Strategy update: Markets, interest rates
& mobility in transition
Opportunities and challenges in May 2023 from Eriya’s perspective
Stock markets & consumption
In April, many companies presented impressive quarterly figures: on average, sales were up 2.2% and profits were up 6.5% above expectations. Non-essential consumer goods performed particularly well. Nevertheless, consumer sentiment in the US was subdued, with the Consumer Confidence Index hitting a nine-month low. Investors favored more defensive markets such as Switzerland and increasingly focused on value stocks.
Inflation & Interest Rates
Despite the decline, inflation remains stubborn, especially in the service sector. At 2.9%, Switzerland is comparatively low, while core inflation in the eurozone has reached a record high of 5.7%. The markets do not expect any interest rate cuts in the course of the year – striking a balance between inflation, growth, and low interest rates remains challenging.
EU & e-mobility
The EU has decided to only allow climate-friendly new cars on the road from 2035 onwards. However, battery production has a significant impact on the environment and resources, especially in countries such as Chile and the Congo. While Europe is creating new dependencies, raw materials companies are profiting. A real change can only be achieved through more shared use, smaller cars, and longer ownership periods.
