A look at different scenarios for the ECB’s exit from quantitative easing and its expected rate hiking cycle. Our baseline scenario for ECB normalisation still holds. We expect QE to end in December 2018 and a first rate hike in September 2019. The ECB is likely to wait until its 26 July meeting to make its decisions on QE and forward guidance. Still, downside risks have risen to the point where another open-ended QE...
Read More »FX Daily, May 25: US Dollar Loses Momentum Ahead of the Weekend
Swiss Franc The Euro is down by 0.63% to 1.1545 CHF. This is the fifth day in sequence that the Swiss Franc appreciated. EUR/CHF and USD/CHF, May 25(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Italian stocks are flat, while most European bourses are higher, with the Dow Jones Stoxx 600 up 0.5% in late morning turnover in Europe. The benchmark is lead by real estate,...
Read More »Switzerland Remains in Top Five for Competitiveness Despite Fall
The International Institute for Management Development (IMD) in Lausanne ranked 63 countries for competitiveness. (Keystone) Switzerland has dropped from second to fifth place in an annual ranking of the world’s most competitive economies, whilst the United States have moved up three places to the top. Switzerland’s fall is due mainly to “a slowdown in exports, job growth and international investment”, says the...
Read More »Sustainability Boils Down to Scale
Only small scale systems can sustainably impose “skin in the game”– consequences, accountability and oversight. Several conversations I had at the recent Peak Prosperity conference in Sonoma, CA sparked an insight into why societies and economies thrive or fail: It All Boils Down to Scale. In a conversation with a Peak Prosperity member who goes by MemeMonkey, MemeMonkey pointed out that social / economic organizations...
Read More »Is Political Decentralization the Only Hope for Western Civilization?
Voting with their Feet A couple of recent articles have once more made the case, at least implicitly, for political decentralization as the only viable path which will begin to solve the seemingly insurmountable political, economic, and social crises which the Western world now faces. Fracture lines – tax and regulatory competition allows people to “vote with their feet” – and they certainly do. - Click to enlarge In...
Read More »PMIs point to downside risk to near term euro area growth
Euro area flash PMI indices failed to stabilise in May. Details were somewhat less worrying than headline numbers and overall still consistent with a broad-based economic expansion, if only at a slower pace than last year. Our forecast of 2.3% GDP growth in 2018 still holds, but the balance of risks is now clearly tilted to the downside in sharp contrast with the situation prevailing a few months ago. The deterioration...
Read More »FX Daily, May 23: Greenback Pushes Lower
Swiss Franc The Euro is down by 0.34% to 1.1601 CHF. This is the fifth day in sequence that the Swiss Franc appreciated. EUR/CHF and USD/CHF, May 24(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is pulling back after recording new highs for the year against the euro and sterling. The greenback is lower against nearly all the major currencies, but the...
Read More »FX Daily, May 24: Greenback Pushes Lower
Swiss Franc The Euro is down by 0.34% to 1.1601 CHF. This is the fifth day in sequence that the Swiss Franc appreciated. EUR/CHF and USD/CHF, May 24(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is pulling back after recording new highs for the year against the euro and sterling. The greenback is lower against nearly all the major currencies, but the...
Read More »Swiss pharma suspected of delaying generic competition
Switzerland is home to a thriving pharmaceutical industry. (Keystone) - Click to enlarge The United States Food and Drug Administration (FDA) published Thursday a list of pharmaceutical companies that include Basel-based Novartis and Roche, all of which are suspected of hindering the development of generic versions of their own medicines. Over 150 complaints were filed. The FDA slammed the development of...
Read More »Anchoring Globally Synchronized Growth, Or We Gave Up Long Ago?
January was the last month in which China’s National Bureau of Statistics (NBS) specifically mentioned Fixed Asset Investment (FAI) of state holding enterprises (or SOE’s). For the month of December 2017, the NBS reported accumulated growth (meaning for all of 2017) in this channel of 10.1%. Through FAI of SOE’s, Chinese authorities in early 2016 had panicked themselves into unleashing considerable “stimulus.” There...
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