Low rates are here to stay - at least in the G4. It is becoming increasingly clear that central banks in Europe, the US, the UK and Japan are in no hurry to normalise monetary conditions. Fiscal tightening, needed to curb the soaring budget deficits, simply crowds out monetary tightening….

Timed from the trough in equity markets, we are now one year out from the start of the recovery. The context of the story has gyrated from bailouts of banks to governments, but the overall story remains the ebb and flow of risk appetite. There is a feeling from the…

Euroland growth was surprisingly weak in Q4 2009 with GDP growing a mere 0.1% q/q. France saw highest growth (0.6% q/q) among the larger euro area members, while Germany saw a flat GDP. Spain remained in recession (-0.1% q/q), while Italy slipped back into recession (-0.2% q/q) after a more…

Recent economic reports have cast doubts about the strength and durability of the recovery. Many concerns center on disappointing reports from the nation’s beleaguered housing sector, which has seen home sales tumble following a spurt fueled by the tax incentives. Sales of new and existing homes have fallen sharply in…

As widely predicted, financial markets have been volatile as the end of the period of extraordinary monetary and fiscal loosening draws nearer. Economic growth is picking up and becoming more entrenched in most countries. As a result of this, some central banks, like Australia and Norway, have raised rates a…

The economic recovery is on track with ongoing, but gradual, signs of progress among consumers and businesses, but with some more erratic developments in housing. In Q4 09, the economy delivered its second positive quarter on growth following the recession, with GDP expanding at 5.9% q/q AR. Indeed this turned…