financial markets

Jörn Quitzau, Chief Economist at Swiss private bank Bergos, discusses the dangers posed to financial stability of rising US government debt. But he sees a lack of serious alternatives to the dollar as the global reserve currency.

Populism feeds on wealth distribution conflicts, so economic growth can help undermine its foundations. Democracy needs capitalism – and vice versa. Two economists from Allianz Global Investors have conducted a study on the economic impact of populist policies.

The ECB is currently reviewing its monetary policy strategy. Bond purchases are of course one available tool – but the central bank should be careful when considering using it.

Investors are turning to safe bonds from Europe. In an interview with Börsen-Zeitung, European Investment Bank President Nadia Calviño says that Europe has the edge on the capital markets at the moment, providing a beacon of clarity, stability and confidence for investors.

Financial markets had already priced in the 6 June interest rate adjustment. The ECB must now weigh up its next move.