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The global economy is facing three interrelated shocks. New Covid-19 cases are once again gaining momentum in Europe and Asia – especially in China – worsening supply chain disruptions. In addition, the war in Ukraine will hinder global growth through many different channels. Lastly, central banks are under significant pressure to quickly normalise policy stances.

Alongside the terrible human cost, the conflict will have an economic impact: more inflation, and less growth.

In reaction to the invasion of Ukraine late last week, instead of military intervention, numerous sanctions were taken in order to isolate Russia from the rest of the world, with the goal of weakening it economically.

The precipitous turn for the worse in the geopolitical situation and its consequences on the financial markets calls for a careful analysis.

This edition delves into the relationship between interest rates, markets and the global economy, and how this may help control inflationary pressure.

At Rothschild & Co, we also look to combine art and science to achieve better results. Investing may seem like it’s all about the numbers, and they are undoubtedly important. But there are also many hard to define, more subjective factors at work.