Author Archives: Sailesh S Radha
ECB Deposit Facility after the rate cut
At its monthly Governing Council meeting, ECB last week decided to cut the rate offered by its deposit facility by 25 basis points, bringing the rate down to 0.00%. See ECB announcement here. The new rate became effective this past Wednesday. Since the new rate came into effect, we have seen some significant changes in… Read More »
Demography is destiny
… was the recent tagline of the morning briefing that Dr. Ed Yardeni sent out to his clients on June 13th. He achieved rock star following on Wall Street when he prognosticated in the late eighties that the Dow will reach 10,000 following the down-fall of communism in Europe. He argued that worldwide prosperity and… Read More »
Risk-on or Risk-off
The chart below plots the ratio of Morgan Stanley Cyclical Index (CYC) to Morgan Stanley Consumer Index (CMR). Ratio of Cyclical Index to Consumer Index The direction of this ratio tells us what the markets expect for the US economy. Since the ratio peaked on March 15, it has been trending down, implying that cycle… Read More »
Size of Europe’s Banking Sector
A brief graphical summary of the size of the banking sector of major Euro zone countries – it’s good to know the size of the monster the financial world is grappling with. Size of Eurozone Banking Sector Size of Banking Sector in Eurozone as Ratio of GDP Size of Capital & Reserves of Eurozone… Read More »