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Yields on 10-year French government bonds have reached 5% and a spread over German Bunds unseen since 2012. French banks are paying the price, especially on their AT1s.

Global equities fell sharply as the Democratic midterm election sweep raised fears that regulation would slow the AI data centre build-out and hit technology and semiconductors hardest. Bond yields fell on lower oil prices and the equity sell-off, even as the Bank of England raised its interest rates to 4% and signalled that more hikes could follow. The USD gained ground on safe-haven demand and strong US payrolls, while gold also rose.

Since 2022, sustainable finance has been experiencing a slowdown. Rising rates, geopolitical tensions and economic uncertainty have led to investors reviewing their ambitions. Despite this, sustainable finance has not disappeared; it has been normalised.

For external asset managers (EAMs), succession planning is a strategic priority. Demographic changes, rising client expectations, increasing regulatory complexity, and the need to attract younger talent are all reshaping the sector. In this piece, Union Bancaire Privée’s (UBP) Nadège Lesueur-Pène, Head of Wealth Management Developing Markets & Europe, and Anja Karcher, Head of EAMs Basel, provide some guidance on how to achieve a smooth handover.

Major central banks mostly held their interest rates steady last week, with the US Federal Reserve (Fed) and the European Central Bank (ECB) preferring to wait and see what happens. Global equities edged lower as the technology sell-off extended into a third week, with investors focussing on the gap between artificial intelligence (AI) spending and free cash flow. Bonds gained on lower yields, while gold traded lower on modest positioning adjustments and its sensitivity to equity markets.