerful documentaries, Laalitya Acharya’s developing revolutionizing technologies to increase access to energy in developing countries and Boyan Slat’s organizing large-scale initiatives to get rid of the ocean's plastic.

How did B Corp become such a monumental movement? How does the certification process work? What’s at stake for the private sector in joining the cause? Get to know B Lab and Jonathan Normand, B Lab (Switzerland) Executive Director, in an exclusive interview here

Lack of progress in Swiss-EU bilateral negotiations has resulted in the loss of EU equivalence for the Swiss stock market. Will the UK and its trading market suffer a similar fate post Brexit? Is the future shape of European markets being tested?

In Kapsitwet, farmers are seeing their incomes increase. How? By the launch of an innovative sustainable investment model called the Livelihoods Carbon Fund. Margaret Muchanga, a local farmer, sees a path to prosperity “I can now sell my own produce” she shared. Discover the full story here

For the second time, Lombard Odier has received top honours at the prestigious Euromoney flagship awards. Named “Western Europe’s Best Bank for Wealth Management”, we are honoured that our client commitment, sustainable approach and marking activity has been commended.

Looking ahead this quarter, we are not expecting a pickup in the global business cycle given the trade-induced slowdown we are experiencing. Emerging markets could suffer due to ongoing trade tensions and Europe is a rather mixed macro-economic picture. Discover our key highlights and the full report here.

The mining industry has a problem. Its productivity has drastically decreased, its environmental footprint is high and rare minerals are in high demand. One solution is artificial intelligence. Discover here how some companies such as DataCloud and Newtrak address the sustainability equation by making the process more efficient.

Our achievements over the last 12 months have been rewarded with another prize – this time “Wealth Manager of the Year” from Global Investor magazine, at their Investment Excellence Awards 2019.

We present our key asset allocation views and refresh the ten strongest convictions for the remaining six months of the year.

Tackling cancer requires funding from many sources. As technology continues to evolve, we discussed the power of artificial intelligence in science, the way our portfolios are invested in the field of oncology and the growing role of philanthropy with world-renowned specialists. Discover their point of view here.

An exciting opportunity for investors, sector leaders and experts to discuss the future of life sciences – Lombard Odier sponsors the annual CEO and Investor Forum of the UK BioIndustry Association. Read why here.

The US and China have agreed to resume their trade talks post-G20. Will global trade recover? We discuss the latest developments and shed light on our portfolio positioning.

Global debt has reached record levels. Does it pose a threat to the world’s economies? Have we reached the limits of the debt-driven growth model? Our macro strategist Stéphanie de Torquat discusses the sustainability of debt in this latest white paper.

Our wealth technology solutions scoop us another prize – this time at the PWM Wealth Tech Awards 2019 – a division of the Financial Times. “Our technology allows us to enrich and deepen the conversations we have with clients” said Arash Sorouchyari, our Head of Technology Platform Strategy and Design.

The US-China trade dispute is the biggest immediate risk to the global economy. Ahead of the G20 summit in Japan, we analyse three scenarios for the evolution of US-China relations and dissect what each means for our asset allocation.

“The World Bank estimates that intangible capital may make up between 60% and 80% of total wealth in most developed countries. Ignoring this immense source of wellbeing is to act blindly”, states Dimitri Zenghelis, Senior Visiting Fellow at the Grantham Research Institute, LSE. We cannot measure the wealth of a nation based only on its annual income, we need to look at natural and social capital.

Unless tensions in the Gulf between the US and Iran can be quickly defused, the situation is compounding existing trade risks to the global economy. All eyes are now on the G20 and OPEC meetings ahead.

We held a round table debate on the merits of B Corp certification. Why do firms do it? Does it help their business? At Lombard Odier, we are proud of our B Corp certification and to be a part of the corporate sustainability revolution.

The odds of the Fed moving closer to an easing cycle have increased. What does it mean for the US dollar and other major currencies? We expect a gradual EURUSD appreciation, maintain a constructive view on the yen and substantially revise our forecasts for GBP. Read more in our June 2019 FX Monthly.

As vacations draw nearer, we should seriously consider opting for sustainable fashion. The fashion industry has a dark side that contributes up to 8 % of global greenhouse gas emissions. This is why some eco-conscious entrepreneurs have decided to shake things up and rethink the industry. From bags made with pineapple leaves to sustainable swimwear, we met Allure Sauvage and Julienne, two Swiss entrepreneurs committed to developing sustainable fashion.

Conventional methods of catering to basic human needs such as housing and clothing will have to be reimagined and new sustainable materials, often from unexpected sources, are promising to make a dent in the challenges facing humanity. Find out more here on how sargassum, a seaweed most likely found on the beach, hemp, mineral wool derived from volcanic rock, pineapple leaves and recycled plastic might well be the new norm in these industries.

Nobel Prize Winner, Jean Tirole, discussed solutions to market failure and carbon pricing at our LO Generation Summit, held in Venice. Concrete answers to global warming, carbon emissions and rising inequality were debated amongst prominent thought leaders.

Germany, Switzerland, two export-dependent economies with varying fortunes. While Germany’s economy has come close to recession, despite a weak euro and needs concerted investment in the country’s infrastructure, Switzerland’s exporters have proven resilient and adapted to a strong franc.

