Economic Insights

Oct 21, 2022

Market Volatility and Corporate Bonds: Collateral Damage

ver the last few months, more aggressive monetary tightening, especially in the US, has led a steep sell-off in public debt markets, resulting in unprecedented interest rate volatility.

Oct 20, 2022

Can the booming battery sector help Europe with its energy crisis?

The global energy storage market is expected to grow 15 to 19-fold by 2030, mostly stemming from the US and China, with cumulative energy storage capacity totaling 400 to 500 GW.

Oct 14, 2022

‘Whatever it takes’ reloaded? Europe’s fiscal response to the energy crisis

While fiscal support in Europe will significantly reduce the impact of higher energy prices on real disposable incomes and soften the blow on demand, it could slow down the reduction in inflation rates.

Oct 12, 2022

Allianz Global Wealth Report 2022: The last hurrah

Global financial assets are set to decline by more than -2% in 2022, the first significant destruction of financial wealth since the Great Financial Crisis (GFC) in 2008.

Oct 05, 2022

Globalization 2.0: Can the US and EU really “friendshore” away from China?

Globalization is changing, not dying, but mounting geopolitical tensions are pushing the US and Europe towards reducing their dependence on China. Yet ‘friendshoring’ is easier said than done.

Oct 04, 2022

Bond market meltdown in the UK: a first post mortem and key takeaways

The gilt crash in the UK was not a repeat of the Eurozone sovereign debt crisis, but rather a liquidity-induced market accident that put financial stability at risk.

Sep 30, 2022

Eurozone public debt: The interest rates reality check

Rising interest rates are a reality check for Eurozone public debt. But our interactive debt tool shows that France, Italy and Spain will struggle to bring down debt levels.

Sep 29, 2022

Reverse currency war puts emerging markets at risk

The combination of tighter global financial conditions and persistently weak risk sentiment favors a substantially stronger US dollar and thus puts increasing pressure on many emerging markets with unsustainable external imbalances.

US housing market: The first collateral victim of the Fed

Sep 22, 2022

US housing market: The first victim of the Fed

Real property prices are set to decline by -15% in the next 12 months, pushing the US economy into a recession.