Insights

While Syriza has won the Greek election, a Grexit is not the most likely outcome. Even if Greece were to exit the Euro, peripheral Europe is now in far better shape than in 2010-12 and Eurozone defence mechanisms are stronger. While the Euro likely has more downside, Eurozone shares are attractive reflecting relatively cheap valuations, the likelihood of stronger growth ahead and very easy ECB monetary conditions.

At an investment meeting in December, one of our CIOs asked, "What's left in the tank for equities?" We believe corporate earnings growth will lead to another year of positive returns for the global equity universe. In our view, lower oil prices could be the fill-up that drives equities further.

Fixed interest securities are priced using a standard readily available formula. The formula can be used to assess interest rate scenarios. If you buy a bond for $100 paying a fixed coupon of 3.5% p.a. with a promise to repay $100 in 5 years what happens to the price of $100 if secondary market rates rise by 1% p.a. or fall by 1% p.a. on the day of purchase? What happens if we change the maturity to 1 year or 20 years?

The ECB joining the currency wars will see the dangerous side-effects of central banks' monetary policy experiments continue to build and has merely pushed out the day of reckoning.

If Syriza's more radical elements feel betrayed by leader Alexis Tsipras' watered-down policies, Greece could be further destabilised -- with disastrous consequences.

Our every move can now be monitored, recorded and monetised. That means big opportunities for companies but also potentially big privacy issues.

The US president used last week's State of the Union to warn the new Republican Congress he was not for retreating on his climate policy advances, vowing to veto any GOP obstruction.

Even if optimistic predictions of an oil price recovery prove correct, the industry will suffer considerable damage before then.

The factors that allowed the Chinese economy to grow so fast could soon exacerbate the sharpness of the slowdown.

The RBA will be worried about its credibility should it lower rates without first signalling its intentions, but it should be more concerned about the risk posed by continued inaction.

Billions of dollars have been already been sunk in to electricity network infrastructure in Australia to cope with peak demand -- and the costs will continue to be passed on.

As expected, Greece's Syriza party swept to victory in a country that's sick and tired of six years of austerity, cuts and unemployment and is desperate for a change. Slightly less expected, the markets have broadly taken this apparent lurch to the radical left in their stride.

The upcoming inflation figures will give us a much clearer picture on how plunging energy prices could influence the RBA's thinking.

In local news, quarterly inflation data from the ABS will take the spotlight, while policymakers around the world will be watching the Federal Reserve's rates decision.

In this week's essential reading guide, Kohler looks at the state of central banking, Bartholomeusz questions the merits of the ECB's QE program and Pickering tackles inequality.

New oil market realities in the Middle East will force energy-exporting countries to reassess their spending plans and implement big subsidy, fiscal and labour market reforms.