Listen to a short summary of this report. Executive Summary Higher Real Yields Have Weighed On Equity Valuations I had the pleasure of visiting clients in Saudi Arabia, Bahrain, and Abu Dhabi last week.…
The Swiss National Bank lifted its policy rate by 50bps to -0.25% on Thursday, surprising expectations that it would stand pat and marking its first rate hike in 15 years. In addition, the post-meeting statement noted that…
Executive Summary Economic growth is now a casualty, and not a driver, of monetary policy choices. Inflation is dictating where central banks are taking interest rates. Our baseline view remains that core US inflation will…
Following an emergency meeting on Wednesday, the ECB pledged to “apply flexibility in reinvesting redemptions coming due in the PEPP portfolio” and “accelerate the completion of the design of a new anti-…
European peripheral bond spreads have continued to widen since the conclusion of last week’s ECB meeting. The Governing Council’s focus on taming inflationary pressures raises risks to the Eurozone economic growth…
The UK economy unexpectedly contracted in April for the second consecutive month. GDP fell 0.3% m/m following a 1% m/m decline in March, disappointing expectations of a 0.1% m/m increase. Service sector activity was the…
Executive Summary ECB & Inflation: Whatever It Takes? Inflation is the European Central Bank’s single focus. This single-mindedness heightens the risks to Euro Area growth, especially because wider peripheral…
The ECB’s June Monetary Policy Statement started with “high inflation is a major challenge for all of us. The Governing Council will make sure that inflation returns to our two percent target over the medium term.…
Executive Summary Natural Gas Markets Eerily Quiet An eerie calm in European natural gas markets belies the state of war in Ukraine that already is producing a cutoff of Russian natgas supplies in retaliation for the EU…