S&P Global Ratings’ Post

Over the past year, a contraction of -1.41% is observed in the Euro Area M2 Money Supply. When looking at the monthly percentage change in M2 Money Supply, an overall decelerating trend is observed. Within the framework of the ECB's tight monetary policy, a steady stance is noted in its anti-inflationary monetary policy decisions. #marketing #finance #financing #markets #japan #economy #investing #investments #bonds #etf #greeneconomy #macroeconomics #investmentstrategy #data

European banks' run of soaring profits and record shareholder payouts will be put to the test this week, as investors assess how quickly the boost from higher interest rates is fading and whether a weak economic outlook will make life more difficult. To learn more - https://lnkd.in/d-5my_TT #europe #bankingandfinance #interestrates #economynews #europeanbusiness #GIawards #GazetInternational #GI

🇱🇺 In the event of a macrofinancial adverse scenario, four #banks in #Luxembourg would see their common equity tier 1 capital ratio drop below 8%, and five banks would experience a decline below 3% in their leverage ratio--with two of these banks falling below both thresholds--according to a recent International Monetary Fund report. https://lnkd.in/ei548t94

#France's bond spread relative to #Germany is dropping after the outcome of the French #elections. A couple of observations: - What pundits like to call 'mainstream' parties will work together to keep #LePen from reaching an absolute majority. - But what are mainstream parties these days? Le Pen got 33% of the vote. Statistically, it's difficult to call something far (right in this case.) - What confidence can voters have if the alternative is what is dubbed 'far-left,' which is making a habit of rioting when voting results do not end up in their favor? - What power does #Macron have left, being somewhere in the middle, trailing the 'far' right and left? - Markets rightfully worry about #deficits and #debt, but #Macron and predecessor already made a mess of France's finances. - So, instead of cheering the election outcome like French stocks and bonds and the euro are doing, I think recent developments are another painful example of political polarization and weakness.

Tomorrow, the #Commonwealth Finance Ministers Meeting (#CFMM) will take place alongside the IMF/World Bank Annual meetings. Ministers will address global economic challenges to shape a resilient future for all Commonwealth citizens. Learn more 👉 bit.ly/3ZN0yg4

Check out this @foryoupageau article to find out what the Reserve Bank has in store for #Australia's interest rate decision today: https://lnkd.in/gvjeYzx8 #InterestRates #ReserveBank #Economy

In this week's edition of the #SSA roundup: This week we examined how SSA issuers plan to navigate post-election markets next week, as the #EU looks set to lead the way. https://lnkd.in/eHUwkBPq We also took a closer look at what the landslide victory for the Labour Party in the UK means for different corners of the capital markets https://lnkd.in/eHnZ5vPF Rentenbank took advantage of a relief rally after the first round of French elections to bring its first #euro benchmark of 2024. Leopold Olma talked us through the timing of the deal and how relative value helped the issuer secure an oversubscribed, high quality order book https://lnkd.in/evPHwBna KfW also made an appearance this week and made its blockchain-based bond debut. Tim Armbruster, Petra Wehlert and Tim Meirer sat down with us to go through the €100m syndicated deal, the pricing strategy – which entailed a clear ‘digital premium’ – as well as the agency’s plans to further advance its digital journey as it called for other market participants, including the buy-side and central banks, to join in https://lnkd.in/eb7wuYrc #capitalmarkets

The CBE’s Monetary Policy Committee (MPC) decision to maintain the overnight deposit rate at 19.25%, the overnight lending rate at 20.25%, and other key rates at similar levels for the third consecutive time with the persistent inflationary/economic pressures raises a lot of questions about the effectiveness of the current monetary policies in stimulating the economy! CBE's approach in light of the challenges in maintaining currency stability and adequate foreign exchange reserves prompts critics to advocate for a different monetary policy strategy to navigate these difficulties more effectively!!!

European banks – back for good? Europe's banking industry broke a 15-year record in 2023, with nominal net income surpassing pre-financial crisis highs, driven by rising interest rates. Despite reduced credit demand, low risk costs, and comfortable capital ratios, banks saw exceptional returns to shareholders. Both cost-income ratio and post-tax return on equity significantly improved, putting European banks on par with US competitors for the first time in years. https://lnkd.in/db6YQQEA #banking #bankingsector #investmentview #globaloutlook2024 #industries #banking #europe #us #inflation #economicoutlook #investment #themes #sustainablefinance #banks #view #banks #guide #predictions2024 #macroeconomics #correlation #graphs #assetallocation #forecast #transition #monthlyreview #policy #greentransition  #fixedincome #duration #healthinnovation  #markets #growthmarketing

Outstanding Bonds Due in the Next 3 Years 🌍 Around 40% of sovereign bonds and 37% of corporate bonds globally will mature by 2026, requiring further borrowing from the markets under higher interest rates. Even if inflation is brought down to central banks’ targets, yields will likely remain higher than when most of the debt was originally issued. This will lead to growing financing pressures, particularly in emerging economies where the amount of corporate bonds maturing in the next three years is significant. #Finance #Economy #Bonds #InterestRates #EmergingMarkets #GlobalEconomy #DebtMaturity #Inflation #CorporateBonds #SovereignBonds