Blog With Tag deflation
Uncertainty is very often the driver of market volatility and the last month has clearly demonstrated that. Will the UK vote to leave the EU, will the EU implode over immigration, will Donald Trump become the leader of the free world, is China squaring up for a fight over territory in the South China Seas and have the central banks run out of ways to stimulate their economies?
PegasusCapital - Tue 1st Mar
With the 3rd largest sporting event in the world kicking off this month it’s not been so much about the curved ball as it has been about the slow ball! The referees (World Bank/IMF) have been calling for a delay in US interest rate rises to try and avoid a big hit on emerging markets and raising the possibility of a new credit crunch! Analysts have warned us that China is leading the world into a global recession despite growth across the G20 economies remaining static at 0.7% in Q2. However, Chinese industrial production has slowed to 6.1% (6.4%) and the manufacturing index has fallen to a 6 year low which amongst other things, prompted the OECD to cut its Chinese growth forecast to 6.7% this year and 6.5% for 2016. Meanwhile, despite the devaluation last month the Chinese central bank has used a record $94,000,000,000 of foreign exchange reserves protecting the Renminbi.
PegasusCapital - Thu 1st Oct
It’s happening all over the world from Japan to the US to the UK, official inflation has reached 0% on an annualised basis. The only exception has been the Eurozone where inflation is still in negative territory at -0.3% however, this should edge up over the coming months as the effects of the Quantative Easing programme from the ECB kick in.
PegasusCapital - Wed 1st Apr
The last 6 years or so have seen Central Banks across the world keeping a tight control on money supply and interest rates, trying to stimulate growth, encourage investment and reduce unemployment. The question that has yet to be answered is what do they do when there are no more tricks in the magic box?
PegasusCapital - Mon 2nd Mar
Dipflation, disinflation, deflation, whatever you want to label it, this is a major concern for policymakers around the world. With inflation dropping to 1.1% in the US, 0.5% in the Eurozone and 1.7% in the UK (technically all disinflation) the danger to the global economy becomes more acute.
PegasusCapital - Tue 1st Apr