Asia Economics Update China's leaders play to domestic audiences too The future of the dollar will be in the spotlight at high-level meetings between China and the US today and tomorrow. China is understandably concerned about the value of its stock of reserve assets... 27th July 2009 · 1 min read
Europe Economics Update Strong euro to add to near-term deflationary pressures The recent appreciation of the euro is yet to have had an impact on euro-zone import prices, due to the normal lags between these two variables. But it soon will. What’s more, with spare capacity... 21st July 2009 · 1 min read
UK Markets Chart Pack Markets shrug off delay to expansion of QE (Jul 09) The gilt market reacted with some concern to the MPC’s decision this month not to announce an immediate increase in the funds it plans to allocate to quantitative easing. However, we think that... 15th July 2009 · 1 min read
Asia Economics Update Hot capital returns to China, raising inflation risks further The revival of confidence in China’s prospects appears to be drawing large amounts of speculative capital back into the economy, swelling the money supply and further raising inflation risks. Much of... 15th July 2009 · 1 min read
Global Economics Focus Could SDRs supplant the dollar? IMF Special Drawing Rights will not emerge as a reserve asset to challenge the dollar, but they could be used to reduce the risks of a destabilising flight by reserve holders from the US currency. 14th July 2009 · 33 mins read
Global Economics Update Central banks not losing faith in the dollar The People’s Bank of China is again calling for an alternative to the dollar as the world’s major reserve currency. Words are cheap. There is strong evidence that central bank purchases of dollars... 26th June 2009 · 1 min read
UK Markets Chart Pack Risk appetite continues to grow (Jun 09) Growth in risk appetite is continuing to have a beneficial impact on credit markets. Corporate bond spreads have tightened further over the past month. The global default rate for speculative grade... 12th June 2009 · 1 min read
UK Markets Outlook Markets take green shoots at face value Financial markets appear to have taken the recent signs that the downturn in the UK economy is past its absolute worst at face value, with equities, bond yields and the sterling exchange rate all... 9th June 2009 · 1 min read
UK Economics Focus Is the lower pound already helping? On the face of it, the plummeting level of UK exports suggests that the sharp drop in the sterling exchange rate over the last year or two has done nothing to cushion the UK’s external sector from the... 27th May 2009 · 1 min read
UK Markets Chart Pack Corporate bond spreads grind tighter (May 09) According to the Investment Management Association, the credit crunch has resulted in the sterling corporate bond market becoming characterised by wide spreads, a lack – or even absence of – market... 15th May 2009 · 1 min read
UK Economics Focus Can the UK make the most of the lower pound? Concerns have been expressed that the UK’s export-dependent sectors, most notably manufacturing, no longer have the key ingredients necessary to make the most of the boost to their competitiveness... 12th May 2009 · 1 min read
UK Economics Update More upside for the pound, at least against the euro While some of sterling’s recent strengthening may reflect short-term factors which could be quickly reversed, there are more fundamental reasons to expect the pound to rise, at least against the euro. 16th April 2009 · 1 min read
UK Markets Chart Pack Outlook still favourable for gilts (Apr 09) We continue to expect 10 year gilt yields to drop to around 2.5% and to remain at those sorts of levels for a prolonged period. While breakeven inflation rates have crept a little higher in response... 15th April 2009 · 1 min read
Global Economics Update No dislodging the dollar The suggestion by China’s central bank governor that the dollar be replaced as the world’s reserve currency may have been prompted by concern about the impact of the Fed’s quantitative easing on the... 24th March 2009 · 1 min read
UK Markets Chart Pack Quantitative easing makes its mark (Mar 09) Our view that the combination of very low interest rates, deflationary pressures and large-scale official purchases of bonds would push gilt yields sharply lower has been strongly borne out over... 24th March 2009 · 1 min read
