By the time the outcome of the UK referendum to leave the EU became clear, the pound sterling (GBP) started the steepest descend in 24 hours against the euro since the European single currency came into existence. Against the dollar, GBP experienced its largest two-day drop in the post-Bretton Woods era.
Financial markets took a serious hit at the start of 2016 on yet another wave of worries about China. It’s widely accepted that a severe economic crisis in China is one of the most important risks again for this year. We agree.
The annual symposium in Wyoming looks set to attract a great deal of attention again as hot economic issues and policy options are being fiercely debated among experts. Against this background, we have updated our view on central bank policy.
Low inflation has been a concern for Western policymakers ever since the start of the Great Recession. Despite record low interest rates and unprecedented balance sheet expansion most central banks are still looking for higher inflation.
Equities performed very weakly in December, resulting in a year which posted a loss overall. Our expert, Johan Gallopyn, takes stock of the previous month and the year 2018 in terms of the equity, bond, currency and commodity markets.