Euro area inflation: Target looks closer, but it’s still far off
Barclays continues to expect headline HICP inflation to average +0.1% this year and +1.0% next, and core HICP inflation to edge up to 1.1% next year from +0.8% in 2015.
News
The Swiss representative and Swiss paying agent
The regulations on the distribution of funds in Switzerland have changed. Fund providers need to assess their existing or planned distribution activities in Switzerland, and decide if they need to appoint a Swiss representative and a Swiss paying agent. OpenFunds briefly summarizes the requirement for a Swiss representative and a paying agent and terms that apply to the requirement and explains the respective roles.
US equity upside: limited by the Yellen call
We see limited upside to equities in 2016. Our US Portfolio Strategy team has a 2016 price target of 2,100 for the S&P 500, suggesting a very modest return of 5% (from current levels). Their framework assumes that 1) earnings per share will rise 10.1%, driven partly by ‘base effects’ in the energy sector and partly by improvements in global growth more generally, but that 2) the price-earnings multiple will fall approximately 5% (to 16.3x from 17.1x), as typically happens during rate-hike cycles.