Read our market review and find out all about our theme of the week in MyStratWeekly with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
Topic of the week: in defense of Italy
- Italian problems are notorious: very high public debt, anemic growth, ageing population, etc.
- This paper focuses solely on certain positive aspects that are often underestimated: a strong external position, conservative fiscal management, rates that have become favorable, etc...
- A more positive view of, with lower rates, could do much to place Italy on a more positive path. That is why, too, the arrival of Mario Draghi is crucial.
Market review: Stress testing equities’ duration risk
- T-note breaks through 1.30% ceiling amid steepening pressure
- Growth stocks pull back…
- … despite supportive earnings releases
- Energy crisis in the US, crude prices rise further
Gross non-performing loans and advances ( % of total gross loans and advances)
For the Eurozone, the rate rose from 8.1% at the end of 2014 (first digit in the series) to 2.8% in Q3 2020, a two-thirds decrease. The decline in Italy (from 17.0% to 5.6%), Spain (from 8.0% to 3.0%) or Portugal (from 17.8% to 6.5%) is of the same magnitude.
However, we must put this good news into perspective. The bad debt rate is a , it is clear that the Covid crisis should push these numbers up. On the other hand, these national aggregates hide a very large disparity at the level of banks).
Figure of the week
150 bps is the slope between the 5 and the 30-year yields in the United States. A mark passed last week.
And even 156 bp last Friday. We need to go back to August 2014 to find a similar level.
To go further