At the Venice Biennale 2019, sustainability plays an important role as many artists took to their craft to comment on the state of the world. The Nordic pavilion depicts human negligence towards other species, Anthony Hernandez points out the obsessive over-consumption that is plaguing our society and Jimmy Durham displays the drastic near extinction of our ecosystem. It's time for a change. More here.

Global trade disruption, escalating as the US applies more tariffs, remains the single greatest threat to the world economy. It increasingly looks like the wrong weapon and the wrong target.

The European Central Bank has started to acknowledge the adverse impact of negative interest rates on banks. Can the eurozone’s monetary authority implement more easing policies at this stage? In our view, the ECB will most likely focus on TLTROs and a tiered reserve system.

On World Environment Day, our Head of Corporate Sustainability Bertrand Gacon, discusses how we should rethink our consumption and production models. From eliminating waste to eco-design, he explains how consumers and businesses can stand to benefit and help protect our planet for the future. Read his thought leadership piece here.

Faced with a choice between backtracking on election pledges and further destabilising Italy’s coalition government or a fight with the European Commission over budget deficits, the Italian government looks set for confrontation with the eurozone’s guardians.

While investors might be concerned about prospects for a yuan devaluation, we believe that the bar is set high for such a move. Opting for the currency stability seems like a more plausible scenario for China. Find out why in our latest investment strategy bulletin.

Why Lombard Odier is sponsoring the ground-breaking UK life sciences sector.

What do the EU elections mean for markets? In our latest investment strategy video, we analyse the outcome and shed light on the next risk events, Brexit and US-China trade tensions.

We hosted our inaugural LO Generations Summit where thought leaders were invited to find concrete solutions to conquer the climate crisis. Nicholas Flanders talked about converting CO2 into valuable produce, architect Alfredo Brillembourg builds cities for communities and David Rosenberg takes vertical farming to the next level. Read more here.

The European elections took place but the fear of a wave of “populist” parties emerging, in a way that would alter the path of European politics, has failed to materialise. The results suggest that the EU two party majority might have been broken and anti-establishment parties did make gains but were quite limited. Read the full article here here.

Three emerging democracies, India, Indonesia and South Africa, have returned incumbent leaders to office, delivering opportunities for reforms. Once the geopolitics between the US and China are resolved, we believe that there will be opportunities for investors to re-build positions in emerging market assets.

Designer Mathieu Lehanneur explores our relationship with the natural world and the ocean in his work for his exhibit for DYSFUNCTIONAL, at the Ca’ d’Oro Palazzo, unveiled during the Venice Biennale 2019.

The Brexit saga continues. The downside risks to sterling are materialising at a rapid pace, and have now become our near-term central scenario.

Sustainability is the recurring thread at DYSFUNCTIONAL, an exhibition at The Ca’d’Oro Palace during this year’s Venice Biennale. The sustainability movement is monumental and it affects all spheres, including art and design. Many world-renowned artists took to the stage to raise awareness on the climate crisis in the context of Venice and other pressing sustainability issues. DYSFUNCTIONAL seeks to compel the visitor to rethink their view of the world and art. Discover it for yourself here.

In the light of recent US-China tensions, we have modified our FX views. Close attention is given to the deterioration of the euro and GBP’s instability. We also discuss the ascension of the JPY as one of the main beneficiaries of the latest market events.

As 370 million European voters go to the polls to elect a new Parliament, two mutually exclusive visions for the world’s biggest trading bloc, reform or overturn, are increasingly polarising politics. What are the implications for the European Union?

Lombard Odier is pleased to announce the arrival of Mr. Stephen Kamp as Chief Operating Officer (COO) for private clients.

On May 19th, the Fondation Lombard Odier rewarded six young individuals with the 20th Extraordinary Voyages Prize, allowing them to achieve their dream travel experience and encouraging creative projects and initiatives.

What a week for Donald Trump. His tweets and ongoing trade war with China has resulted in a standoff. We do not expect a resolution by June, due to tensions on both sides, but at least both sides are willing to continue negotiating. Read more on our FX positioning.

As the US escalates trade tensions with China, a face-saving compromise is looking remote. Unless the world’s two largest economies can reach a solution, the trade row looks like the greatest immediate threat to global economic stability.

The earth’s oceans are in peril. Overfishing, oil exploration and other harmful practices have derailed their fragile balance. Now, in order to save our economies and ourselves we must work to preserve our oceans and help them regenerate. Welcome to the Blue Economy.

Patrick Odier, our Senior Managing Partner, looks back at the Lombard Odier’s long history of sustainable thinking. From the 90s to today, discover how our sustainability positioning has grown and developed into leading the bank into becoming a B Corporation.

Our Managing Partner, Frédéric Rochat, talks to Bilan about our DYSFUNCTIONAL exhibition, a collaboration with Carpenters Workshop Gallery, the Venice Biennale and our passion for preserving heritage, art and innovation.

Welcome to DYSFUNCTIONAL. Discover the 22 internationally acclaimed artists’ work inspired by the Ca’d’Oro palazzo. Sustainability plays an important role for this exhibition with pieces calling the visitor’s attention to the issues of rising sea levels and plastic pollution. From a flower made light installation to a 128 interactive mirror exhibit, go through a thought-provoking journey into the artists’ interpretation of nature, innovation, history, time and sustainability. With DYSFUNCTIONAL, we take you to a unique experience into Venice’s finest architecture setting, the Galleria Giorgio Franchetti.