Global Markets Update Market implications of more US fiscal stimulus The unexpected scale of the fiscal stimulus agreed by the Obama administration and Republican leaders has caught the markets off guard. We think the rally in the dollar makes sense, and that investors... 8th December 2010 · 1 min read
Europe Economics Update Irish Budget fails to lift the gloom As anticipated, the first vote on the Irish 2011 Budget was passed by Parliament late last night. But while this reduces the chances of the Government being unable to tap its bail-out facility for... 8th December 2010 · 1 min read
Latin America Economics Update Brazilian inflation increases, but rates still on hold Brazilian inflation rose to 5.6% y/y in November – well above the Brazilian Central Bank’s (BCB’s) 4.5% target. But the bulk of the pick-up was driven by food prices and with policymakers at the BCB... 8th December 2010 · 1 min read
Europe Data Response German Industrial Production & Trade (Oct.) Germany’s impressive industrial recovery continues to support growth in its own economy and in the euro-zone as a whole. But the favourable effects on the region’s peripheral economies are likely to... 8th December 2010 · 1 min read
Emerging Europe Economic Outlook Recovery continues but divergences set to widen in 2011 Emerging markets as a whole are likely to outperform the developed world by a wide margin over the next couple of years but Emerging Europe is still facing a twin speed recovery. While some economies... 8th December 2010 · 1 min read
China Economics Update Inflation Monitor (Nov.) Consumer price inflation probably rose further in November, but the upward momentum appears to be fading. Weekly data show that vegetable prices have fallen in each of the last four weeks. Unless... 8th December 2010 · 1 min read
Japan Data Response Economy Watchers Survey (Nov.) November's Economy Watchers Survey (EWS) suggests that conditions may not be quite as bad in the fourth quarter as some fear, although the outlook is cloudier. The weakness of machinery orders at the... 8th December 2010 · 1 min read
US Economics Update Stimulus proposals could provide sizeable boost to growth The package of tax proposals agreed by the Obama administration and Republican leaders constitutes an additional fiscal stimulus worth slightly less than $300bn, or 2% of GDP, above and beyond what we... 8th December 2010 · 1 min read
Global Markets Update Will common euro-zone bond issuance see the light of day? The establishment of a market for euro-zone government bonds that are guaranteed by all Member States is seen by some as an important contribution to a resolution of the region’s fiscal crisis. We are... 7th December 2010 · 1 min read
Canada Economics Update Bank of Canada in no hurry to raise rates The Bank of Canada sat on the fence today, careful not to say too much until it has updated its economic outlook. The Bank acknowledged economic growth in the second half of this year has been weaker... 7th December 2010 · 1 min read
US Fed Watch Fed needs to give QE2 time before making adjustments After announcing it would purchase an additional $600bn of Treasury securities at the last FOMC meeting in early November, it is very unlikely that the Fed will change course at next Tuesday's meeting... 7th December 2010 · 1 min read
Asia Economics Update Australia's policy tightening is not over, but will be slow The Reserve Bank of Australia (RBA) held its cash rate at 4.75% today, as expected. Its commentary was unusually dovish. Nevertheless, above-trend GDP growth still looks likely in 2011-12, which means... 7th December 2010 · 1 min read
UK Commercial Property Data Response Mergers and Acquisitions Activity (Q3) Mergers and acquisitions (M&A) activity involving UK firms strengthened in Q3, a development that is likely to have supported office rents in Central London. Even so, with economic growth likely to be... 7th December 2010 · 1 min read
UK Data Response UK Ind. Production (Oct.) & BRC Retail Sales Monitor (Nov.) The latest official manufacturing data echoed the recent industrial surveys in suggesting that the recovery in the industrial sector is picking up pace again. But conditions on the high street are... 7th December 2010 · 1 min read
