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fiscal policy

consumption recovery 1

World economy 29th June 2020

Consumption: Support Point For Recovery

José Ramón Díez Guijarro (Bankia Estudios ) | The first weeks of the opening of the economies are serving to gauge the response of consumption, a key variable in determining the profile and intensity of the recovery. In the US, the fiscal programmes for aid to families injected more than 300 billion dollars into disposable income in the second quarter. In Europe, instead of using direct aid as in the US, they have preferred to activate temporary employment suspension programmes (ERTE in Spain, kurzabeit in Germany, etc).

Global Economy

World economy 25th January 2020

After Growing 3.2% In 2019, The Global Economy Will Expand 3.2% In 2020 And 3.3% In 2021

These growth forecasts are  dependent upon keeping geopolitical tensions in check, in addition to other risks threatening the world economy. Specifically, our scenario assumes that recent tensions between the US, Iran, and Iraq will have no permanent negative impact on the global environment. In particular, oil prices are expected to stabilize at about $61 per barrel over the next two years, below the average value recorded in 2019 ($ 64) or the current price ($ 68).

The ECB thinks that the European financial system could withstand even lower rates

European economy 5th December 2019

Popularity Of Fiscal Policy Rises As New European Leadership Shows Up

David Kohl (Julius Baer) | The European political leadership is in transition, with Ursula von der Leyen starting as President of the European Commission and Christine Lagarde as President of the European Central Bank and the Social Democrats in Germany voting for a new leadership. The common denominator of the most recent leadership changes in Europe is more openness towards an expansionary fiscal policy at the expense of austerity, which had been the mantra of the past ten years.

euro coin

In Europe 12th November 2019

Eurozone’s macro adjustment – (mostly) Checked

The best indicator of activity in the Eurozone is not the PMIs, but the Sentix Index, the investor sentiment meter: although it is true that it is still at low levels, it just experience the highest rise since August 2009.

french yellow vest

Spanish economy, World economy 8th November 2019

Taxes, the unpopular conundrum

Fernando G. Urbaneja | In France, president Macron, making good arguments, although not explaining them enough, wanted to raise taxes on fuel and millions of citizens forced him to back down. In Ecuador, President Lenin Moreno has gone through such a trance for the same reason. In Chile, President Piñera is on the verge of eviction for the attempt to raise urban transport rates.

bolsa madridTC

Markets 4th May 2019

Western equities rose 4% in April

Link Securities | … After these rises both indices and many shares are somewhat over bought, which is why no-one should be surprised that they pit stop, even more so when considering how much they have risen since the beginning of the year.