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africa top economies

World economy 7th March 2020

Leveraging European Capital To Build Stronger African Economies

European Views | Two months into the new decade, one of the defining trends of development finance in the 2010s is showing no signs of slowing down. “Eurobonds” – bonds issued in foreign currencies, not necessarily in Euros but often on the London Stock Exchange (LSE) and Irish Stock Exchange (ISE)  – have become a prime tool for sub-Saharan African (SSA) governments looking to raise capital for infrastructure projects or servicing debts.

Medicare

World economy 6th March 2020

The (possibly lost) Coronavirus Opportunity

Pablo Pardo (Washington) | Now, Covid-19 could be a great opportunity for the United States and, also, for the world economy. With interest rates nearing zero, this could be a good opportunity to use fiscal policy to revive the economy… Also, at least in the United States, this could be an opportunity to undertake a reform of which absolutely nobody talks, but which makes this country have, by far, the most expensive, dysfunctional and inefficient social protection system in the industrialized world. Take health care, for example:

global growth

World economy 5th March 2020

Will a Struggling Global Economy Survive the Coronavirus?

Atul Singh | The coronavirus outbreak is putting a clearly unsustainable global economy to the test.Coronavirus is China’s Chernobyl. It is finishing what Trump’s trade wars started. Global supply chains will change. Trade will slowdown. The decoupling of China and the US will continue. Even as these tectonic changes unfold, a global recession has become more probable.

OPEC post mortem

World economy 4th March 2020

Pre-OPEC Meeting : Will The Organization Restore Brent Backwardation?

Nitesh Shah (Wisdom Tree) | With the coronavirus spreading around the world, the market is understandably scared that demand for crude oil will fall hard this year. Brent oil prices have fallen from a peak of US$68/barrel in the first week of January to US$56/barrel currently (24/02/2020). We believe that the backwardation in the Brent oil futures curve is generated by the fact that OPEC is ready to intervene.

Jay Powell

World economy 3rd March 2020

Emergency Move At The Fed: Cuts Rates By Half Point As Coronavirus Spreads

Ranko Berich (Monex Europe) | Jay Powell and the Fed have taken the warning financial markets have given about coronavirus over the past weeks to heart and brought out the big guns with a 50bp intra-meeting rate cut. This is a tool that has not been used since 2008, and comes after a serious worsening in the global macroeconomic outlook due to the Covid-19 outbreak shattering previous optimistic assumptions that it would be mostly contained within Q1.

central banks1

World economy 2nd March 2020

G7, Central Banks To The Rescue Of Coronavirus Damage On The Economy

Expectations for coordinated action from the main central banks is growing. The Fed’s messages will be particularly decisive as “it is the only with real capacity to influence the market and the determination to take strong action”, explain experts at Bankinter. The upcoming central banks’ planned meetings are: March 12 (ECB), March 18, the Federal Reserve (FOMC Minutes), March 19, the Bank of Japan and March 26, The Bank of England.  

Fiat Money

World economy 29th February 2020

Fiat Money Will Most Likely Continue To Lose Its Purchasing Power Over Time

Degussa | Wherever you look: Prices for consumer goods, real estate, stocks and bonds are on the rise. That means that the purchasing power of money is on the decline. For if, say, stock prices go up, your money unit can buy fewer stocks. What it also means is: While people holding assets, whose prices increase, become “richer”, people holding money get “poorer”

Is it the Fed that has changed... or the world around it?

Markets, World economy 27th February 2020

Treasuries Yields Plunged, Hiting Historic Lows. VIX Soared To 32

BBVA Research | Covi-19 jolts equities and sovereign yields again as mounting coronavirus cases outside China dashed hopes that the outbreak had been contained. U.S. Treasury 10Yyield hit historic lows, dropping below 1.30%. Elsewhere, the WHO stated that the covid-19 has the potential to become a pandemic, while the U.S. warned not to travel to Spain to avoid potential dangers.