Country Risk Update
Welcome to the latest issue of D&B's Country Risk Update.
The policies of the main ‘G3’ central banks continue to diverge. In December, the ECB extended its quantitative easing programme to at least end-2017, although it reduced its asset purchase programme from EUR80bn to EUR60bn monthly. Similarly, the Bank of Japan continued with its easing policies, announcing it would ramp up purchases of bonds maturing in over ten years’ time.
In contrast, the US Federal Reserve took another step towards tightening policy, with only its second interest rate increase of the 2000s. The move had been extensively signalled and priced in by most markets.
However, the markets appeared to have been taken by surprise when the Fed indicated that it would adopt a more aggressive policy towards tightening, with three more rises projected in 2017. The differing policies reflect the divergent paths of economic growth across the globe, with the US economy moving towards full employment and target inflation, while inflation in the euro zone and Japan remains muted. The state rescue and potential nationalisation of Italy’s oldest bank in the last weeks of 2016, after a USD1bn anchor investment from Qatar failed to materialise, showed that Italy’s financial system was still vulnerable: indeed, Italy’s bank stocks lost half their market value in 2016.
This complimentary newsletter from D&B's Country Insight Services group has been put together by their team of experts using the most up-to-date information to provide a snapshot of the latest macro market risk situation, and provides an excellent overview for those exposed to cross-border credit or investment risks.
D&B Country Insight Snapshots
Designed with the help of our customers these reports build on the key areas assessed by 'D&B's Country Insight Model' and deliver a perfect balance between mitigating risk exposure and providing insight into new opportunities.
Dun & Bradstreet downgrades its rating outlook for India due to the demonetisation shock.
Read D&B Country Insight Snapshot: India.pdf
Economic activity accelerates in the third quarter but the near-term outlook remains subdued.
Read D&B Country Insight Snapshot: Mexico.pdf
Russia remains in recession but the pace of contraction continues to moderate.
Read D&B Country Insight Snapshot: Russia.pdf
To learn more about how these improvements have been designed to meet your needs when trading overseas, please use the contact details below.
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