Apr 22, 2020

We estimate that in Europe, household saving rates could increase by as much as +20pp to 36% on average in Q2 2020. This means EUR1.3tn of additional savings, or 10% of GDP. Total savings could peak at EUR2.3tn.

Apr 17, 2020

China’s GDP growth collapsed to -6.8% y/y in Q1 2020, down from +6.0% in the previous quarter. This is the first contraction since quarterly GDP started to be published, in 1992 and worse than consensus expectations (-6.0%), though better than our forecast (-9.0%).

Apr 17, 2020

In the six weeks to April 15th, the Fed’s balance sheet has increased by an eye-catching USD 2.1 trillion to USD 6.3 trillion. However, there is still little evidence that this massive injection of liquidity into the financial system has managed to reach the real economy.

Apr 16, 2020

As more countries announce future end dates for lockdowns (France, the UK, Germany), already start curbing them (China, Austria and now Italy and Spain) all of them are outlining their plans to gradually restart activity. Yet one should keep in mind that not all countries are in the same boat; each faces different risks on the eve of deconfining.

Apr 09, 2020

We expect significant volatility around our central Brent crude price forecast of USD 41/bbl as an unprecedented inventory build battles with a hope-driven news flow.

Apr 09, 2020

High frequency data and the news flow from the U.S. allowed us to have a better sense of the size of the Covid-19 shock, the reaction of public authorities and upcoming ripple effects. In this context, we revise our U.S. GDP growth scenario from +0.5% y/y to -2.7% y/y in 2020.