India Economics Focus Our key calls for 2021 The distribution of an effective COVID-19 vaccine in India will brighten the economic outlook next year, but India’s recovery will still be one of the weakest among major economies. One consequence is... 16th December 2020 · 10 mins read
Japan Data Response Flash PMIs (Dec.) The rebound in the composite PMI in December is consistent with our view that the third virus wave will slow the recovery but won’t derail it. 16th December 2020 · 2 mins read
Japan Data Response Japan External Trade (Nov. 2020) While export values edged down again in November, they should rise above pre-virus levels. That said, due to the weakness in services exports, overall exports won’t return to pre-virus levels until... 16th December 2020 · 2 mins read
Canada Economics Focus What if households unleash their savings? Due to lower spending and the generosity of government transfers, households are set to save $200bn more in 2020 than in 2019. With that rise equivalent to 14% of consumption, there are upside risks... 15th December 2020 · 11 mins read
US Data Response Industrial Production (Nov.) The solid 0.8% increase in manufacturing output last month underlines that production is continuing to catch up with the recovery in consumption. Production will continue to rise, even as consumption... 15th December 2020 · 2 mins read
Canada Data Response Manufacturing Sales (Oct.) Manufacturing sales only edged up in October and the disruption from the coronavirus at home and abroad is likely to hold back growth in the next few months, but we are more positive about prospects... 15th December 2020 · 2 mins read
UK Economics Update Standing out from the 2021 crowd In contrast to the consensus, we think that the economic recovery in 2021 will be quicker and fuller, the Bank of England will continue to shy away from negative interest rates, the Chancellor won’t... 15th December 2020 · 3 mins read
UK Economics Update Standing out from the 2021 crowd In contrast to the consensus, we think that the economic recovery in 2021 will be quicker and fuller, the Bank of England will continue to shy away from negative interest rates, the Chancellor won’t... 15th December 2020 · 3 mins read
China Data Response China Activity & Spending (Nov.) China’s economy continued to accelerate across all fronts in November. We expect output to remain above-trend in the coming quarters, even as tailwinds from stimulus and exports start to ease. 15th December 2020 · 3 mins read
Europe Data Response Euro-zone Industrial Production (Oct.) October’s increase in euro-zone industrial output marked a decent start to the quarter and we think that production will rise in Q4 as a whole. Industry has been largely unaffected by the more... 14th December 2020 · 2 mins read
Emerging Europe Data Response Turkey Industrial Production & Retail Sales (Oct.) Turkey’s industrial production and retail sales data for October suggest that the economy carried a lot of momentum into the start of Q4 but the recent tightening of virus containment measures... 14th December 2020 · 2 mins read
Japan Data Response Bank of Japan Tankan (Q4 2020) The sharp rebound in the Q4 Tankan supports our view that the economy will rebound relatively swiftly from the dislocation caused by the pandemic. And while firms’ capital spending plans point to... 14th December 2020 · 2 mins read
Canada Economics Weekly Loonie flies despite Bank’s pledge to keep yields low The Canadian dollar jumped to a two-year high this week and, despite the pledge from the Bank of Canada that it will keep rates low across the yield curve, we think there is still scope for further... 11th December 2020 · 7 mins read
Nordic & Swiss Chart Pack SNB not out of the woods yet As well as being a game-changer for economic prospects next year, the positive news on the vaccine front has also helped to ease the upward pressure on the Swiss franc against the euro. The franc... 11th December 2020 · 5 mins read
UK Economics Weekly Risk of a "cooperative" no deal Brexit rises The next Brexit decision “deadline” on Sunday 13 th December, may or may not be the turning point that results in the UK and EU hurtling either towards a deal or a no deal. But with the Brexit... 11th December 2020 · 9 mins read
Global Economics Update Will households spend the extra money they have saved? One of the biggest upside risks to our forecasts is that households spend the extra savings that they have accumulated during the past few months. If they do, North America and the UK look likely to... 11th December 2020 · 6 mins read
