Our compact monthly update on developments in the real economy and on financial markets.

Not immune (2020/1/29)

The economy is in a bottoming phase. And financing conditions remain favourable in spite of the coronavirus outbreak. These are arguments against further rate cuts from the Fed and the ECB.

Clear & concise

  • The economic bottoming phase is not yet over even though sentiment has brightened.
  • The coronavirus adds the threat of a fresh downside risk.
  • Despite the recent correction, financing conditions are looking better than expected.
  • The Fed and the ECB will only cut rates further if risks to the economy materialise.
  • Despite short-term downside risks, we are continuing to overweight higher-risk assets.

Read more Not immune (Perspectives edition 01/2020)