Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

EUR100bn equity gap for French and Italian SMEs

On top of emergency liquidity measures provided to European SMEs to fight Covid-19, we estimate that Italian SMEs need EUR70bn of recapitalization, French SMEs EUR30bn and German SMEs EUR3bn - after excluding pre-existing zombies.


 

30 million unemployed go missing

An unprecedented rise in the inactive population since February has seen more than 30 million workers going missing from official unemployment statistics across selected OECD and Emerging Market economies. Because of this” hidden unemployment,” the true monthly hit to household consumption could be underestimated by USD14bn. 

 

 

U.S. & Eurozone corporates: Where is the Fed?

Central banks, allegedly in the front line? As the pandemic brought large swathes of the global economy to a standstill, both the U.S. Federal Reserve and the European Central Bank started loading their respective policy bazookas. Both central banks’ decisions triggered an extreme market rotation into corporate credit (especially in the high yielding segment). Taking into account that the U.S. corporate credit market is ~2.5x that of the Eurozone, as of today the ECB has intervened with the double firepower compared to the Fed.