Somewhat muted 90th birthday celebrations at the 'Tower of Basel' comes along with their 'Annual Economic Report' plenty of insights & illustrations of the economic & financial fallout from the #Covid19 crisis: bis.org/publ/arpdf/ar2… Some takeaways (1/4)
2/4 BIS perspectives on the unfolding of the #Covid19 crisis..
3/4 #Covid19 crisis unfoldes... #Oil prices drag down econ activity in key econs...Ratings agencies, awake for this one, downgrades corporates, investors pull back...Banks come under pressure...Investors position as if they anticipate large losses in global #CRE/#RE...#Macro
4/4 BIS perspectives on the actions of their Central Banks & the path ahead in lieu of the #Covid19 crisis..."A swift & forceful response"..."Fiscal deficits & debt ratios will soar"...Fed Swap lines overview...& a dry take on "Monetary financing"...#CentralBanks#MonetaryPolicy
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3/5 #US looking for some revenues...#tax bracket creep...An attempt at some humour; modelling potential cuts to deficit to keep debt equal to 100% of GDP...Consequences of rising #debt & some historic context...#Deficits 2020-2030...#Macro#Risk
The Tower of Basel dropped the 'Quarterly Review: International banking & financial market developments' so I loaded up on espresso & blueberries & dove in2 this trove of soothing CB lingo mixed with some Sufi wisdom & colourful illlus: bis.org/publ/qtrpdf/r_… Some takeaways 1/5
2/5 Riddle me this; "Stock markets rebound unevenly amid downgraded earnings expectations." & "Corp #credit spreads tighten despite indications of persistently high credit #risk" & "funding costs for #EM sovs drop despite weak pf inflows."
3/5 Heads up: "Firms desired leverage can be excessive if companies do not account for all financial distress costs..." "Share buybacks rose just as valuations began to rise..." & "#Credit#risk rose with leverage but it only revealed itself during market stress..."
WIPO has published their +400 page 'Global #Innovation Index 2020: Who will finance innovation report out...full of insights...here are a few key takeaways...(1/3) Bracing for a downturn & impact from the economic slowdown...
3/3 Top R&D spending by sector as share of global top R&D spenders...Top R&D spending firm by sector...Share of global #VC inv by sector...The positive relationship between #innovation & development...
@McKinsey_MGI has a report out titled; '#Risk, resilience & rebalancing in global value chains' it holds some good insights into trends in #GlobalTrade...Here are some takeaways...1/4 Large companies has global #SupplyChains w. 1000s of suppliers, disruption risks varies...
2/4 #Globalisation has been changing in the last decade, sector concentration varies between industries, poten. losses from #SupplyChain disruptions can be as high as 42% of 1 years EBITDA..Supply chain #shocks are becoming more frequent & severe...