ECB Liquidity Is Not Fungible For Emerging Markets
BARCLAYS | We believe a further expansion in ECB QE will only have regional, and overall limited , effects on EM. Extending the discussion to the effect of BoJ QE, we come to similar conclusions.
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Target 4 % Unemployment In The US To Achieve 2% Inflation
BARCLAYS | In our view, achieving the FOMC’s target of 2% PCE inflation may require a substantial undershoot on the unemployment rate ( to 4% if not below ). Should the unemployment rate remain near current levels or should inflation expectations drift lower, the FOMC would be unlikely to hit its inflation target over the foreseeable future.
Eurozone Economic Confidence Index Hits Highest Level In Four Years
The Eurozone economic confidence index ticked up 2 percentage points in November from October to 109, according to the European Commission. This figure beat forecasts and is the highest level for the last four years.
Paris Climate Conference: What’s At Stake And Will We Get A Meaningful Deal?
BARCLAYS | The Conference of the Parties (COP-21), the annual meeting of all countries which want to take action for the climate, will take place in Paris from 30 November to 11 December. There are reasons to think the summit can deliver a strong outcome and also reasons to be sceptical.
China is Losing its Southeast Asian Friends
Craig Moran | Territorial spats between China and its Southeast Asian neighbors over Beijing’s infamous “nine-dash line” dotted across the South China Sea have substantially soured the mood of its allies.
EBA Improves Spain Banks Solvency Ratio To 10% Vs 11.8% European Average
The European Banking Authority (EBA) rectified the solvency figures for the Spanish banking sector. The regulatory authority has raised the average “fully-loaded” capital ratio at end-June to 10% from a previous 9%. This compares with the European sector average of 11.8%
Sabine Lautenschläger Enters The Cave Of The Bavarian Lions
James Alexander via Historinhas | In no other country in the euro zone is the public so intensely engaged with each monetary policy measures of the ECB as passionately as in Germany. This applies to the Bavarian public, which is particularly known for distinct opinions and clear announcements.
Chinese Gov’t ‘Causes an Investment Gap with U.S.’
Harry W.S. Lee via Caixin| There is a widening gap between Chinese investments in the U.S. financial sector and those heading the other direction, mainly caused by the Chinese government’s restrictions on market access against foreign investors, an expert from the U.S. research firm Rhodium Group says.
ECB must “not hold anything back” despite Germany’s pressure
The markets are seemingly focusing on next week ECB’s meeting rather than on geopolitical events. Investors expect they will take new measures on expansionary monetary policy. Yesterday, ECB’s vice president Vitor Constancio, insisted again that the central bank will analyse those if needed to reach the inflation target of 2%.
Greece being boxed in by refugee crisis and security concerns
Nick Malkoutzis via Macropolis | The recent attacks in Paris and Prime Minister Alexis Tsipras’s subsequent visit to Turkey in the ensuing days have done much to reveal the environment in which Greece finds itself in relation to the refugee crisis and what potential dangers lie ahead.