Equities

Europe’s telecoms are cheap just as Brussels moves to tear down barriers and spark cross border consolidation. Read why this blend of high yield, defensive earnings, and a powerful policy catalyst sets the stage for a major sector re rating.

Tariff front-running behavior makes the April hard economic data difficult to interpret, but we take the strong reading from Food Services spending as a signal that the US consumer has not yet buckled.

Markets are pricing out the worst trade policy fears, and while tariffs will still dent earnings, the impact looks smaller than initially feared. With sector rotation gaining traction and oversold names rebounding, we are adjusting our portfolio to reflect the rotation thesis.

A weakening economy will apply downward pressure to Treasury yields, but the Trump term premium will keep long-dated yields higher than they would otherwise be. This makes Treasury curve steepeners the most attractive trade in US fixed income.

Utilities remain a long-term structural investment theme thanks to the tailwinds from GenAI, EV, and onshoring.  However, there is little upside left over the tactical investment horizon as all the positives are priced in. We close our overweight and book profits. 

Short-term pain from Trump-related concessions, fiscal tightening amid a US and Mexican slowdown, and rising labor slack will weigh further on Mexican assets. But long-run, policy direction will capitalize on the nearshoring trend and resume the trend of Mexican asset outperformance relative to other emerging markets.