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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 art of negotiating (monetary) curves

“After a long straight, the driver downshifts and brakes slightly before going into a curve. When the curve proves to be tighter than expected, and with the car still cruising at high speeds, the driver hits the brakes harder. The wheels lock and the car skids out of control.” This metaphor seems to fit the challenges currently facing the US Federal Reserve

 

Eurozone: how good can it get?

The eurozone is doing better. In fourth-quarter 2016, there was a real acceleration in both the manufacturing and services sectors. And according to European Commission data, both household confidence and business sentiment have improved strongly since mid-2016.

 

Changing phases

Fiscal stimulus to an American economy at full employment is likely to trigger a tightening of financial and monetary conditions which in turn could affect growth prospects and investors’ appetite for risk. The route therefore looks well defined. It reflects a monetary policy which will gradually become more restrictive and will end up holding down growth.

 

The hopes and uncertainty of a new era

A festive spirit has swept Wall Street as investors anticipate tax cuts for both households and companies, and to a lesser extent, greater spending, notably on infrastructure. In contrast, the bond market has slumped.

 

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.

 

Japan – Monetary policy: let’s give it another try

Central bank credibility is a necessary condition for monetary policy to be successful in achieving its objectives. It refers to the authority (independence) of the central bank to act when circumstances require and to its willingness and ability to take the appropriate measures.

 

The thin line between complacency and clairvoyance

Blind, complacent, cool-headed, driven by moral hazard, clairvoyant? Or should we follow the example of the Bank for International Settlements and call it “dissonant”? Which term best describes this summer’s market behaviour?

 

New monetary season

For the financial markets, summer’s end is often the occasion for deep-felt upheavals. This summer, investors left on vacation filled with trepidation about the economic impact of Brexit, about robust job creations in the US and how they might change monetary policy prospects, and about the outcome of European banks’ stress tests.

 
 
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