Category : Videos

Good time ahead for corporate investment?

Good time ahead for corporate investment? Increase in consensus earnings growth forecasts for the next 12 months points in that direction.

 

The IMF brings good news and…other news

The new World Economic Outlook of the IMF paints a rather positive short term outlook but medium term risks have risen. A more coordinated policy approach is needed to address these challenges. Find more in the EcoTV Week video.

 
Eurozone

Eurozone: a real recovery

Surprisingly strong Q1 shows the Eurozone recovery is for real but inflation remains a key policy challenge.

 

The key known unknowns for 2016

Of the many unknowns we face going into 2016, two are of particular importance: will China achieve a soft landing and how will the US economy react to the Federal Reserve rate hikes? The answer to these questions will determine the evolution of global growth, commodity prices and financial markets next year.                                             http://economic-research.bnpparibas.com/ecotvweek/en-US/known-unknowns-2016-12/11/2015,c24888

 

What explains the negative correlation between equity markets and the euro?

The strong decline of equity markets in China has caused a decline of the Euro Stoxx index but also a strengthening of the euro against the US dollar. Whereas the long term relationship between European equities and the euro is positive, this year the correlation has turned negative. This can be explained by the use of the euro as a funding currency for carry trades. If risk rises as witnessed by a decline of equity markets, risk appetite goes down and speculative currency positions are scaled back. This causes the euro to rise.

 

Market volatility made in China: uncertainty dominates the direct economic impact

The bursting of the Chinese equity bubble and the surprise devaluation of the yuan have shaken investor confidence across the globe. More than the direct economic impact, it is the jump in uncertainty which is reflected in the decline of global equity markets. On the back of interest rate cuts and a lowering of the reserve requirements of banks, more policy measures are to be expected in China although some additional weakening of the currency cannot be excluded.

 
 
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