Market Flash All eyes were on central banks. As expected, the Fed left its rates unchanged. It even said they would not move until inflation rose above 2% and stayed there for some time, a situation it does not expect
Key points The divergence between a decisive Fed and a more hesitant ECB is an interesting debate but it hides the fact that on both sides of the Atlantic monetary policy through its traditional transmission channels is facing diminishing returns.
The Federal Reserve today announced an important change in its framework for conducting monetary policy in order to achieve its “statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates.” One of the main
The Federal Reserve today announced an important change in its framework for conducting monetary policy in order to achieve its “statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates.” One of the main
The US Stocks drifted higher through much of last week, although the catalysts for the move were perhaps harder to identify than usual, and trading was subdued relative to recent months. The week’s busy economic calendar appeared to play some
Aggressive interest rate cuts, liquidity provisions and quantitative easing worked well. Buying facilities rather serve as a backstop. Based on a diminishing marginal effect from Large Scale Asset Purchases (LSAP), the Fed might do more for longer to support
In many things 90% is just fine; for an economy it is miserable Bankruptcies and the fear of a second wave Life will be hard—at least until a vaccine or a treatment is found
How interest rates could remain at emergency levels for a sustained period. KEY INSIGHTS Central banks are likely to remain cautious for some time, keeping the short end of developed government bond curves anchored. Longer-dated government bonds could face greater volatility
The Covid-19 pandemic triggered a wave of support to keeps banks functioning efficiently and economies ticking over through lockdowns. We look at what action has been taken and its impact on the health of the banking sector.
Central Banks: interest rates near zero The Fed kept its interest rates unchanged. The ECB kept its interest rates unchanged. No movement on BoJ interest rates since 2016.
Key points: Bond markets have stabilized, but the economic recovery will be measured in years. Central banks, as well as governments through fiscal stimulus measures, have played a key role in supporting markets. This is a time to be patient,
From unconventional monetary policy to unprecedented policy coordination Unprecedented policies will be needed to respond to the next economic downturn. Monetary policy is almost exhausted as global interest rates plunge towards zero or below. Fiscal policy on its own will
As the world assesses what will change after the COVID-19 pandemic, Jim Cielinski, Head of Fixed Income, introduces the questions Janus Henderson expects to be key in setting investment strategy going forward. We seek to share the insights of our
White Paper Rising Stars in a New (Fed) World Recent unprecedented action by central banks, notably the Federal Reserve on April 9th, has helped markets recover meaningfully. This has caused many investors to wonder, “What do we do next?” or,
AXA Investment Managers ‘Onder Economen Lunch’ Virtuele meeting, dinsdag 12 mei 2020 Overheden en centrale banken hebben met hun noodingrepen erger voorkomen en op financiële markten gloort herstel, maar de vooruitzichten per sector liggen mijlen uiteen en voor de economie
#20 – Top Five Best Read Research on OpinioPro And it’s Saturday again: the day for us to publish our Top Five Best Read on OpinioPro this last week. Populair tags were ‘asset allocation‘ and ‘equities‘, furthermore our event calendar
Cross Asset Investment Strategy Markets (financial cycle) are leading the economic cycle and will bottom out before the end of the coronavirus pandemic. However, they would stabilise once reassured on three points: The cyclical pattern of the pandemic, or when
An Academic View As the COVID-19 virus continues to tighten its grip on the world – causing wide spread lockdowns and large-scale disruptions to global supply chains – governments, central banks, and regulators have been left with little choice but
Visie op asset allocatie Vorige maand hielde we nog enige slag om de arm in het antwoord op de vraag of de verspreiding van het coronavirus een wereldwijde recessie zal veroorzaken, maar inmiddels is dat wel duidelijk. Terwijl nu ongekend
The court ordered the German government to ensure the ECB carried out a “proportionality assessment” of its vast purchases of government bonds. Whilst the ECB should be successful in proving that its purchase scheme was necessary and “proportional”, further expansion
Economic crises often lead to a reshuffling of the economic and political ideological corpus. The Great Depression gave birth to the modern Welfare State, a hallmark of most liberal democracies until the oil shocks in the late 1970s. The 2008
Week Ahead Focus: German Federal Constitutional Court ruling, US Labor Market Report, Eurozone public debt This week, the German Federal Constitutional Court ruled on a lawsuit against the purchase of government bonds by the ECB and thus the Bundesbank under
Allocation views We have seen a robust global central bank policy response that, in its breadth and scale, is larger than all the stimulus programs seen during the 2008 global financial crisis. Events and timelines have been compressed in this
Rates in lockdown for longer With the outbreak of the coronavirus hitting the global economy, central banks have stepped up to the plate by delivering significant amounts of easing. Official yields are now at or below zero for all developed
CEE Market Insights This week, the central bank meetings in Czechia and Serbia should be the key events in the region. While stability of rates is broadly expected in Serbia, the Czech National Bank is, in our view, about to
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