Financials

Tighter Regulatory Measures or Financial Panic?

Ąžuolas Ališauskas   For those naïve enough to believe that European banks have resolved their problems, the Bank of England’s most recent stress tests serve as a perfect reminder not to rush to conclusions. Although only RBS failed the test and vulnerabilities were highlighted at Barclays and Standard Chartered, the aggregate Return on Equity (RoE)…

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Will Trump’s election widen the ECB’s shrinking action space?

Tamas Laszlo Babos Donald Trump’s election instantly impacted global markets. Although the vote’s exact effect on Europe’s trade, security, and political landscape remains unclear, it seems to be positive from the European Central Bank’s perspective. The European economy could enjoy a boost due to the reaction of markets, which would indeed widen the action space…

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Historically Low Interest Rates – The New Norm?

Alex Baldwin Eight years on from the global financial crisis, central banks have been paramount to trying to generate economic recovery. Despite monetary policy efforts to stimulate the economy, rising interest rates and economic growth have been illusory. Interest rates have remained so low for so long that historic lows are becoming seemingly normal. Negative…

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Overview of the financial markets: Brexit vs. Trump’s victory

Ąžuolas Ališauskas It is hard to tell whether Britain’s vote to leave the European Union was more surprising than Donald J. Trump’s victory in the US presidential election. However, it is clear that they were both highly unexpected, and triggered massive activity in the financial markets. Both Brexit and Trump’s victory are seen as the…

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A new world order – negative sovereign debt yields

By Thomas Daborn The idea of paying to hold onto something in the hope that it will keep your capital safe or offer a greater return at the end of the period is perfectly well established practice in history. However, in current conditions, the phenomenon of negative bond yields seems to puzzle many investors: a…

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Has the war on terror already been won?

By Tamas Babos After the Paris terror attacks, numerous reactions took place all over the world, and the financial sector was not omitted from this. Predictably enough, police raided neighbourhoods under suspicion, world leaders condemned the assaults and offered condolences, civilians commemorated, and weapons manufacturers’ share prices burst. As soon as stock exchanges opened around…

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European Banks losing momentum

By Thomas Daborn Europe has been thwarted with issues following the systemic financial crisis which spread as a cotangent across the pond. Notwithstanding European issues of mass migration from an unprecedented refugee crisis, xenophobic rhetoric coming out of extremist political figures or the very recent terror scares, Europe has another headwind in its stride. European…

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Is the American mortgage bailout becoming permanent?

By Tamas Babos Two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, may soon require a second bailout after their first one in late 2008, financed during the presidency of Barack Obama. These two bodies are responsible for much of the inner workings of the US housing market. By securitizing American mortgages in the form…

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