Yves Bonzon (Julius Baer) | Back in June, we argued that financial repression, which consists of transferring wealth from creditors to debtors, can take several forms and is not confined to negative yields. At that time, the city of Berlin launched an initiative to freeze rents for five years from 1 January 2020. The governing coalition now struck a deal that looks fairly similar to the initial draft.
Spanish Banking Association | According to the ECB, Eurozone deposits grew at 5% in March, the fastest recent rate. The growth rates for household and company deposits coincide at 5.7%. The deposits of public authorities grew above 11% in March.
Why are interest rates so low? We have explained that the reason is the weak credit situation for financing investment.
By Miriam L. Campanella via Caixin | The supply of U.S. dollars in the global economy is set to shrink, and the yuan could fill the void if Chinese leaders and international monetary institutions are prepared to act
Iris Mir | Tight control of capital accounts has pushed China to a financial deadlock. Chinese savers are looking to new online investment platforms amid a lack of substantial wealth management options. Last year China’s Internet payment platform launched the online investment platform Yu’e Bao to offer its users the possibility of investing the idle money on their Alipay accounts and getting much higher benefits than any traditional bank. More than 43.03 million people already enjoy its advantageous financial products. The opportunities of this business model are huge and many other Chinese internet giants are following suit.