Euler Hermes World Agency Economic Update – September 2020
In this edition of Euler Hermes Economic Update, they share their view on The hisses of the tech bubble and on How European consumers are still firmly in the woods. They also share their findings from Allianz pulse 2020: The political attitudes of the French, Germans and Italians and on Quantitative easing in emerging markets.
Back to school: When the tech bubble hisses
The stocks that had recently led the market’s march upward are the ones that have fallen the most since 03 September. Zoom has fallen by 9.23%, Tesla by 16.99%, Apple by 13.63%, Microsoft by 11.34%, Alphabet-Google by 11.14%, Netflix by 13.05%. However, these companies are as good and promising today as they were yesterday or the day before yesterday.
European consumers are still firmly in the woods
Private consumption is key in determining the shape and speed of the Covid-19 recovery. We see three reasons why the consumer recovery in Europe will look quite detached from the trend in retail trade.
Allianz pulse 2020: The political attitudes of the French, Germans and Italians
We decided to check the pulse in Germany, France and Italy by interviewing a thousand people in each country on their views on political priorities, reform needs and aspirations. In the consumption behavior, the number of respondents who say that they want to consume less in the future exceeds the number of those who want to consume more many times over.
Quantitative easing in emerging markets: Playing with fire?
The Covid-19 pandemic marked a turning point for ‘unconventional’ monetary policies in emerging Markets. However, debt sustainability and inflation are the biggest risks ahead, especially for Brazil, Costa Rica, India, Turkey and Hungary. The easing of domestic monetary conditions was another short-term success of the QE.