The Ghost in the Machine Q3 2020: Pandemic, Agriculture, Sugar, Gold, Brexit, & Asset Price Bubbles.

Welcome to September 2020 edition of the Ghost In The Machine. 

This edition is again unsurprisingly dominated by the Covid-19 pandemic and its impact on markets and the global economy.

As the biannual London Sugar Week approaches, there are in-depth looks at the prospects for demand and supply in the sugar market for the new season. Mental health issues in the Agricultural sector have been something of a taboo subject for decades, but nevertheless a lived reality, but finally there are some initiatives at a national level in a number of countries to create support communities to discuss the many challenges such as safety, work life balance and persistent financial uncertainty.

As the Federal Reserve shifts to Average Inflation Targeting, an obvious question is why a traditional ‘inflation hedge’ such as Gold should be outperforming so many other asset classes, we take a look at some of the other factors behind the rally.

Ultra easy central bank monetary policy in the developed world is clearly here to stay for a number of, if not many years to come, but are the sharp rallies in equity markets really a bubble that is close to bursting, and what is the evidence from models? Brexit related deadlines are fast approaching, and this will have consequences for the UK and EU financial sectors, what are the key issues, above all in operational terms from a regulatory / legal perspective, and will cool heads prevail?

The EU has put environmental and climate change related issues front and centre of its recovery plans, above all establishing the EU as a world leader in hydrogen technology, we take a look at its strategy outline, and offer some introductory background on the various forms of hydrogen energy.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

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