EEA News and Press, The European Equity Fund Inc. From 05/01/21

Brexit followed lengthy and difficult negotiations that resulted in a separation agreement stipulating that the UK would leave the single market and customs union but no tariffs on goods or quotas would be applied. The developments in the first month included some that were better tha...

As well as financing escalating government deficits, central banks face an additional problem of replacing contracting bank credit to the non-financial private sector if a slump is to be avoided. Banks are already reducing their credit allocations to the non-financial private sector. ...

With US GDP already back to where it started pre-Covid, and the Fed still on full easing mode, inflation risks remain elevated. Expectations are braced for this, but the absolute level of rates is not offering much protection. Growing confidence in the eurozone recovery gels with ...

Part of these savings was the result of households taking a more cautious stance against an increasingly uncertain economic backdrop (precautionary savings). Our estimates suggest that a large majority of the excess savings (around 85%) built-in 2020 were 'forced' owing to the impossi...

It's clear that the Fed is not for moving away from a super-easy policy setting. This leaves the back end of the curve still quite unprotected from any unexpected inflation. The bond market is listening; US yields rose into the FOMC and came out re-testing lower. We see this as a ...

Trading so far this week has been characterised by a cautious tone that has seen US Treasuries weaken after their early April rally and stock markets retreat from all-time highs. In the case of a less-dovish FOMC, even a pullback in stocks or high yield bond valuations might not preve...

US and UK lead global expansion as eurozone and Japan lag. Virus restrictions, vaccine rollouts, business sentiment and stimulus drive service sector divergences. Manufacturing rises across the board, but worsening supply disruptions hint at rising price pressures. For furth...

18 percent of companies are expected to experience liquidity-related financial distress and 16 percent are expected to experience insolvency risk. The vast majority of IPOs in 2020-2021 have been SPACs (aka, vehicles for swapping ownership of prior investments, as opposed to generatin...

In the week ahead, the Bank of Japan and the Federal Reserve meet. The US and the eurozone provide the first estimates of Q1 '21 GDP, and the preliminary April EMU CPI will be reported. The market is skeptical that the economic conditions will allow the Fed to wait until 2024 to lift ...

The pace of recovery has begun to diverge across economies, with vaccination progress and the scale of government stimulus among the biggest swing factors. Macro disparities have also begun filtering into EPS growth expectations. Cyclically sensitive sectors have dominated the upg...