Banks and Financial Stability: A Uniquely Transformational Story
In the last few days, we had three pretty interesting developments related to the banking sector around the globe: EU developments, Basel 3, and an IMF report regarding China’s banks. In the EU, important steps were taken preparing for a Banking Union that will close...
Weekly Market Update
Market Action The U.K. and the E.U. reached an agreement Friday on Brexit terms after six months of tense talks. The deal clears the path for discussions to start next year on the new terms of trade between the U.K. and its biggest commercial partner. A report by the...
Sector Focus: Semiconductors
Over the course of the next several weeks, we will be discussing our views on particular sectors which in our opinion may present some challenges and opportunities. This week we present an overview of the semiconductor sector in the context of their applications....
Weekly Market Update
Market Action November was the best month for Eurozone factories in over 17 years. IHS Markit's final manufacturing PMI for the Eurozone climbed to 60.1 last month from October's 58.5. New orders and backlogs surged and headcount increased at the fastest rate since...
Monthly Barometer’s Forward-Looking Monthly Review: An Interdisciplinary View of our Complex Global Economy
November 2017 The global economic outlook remains sunny, with growth stronger than expected in most parts of the world. This benign state of affairs could be misleading because “averages” don’t mean anything anymore. Aggregate data about income or consumption...
Monetary Trends and 2018 Outlook: Searching for Value
The recent data on M3 (a broader definition of money supply that includes money market funds and large time deposits) show that its growth has been 6.5% (year-on-year) and actually stands at a three-year high (see graph below). How could that be explained and how...
Valuation Fatigue and Credit Outlook: An Initial Assessment of 2018
Given the fundamental trends, we expect global growth to remain healthy in 2018, and therefore we also expect that the credit risk appetite will also remain healthy in 2018. Having said that, we should also state that we expect some tightening in the spreads between...
Weekly Market Update
Market Action Global equities edged slightly lower this week amid an uptick in volatility. Yields on benchmark US 10-year Treasury notes slipped a few basis points to 2.35%, and the price of a barrel of West Texas Intermediate crude oil fell about 3% mid-week before...
At the Corridors of Power: Markets and Geopolitical Developments
The proxy war between the Kingdom of Saudi Arabia (KSA) and Iran is intensifying and our fear is that it may ignite a regional conflict with far-reaching global consequences, especially if Russia and the US take opposite sites. The two Middle Eastern countries have...
Weekly Market Update
Market Action Global equities reached all-time highs at midweek before backing down amid anxiety about delays in US corporate tax cuts. Saudi Arabia’s crackdown on corruption, growing tensions between Iran and Saudi Arabia, and the potential for a Venezuelan debt...
