Global Markets Update Will capital flows put further pressure on the euro? As investors’ confidence in the euro-zone has waned, overall inflows of portfolio capital from abroad have slowed. We suspect this trend may continue, undermining the euro further in the process. 7th January 2015 · 1 min read
Europe Economics Update Euro weakness set to be sustained Recent strong downward pressure on the euro exchange rate might ease in the very near term. But further ahead, poor euro-zone growth, the implementation of quantitative easing and fears for the region... 6th January 2015 · 1 min read
Europe Economics Update Grexit dangers darken euro-zone outlook There is growing evidence that, even before the latest drop in oil prices, the US shale oil revolution had started to weigh on oil producers in Latin America. Oil exports to the US from three of the... 5th January 2015 · 1 min read
Asia Chart Pack Sri Lanka faces tight election contest Sri Lanka’s presidential election, scheduled for 8 th January, is shaping up to be much closer than expected, with the current president, Mahinda Rajapaksa, now facing a genuine challenge from... 24th December 2014 · 1 min read
UK Markets Chart Pack Yields on Gilts and Treasuries continue to decouple Over the last two months, yields on UK and US government bonds have decoupled, with 10-year yields in the UK now about 30bp lower than those across the Atlantic. Whereas strong US economic data and... 23rd December 2014 · 1 min read
EM Valuations Monitor Oil price collapse lowers Russian ruble’s fair value Last week, the Russian finance ministry claimed that the ruble was “extremely undervalued”. Admittedly, it made the claim when the currency was around 70 to the dollar, and the exchange rate has since... 23rd December 2014 · 1 min read
Global Economics Update A selection of key calls for 2015 and beyond We expect 2015 to be another year of large divergences in the performances of the advanced economies, with the US and the UK leading the pack and the euro-zone and Japan continuing to struggle. But... 23rd December 2014 · 1 min read
Global Markets Update Oil price slide prompts withdrawal from emerging markets Investors’ retreat from emerging markets over the past month has reflected growing concerns about the implications of the collapse in the price of oil. Admittedly, most countries (and the world as a... 23rd December 2014 · 1 min read
Emerging Europe Chart Pack Russia spirals into crisis The Russian ruble has stabilised in recent days, but only after the central bank introduced a raft of measures to limit ruble liquidity – including a massive hike in interest rates – and, perhaps more... 22nd December 2014 · 1 min read
China Economics Update Renminbi reverses course A month after benchmark interest rates were cut in China, market interest rates have risen, putting the People’s Bank under pressure to do more to reduce financing costs. Meanwhile, the equity markets... 22nd December 2014 · 1 min read
Global Economics Update What role for exchange rate ceilings? The Swiss National Bank introduced a negative deposit rate yesterday, but its main tool to combat the threat of deflation is a ceiling for the Swiss franc. Given the continued threat of deflation and... 19th December 2014 · 1 min read
Global Markets Focus How will the outlook for monetary policy affect the markets? A tighter monetary policy of the Federal Reserve will potentially be the most important factor affecting the global financial markets next year. In this Focus, we consider the reactions we can expect... 19th December 2014 · 1 min read
Asia Economics Weekly What to expect in Asia in 2015 In this Weekly we outline our key calls for the region in 2015. We expect Emerging Asia to be a bright spot in the global economy, with growth set to accelerate in most economies. Falling commodity... 19th December 2014 · 1 min read
Emerging Europe Economics Update The Russia crisis: one chart to watch The Russian ruble has rallied over the past 24 hours, but there are growing signs that the crisis is spreading to the banking sector. In particular, interbank interest rates have jumped to over 27%... 19th December 2014 · 1 min read
China Chart Pack Rate surge puts PBOC in a bind Interbank interest rates this week recorded their biggest increase in several months. The rate increase is much smaller than at this time last year but a key difference is that the People’s Bank cut... 19th December 2014 · 1 min read
Japan Economics Weekly What should we expect in 2015? Wage growth is set to remain sluggish next year and, with households also likely to be trying to rebuild their savings, we expect consumer spending to be subdued. In turn, this suggests that GDP... 19th December 2014 · 1 min read
