Electricity is gaining strategic importance in the global energy system. This is not because electricity is a primary energy source, but because the mix of energy sources used to produce it is changing. In particular, the share of oil in electricity generation is falling, replaced by a growing mix of renewables, gas, and nuclear power. This shift not only changes how electricity is produced, but also reshapes the inflationary dynamics historically linked to oil, and consequently its potential impact on interest rates.

Last year, we highlighted the conundrum of European value stocks, particularly banks, Trading near their lowest valuations, yet showing their strongest fundamentals in over two decades. Despite continued outperformance, there remains potential for a valuation catch-up as investors reassess banks' strategic role in the energy transition.

In October 2019, Chile experienced its most serious social upheaval since the end of military rule. A seemingly minor increase in Santiago’s metro fares sparked widespread protests, rapidly escalating into nationwide unrest driven by deep-rooted social and economic inequalities.