Weekly analysis


08 Feb

Securitised real estate will benefit from the exceptional convergence of business cycles in 2021

Economic stimulus plans also favourable to real estate. The health crisis will not have a profound effect on yields. Real estate remains an effective hedge against a resumption of inflation. Time to invest. Key points Volatility in January did not spare international securitised real estate Alignment of regional and national economic cycles favourable to real [...]
26 Jan

A bearish start to the year for the capital markets

A Probable rebound for the long-term rates in 2021. Increase in the relative attractiveness of the U.S. market. Inflationary risks underestimated. Beware of risk premiums and durations. Key points A bearish beginning of the year for the interest rate markets under the influence of the US Treasury Unanticipated but probable rebound in long-term rates in [...]
21 Dec

How far can risk premiums go down in Europe?

EU finally to release 750 bn in recovery spending. GDP likely to contract in Q4. ECB to increase its support programmes. Fall in risk premiums reaches its limits. Risks return to the markets. Key points End of 1st element of suspense: EU will finally be able to distribute 750 billion in Covid relief End of [...]
11 Dec

More attractive risk premium for US government debt

Economic momentum slows. Weakened employment and consumption. Priority to growth. Unavoidable continuation of deficit monetisation. Rising earnings for equities. Key points GDP momentum expected to slow sharply in Q4 Employment remains fragile and could penalise consumption. The four priorities of the new US president Rising government deficit and risks of structural depreciation of the US [...]
04 Dec

Swiss GDP surprisingly proves most resilient among developed countries

Growth above expectations. Solid domestic demand. Positive outlook for 2021. The franc still seems overvalued. A digital Swiss franc? Consolidation of Swiss equities. Key points Swiss GDP surged by +7.2% in Q3, almost making up for the -8.6% drop at the end of June Domestic demand is surprisingly strong Switzerland has better been able to [...]
02 Dec

A bitter New Year’s Eve for the United Kingdom

Probable contraction of -2.5% in Q4. Increasing economic risks at the beginning of 2021. Limited room for manoeuvre for the BoE. Weak pound sterling. FTSE 100 trading at 17% discount. Key points A few more days to avoid a disastrous no-deal Brexit for the British Temporary rebound in GDP in Q3 Probable contraction of -2.5% [...]
20 Nov

Nikkei benefits from better than expected corporate results

Disappointing GDP growth. Greater economic risks in Q4. The BoE is considering applying negative rates. Long rates are close to zero. Negative prospects for the pound and equities. Key points A no deal Brexit is on the horizon, the worst-case scenario is becoming increasingly likely 1 trillion euros’ worth of trade will be subject to [...]
15 Oct

A difficult autumn for the United Kingdom with no deal Brexit in sight

Disappointing GDP growth. Greater economic risks in Q4. The BoE is considering applying negative rates. Long rates are close to zero. Negative prospects for the pound and equities. Key points A no deal Brexit is on the horizon, the worst-case scenario is becoming increasingly likely 1 trillion euros’ worth of trade will be subject to [...]
14 Oct

Economic downturn in the EU at the end of the year

The health crisis is making a comeback in Europe. The ECB is monetising public and private debt. Capital markets are under control. The agreement of 21 July strengthens the euro. Significant downside risks for equities. Key points Economic downturn in the European Union Germany shores up European growth EU rules on public debt will have [...]
13 Oct

US presidential elections: a game changer for the markets?

Overly optimistic expectations for US GDP. Growth likely to slow in Q4. Rising budget deficit. Massive and unconditional support from the Fed. High risks for equities. Key points Second wave of Covid-19 could slow US economic recovery Over-optimistic expectations for US GDP? US elections will reinforce the new fiscal paradigm Rising taxes threaten financial markets [...]