Weekly Outlook 18/03/2019 to 22/03/2019

Monetary Policy Meetings FED officials are gathering on Wednesday. Interest rates are likely to remain unchanged and, besides new predictions on their future path, this meeting should provide the public with more details on the balance sheet unwinding process. Other Central Bank officials around the world are also meeting this week, in the UK, Brazil, Colombia, Iceland, Switzerland, Philippines, Indonesia, Russia, Thailand and Norway. Given the latest figures on the global economic slowdown, most should be expected to sound dovish on their outlooks, Norway being the probable exception, as its benchmark rate is predicted to be raised. German Banking Merger The two largest publicly-traded banks in Germany, Deutsche Bank AG and Commerzbank AG have announced that officials talks regarding a merger have already started. In spite of job and cost cuts, both banks have struggled to generate revenue growth in the past and this merger comes as a potential solution. One of the key aspects to be considered regards the German Government’s 15.6% participation in Commerzbank AG, as it is yet to be seen whether that public stake would be converted into shares in the combined bank or whether it would be sold off. The upcoming days should provide us with more details on the matter.

Additional Information

  • Next Friday, new US figures from purchasing manager indexes for manufacturing and services will be released

  • UK data on the labor market, inflation and retail sales will be released over the week

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