Markets

Dove

Fed to stay dovish in new rates regime

The Corner | June 17, 2015 | The Federal Open Market Committee’s policy statement, due to be released today at 1800 GMT, is widely expected to signal a first rates’ hike in September. For the first time in eight years the outcome of the meeting is not constrained by the “forward guidance” commitment. Is the US economy healthy enough?



Profit margins in the Eurozone

EZ profit margins to outperform the US

LONDON | June 16, 2015 | BNP Paribas | The pricing power of corporates is still low at the global level as sizeable excess capacity remains. Nevertheless, it is not all bad for companies. 



Easy money

Rates do matter

MADRID | June 14, 2015 | By JP Marín ArreseWe take for granted that close to zero rates remain the driving force for delivering growth. The massive liquidity pumped in by Central Banks in developed countries has led to this widespread belief on the merits of cheap money. But such manna brings with it a number of drawbacks. 




Spain's economy minister

The Eurogroup presidency: A battle Spain cannot afford to lose

MADRID | June 11, 2015 | By Francisco López | The appointment of Spanish Economy Minister Luis de Guindos as president of the Eurogroup was a sure bet until the Dutch finance minister and current Eurogroup chief said he will stand for the post again. Possibly affected by this bad news, Mr De Guindos made a very unfortunate intervention about the Spanish banking sector’s restructuring.


European rates

European rates: Bunds – where now?

LONDON | June 11, 2015 | UBS | We believe that a bear trend has started in European bonds and we continue to forecast 2% for 10-year Bund yields for the end of next year.


Stable front-end Eonia rates (bp)

Resilient Eonia fixing, fragile long Eonia rates

LONDON | June 9, 2015 | By Giuseppe Maraffino (Barclays) | Eonia and Euribor fixings (as well as OIS rates up to 1 year) have been immune to the new round of high volatility. This is because they are more sensitive to liquidity conditions and the current abundant liquidity surplus at about EUR300bn has been an important protection.