Licencia Creative Commons

Thursday, July 25, 2019

ECONOMÍA EN IMÁGENES ( 25 JULIO 2019)


A further rate cut would be catastrophic, especially for German banks. Goldman estimates that 20bps cut (effectively what mkt has priced in betw now and Sep), would trigger aggregate losses in 32 banks they cover of €5.6bn, about a 6% cut to profits




German recession gauge raises the alarm bell: 3mth/5y Bund spread turned neg for first time since GFC. The last time the 3mth to 5y Bund spread inverted was Aug2008 on the eve of Lehman Brothers collapsing



Yields negative out to 21 yrs


10 y Greek debt yields less than US 10 y Treasuries 


ECB interest rate should be around 3,8% instead of ZERO at least according to Taylor rule

via @shuldensuehner

No comments: