- The day after #4 - Inequality in the context of the Covid-19 crisis
The day after #4 - Inequality in the context of the Covid-19 crisis
Tuesday 26 May 2020
Research / Market
In this paper, we explain why and how we expect the COVID-19 crisis to accelerate this phenomenon in the months and years to come, and also present action levers for investors. Indeed, COVID-19, like all major pandemics in this century at least, is likely to push inequalities higher, in a context where inequalities were already becoming a major issue for societies, economies and consequently investors. This is crucial because the short-term responses from public policy makers, if they take place, will undoubtedly reshape the economic landscape, in terms of fiscal policies and redistribution, wage policies, regulation, consumer habits and so on. In this environment, investors will need to include the “inequality” dimension in their analysis of companies, and their engagement policies...
The day after #6 - Inflation: persistent headwinds but a possible inflationary cocktail
Since the beginning of the coronavirus pandemic, all eyes have been on the unfolding health catastrophe and the consequences of confinement: economies halted, exploding rates of unemployment (in particular in the United States), and rising debt levels. In this extraordinary context, inflation is often overlooked. This is a dangerous mistake, in our view. For investors, now more than ever, it is crucial to keep a very close eye on this metric—in particular, since we may be at the beginning of a complete regime shift.
ECB QE Monitor - May 2020
The Eurosystem started its QE in March 2015.
The day after #5 - New Frontiers for Central Banks
Central Banks (CBs) are by nature more flexible than governments. Thus, they have been the most proactive in this crisis, reintroducing large-scale asset-purchase programmes financed by money creation (QE policies).