D. Salvatore, Distinguished Professor of Economics and Director of the Global Economic Policy Center at Fordham University (New York), will examine the prospects and policies for United States, Europe, Japan, China , India, Brazil and Russia to overcome recession and return to rapid growth.
During previous days, the observed currencies managed to go through some notable ups and downs.
Relief rally: too much too soon? The equity rebound of the past month is a classic “relief rally” where investors are relieved conditions are not as bad as they previously […]
The European Central Bank (ECB) have very much taken the ‘kitchen sink’ approach, surprising market expectations in a variety of ways, not least an expansion of the asset purchase programme to include corporate bonds and opening the door to paying banks to borrow via the longer-term refinancing operations (LTROs). They hope that the measures announced will ease financial conditions and stimulate new credit creation, leading to stronger growth and a return of inflation to target.
We expect the ECB to announce another menu of monetary policy easing including a 10bp deposit rate cut together with an introduction of a two-tier deposit rate system and a front-loading of the QE purchases.
It will not be now and it will not be strong but the oil price recovery could start during 2016. Frank Nicolas, head of investment and client solutions at Natixis AM thinks that “even if oil falls a bit further there is light at the end of the tunnel”.
According to the latest ICMA repo survey, overall activity in the EU repo market declined slightly in December 2015. However, we think it is premature to consider this a sign of bottoming out after the last five-year downward trend. Regulation and abundant liquidity in a context of negative rates are likely to favour a further gradual contraction.
Europe is facing a confluence of serious political challenges that put at risk the region’s continued integration as envisaged in the various treaties that govern the EU.
