GLOBAL - A recovery in equity values is still far from certain despite some recent global rallies, Pictet Asset Management warns.
Head of asset allocation Mike Collins said events over the next two months would determine whether the global economy “sinks or swims in the first half of 2003”.
He added: “Conflicting forces are at work in the global economy – balance sheet restructuring is exerting a downward pressure on demand.
“The recent rally in equities has sparked an improvement in confidence but we are unlikely to see a sustainable rally until economic data dispels fears of a more protracted period of economic weakness”.
Collins said he saw “a glimmer of hope for Europe” due to lower share prices which meant improved valuations.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers