Donald Trump is unstoppable in his advance towards protectionism
US president Donald Trump is continuing along the path towards protectionism, positioning himself to take advantage of more beneficial trade conditions for the leading global economy.
US
“Underlying US Inflation Has Never Really Risen Above 2% Since The Mid-1990s”
“If we analyse the data from the last 25 years, there is very little inflation. Underlying inflation in the US has never really fallen below 1% which means that the secular dynamism in the labour market is reducing inflation, via technology and globalisation,” explains Bruce Kasman, chief economist at JP Morgan.
Spain is better off without a new budget
Many argue that Spain lacks a proper government, with the one in office proving unable to secure parliamentary backing for the 2018 general budget.
Equities vs bonds: buy real returns
One factor that could alter the judgement on current stock market prices are long-term interest rates, indicators of the alternative no-risk returns to the stockmarket, which are not fixed directly by the central banks but by the market itself.
US, Australia, Japan And India Discuss ‘Belt and Road’ Alternative
Coco Feng via Caixin | The U.S., Australia, India and Japan are discussing formation of a joint regional infrastructure-building initiative, attempting to counter similar Beijing-led efforts aimed at boosting developing market economies, according to an Australian media report.
US Means Over 50% Of Global Market Cap, But Not 50% Of The Opportunities
The collapse in the “greed index”, the exchange traded note XIV that was an inverse of the VIX, was behind the speed and magnitude of the drawdown in equities over last weeks, but was simply amplifying an existing fragility that has grown out of the post GFC obsession with low volatility. This is just “market mechanics”, as explained by Mark Tinker Chief Economist at AXA IM Framlington Equities Asia in one of his last notes.
Iberdrola Posts Net Profit Of €2.804 Bn (+3,7%); Positive Impact Of €1.284 Bn From US Tax Reform
Iberdrola reported net profit of 2.804 billion euros in 2017, up 3.7% from a year earlier. Consolidated EBITDA fell by 7.8% to 7.318 billion euros last year. The results were impacted by the US tax reform and difficult operating conditions in Spain.
Savings, Investment, Interest Rates: The Increasing Gap Between The Euro And The US
After twenty years of similarity between 10-year rates in the US and Germany, for the last six years there has been a growing decoupling of the US rate, reaching a spread of 2%. So what are the macroeconomic differences justifying such behaviour? Germany’s huge savings play a big part.
Are We Going To Be Talking About Stagflation Once Again?
After US inflation beat estimates in January, it’s likely the market will end up putting even more emphasis on the possibility of seeing inflation rates higher-than-expected months ago, or even stagflation. And, unfortunately, this will continue to spark potential over-reactions which would give way to strong, quick movements.
Welcome Mr Powell: Monetary Normalisation Is Not Going To Be A Bed Of Roses
The welcome the financial markets have given the new Fed chairman (Jerome Powell) shows that the end of the monetary normalisation process in the US is not going to be a bed of roses, despite the fact his predecessor (Yellen) left with a good part of the dirty work already well underway.