A narrow vote in favor of opening a path to EU membership in the tiny economy of Moldova highlights Russia’s influence that remains strong in the region. The former Soviet republic sought to break the Kremlin’s decade’s-long grip, but the tight margin of just 13,000 in the vote shows the challenges facing President Maia Sandu in integrating the country into the West. With a population of just 2.6 million, Moldova is one of the smallest economies in Europe. But wedged between EU member Romania and war-ravaged Ukraine, it has outsized importance when it comes to the continent’s security and countering the threat of Vladimir Putin’s Russia. Sandu secured a first-round victory in the nation’s presidential election on Sunday but will go up against a pro-Russian candidate in a Nov. 3 runoff. She denounced what she called Russian meddling in the contest. The EU is the country’s biggest investor and has helped restore energy supplies cut off by the Kremlin. But Russia’s hold and its legacy of ties are still a challenge. The question is whether the allure of accession into the world’s richest economic club can counter Moscow’s influence and the heightened security threat since the invasion of Ukraine. It is a challenge and a question being posed also in other parts of the former Soviet sphere, such as in Georgia.
US stocks are unlikely to sustain their stellar performance of the past decade as investors turn to other assets including bonds for better returns, Goldman Sachs strategists said. The S&P 500 Index is expected to post an annualized nominal total return of just 3% over the next 10 years, according to the analysis. That compares with 13% in the last decade and a long-term average of 11%. Investors should be prepared for equity returns over the next 10 years that are “towards the lower end of their typical performance distribution,” the bank’s strategists wrote in a note. The S&P 500 is on track to outperform the rest of the world in eight of the last 10 years, according to data compiled by Bloomberg. However, this year’s 23% bounce has been concentrated in a handful of the biggest technology stocks.