J.L.M. Campuzano | The central banks really need some new arguments for extending their current expansionary monetary policy. As well as for not withdrawing some of the existing measures. The alternative is to get carried away. And that means in some cases repeating what has been done up to now: responding to market demands with new expansionary moves, confusing on too many occasions a desire for financial stability with rising financial asset prices.Read More
Citi Research | We initiate coverage of EMEA FinTech with a focus on payments. The payments industry is undergoing profound change, and the way consumers pay for services and goods is changing at the fastest rate since the proliferation of credit cards.
BofAML | BoE’s decision to hold rates looks like a policy mistake. But one they can rectify quickly, at their August 4 meeting. We expect a 25bp rate cut, credit easing and potentially a QE salvo. We expect slightly less than we thought before yesterday’s meeting. A properly combined fiscal and monetary push seems unlikely: a fiscal stimulus will take longer to design, and may be limited given budget constraints.
George Soros via Caixin | Europe’s leaders must seize the moment to push forward reforms that can reshape the EU into an organization that people want to be a part of. Until the British public voted to leave the European Union, the refugee crisis was the greatest problem Europe faced. Indeed, that crisis played a critical role in bringing about the greater calamity of Brexit.Read More
AXA IM | Companies have re-leveraged their balance sheets since the global financial crisis (GFC), driven by low borrowing costs. Although heightened, corporate leverage is not currently excessive in developed markets, although we see signs of concern in emerging markets. In this note we assess whether we should be concerned about corporate leverage at current levels.Read More