Wealth Adviser Newsletter 11.03.22

Russia-Ukraine – implications for investors

Harriet O’Brien reported on a round of comments from wealth managers and analysts on the likely effect on markets of the Russian invasion of Ukraine. At J Stern, Christopher Rossbach comments that the greatest economic pressure to come out of the situation is likely to be a broader inflationary pressure which will include energy, materials and agri-commodities.
"The question will be how central banks respond to inflation that is up to 2 per cent higher than previous estimates," he says. "Will the Fed, the ECB and Bank of England lift rates further and faster than current expectations, raising the risk of choking the economic recovery? Or do they fear a potential recession more than inflation and adopt a more measured approach?"
Meanwhile, as Russian assets outside of Russia are increasingly impounded, Olivia Dakeyne, a manager in the Themis Think Tank reminds us that while many firms see customer due diligence (CDD) as a burdensome regulatory requirement, it is vital as so much more than a compliance exercise.
Dakeyne writes that it really is the first line of defence against money laundering and terrorist financing. "…and can have a truly tangible effect on preventing crimes that globally affect individuals, societies and the environment, including modern slavery and human trafficking, the illegal wildlife trade, organised criminal rings and drugs crimes," she says.
Beverly Chandler, managing editor, Wealth Adviser

Copyright © 2022 All Rights Reserved

About | Disclaimer