BoJ preview: Monetary policy decision a close call
Oct 06, 2015 17:31 pm UTC| Commentary
The BoJ will hold a Monetary Policy Meeting (MPM) on 6-7 October. It is believed the central bank is likely to maintain the current pace of monetary easing because (1) it is due to revise its economic and inflation...
VW raises risks to the diesel industry and the euro area economy
Oct 06, 2015 16:46 pm UTC| Commentary
The VW scandal is raising fears over the outlook for the euro area economy, and Germany in particular. With the information available currently, the baseline remains that while substitution effects will arise, these will...
Good news on Asian trade pact, bad news on global trade
Oct 06, 2015 15:29 pm UTC| Commentary
Good news came over the weekend that an agreement was reached on the Trans-Pacific Partnership (TPP) in a trade pact that covers 12 countries, 800 million people, and almost 40 percent of the global economy. Global trade...
US Q3 GDP tracking 1.5% after August trade data
Oct 06, 2015 14:45 pm UTC| Commentary
The nominal trade deficit widened to $48.3bn in August, narrower than forecast ($50.0bn) and close to consensus expectations ($48.0bn). The July deficit was little-revised in nominal terms ($41.8bn, initial: $41.9bn) such...
Tepid global growth leads to substantial widening in U.S. trade deficit
Oct 06, 2015 14:39 pm UTC| Commentary
The U.S. international trade deficit widened substantially to $48.3 billion in August, from $41.8 billion in July. The widening in the deficit was slightly worse than the 48.0bn expected by the market. With the exception...

Low take-up at ECB's TLTRO 5, but liquidity outlook remains bright
Oct 06, 2015 12:47 pm UTC| Commentary Central Banks
The results of the ECBs fifth TLTRO on 24 September were particularly weak, with a take-up of a mere 15.5bn, the lowest among all TLTROs conducted so far. A combination of large borrowing at the previous TLTROs and low...
EGB spreads to maintain resilience
Oct 06, 2015 12:42 pm UTC| Commentary
Certain parts of the EUR rates market continue to gradually price in more ECB easing. Despite their recent rally, we are sticking with outright longs in 5y EONIA and France. In EGB spreads, we remain long 10y periphery and...