The current dynamics of monetary policies is fascinating. The US central bank, the Federal Reserve or Fed, has just announced implementation at the end of the year of a policy that breaks markedly with its strategy since December 2008. The Fed finally seems to be coming out of the financial crisis that kicked off in 2007/2008. Meanwhile, the European Central Bank (ECB) is sticking to its very accommodative policy on a long-term basis. The Eurozone is unable to let go of the monetary crutches it adopted after the 2008 and 2012 crises.
The triggering by the UK of the European Union's Article 50 today formally signals the UK’s intention to seek a divorce and allows exit negotiations to begin in earnest. What does this means for British companies and the risks and opportunities that may arise from ‘Brexit’?
Amid the further steps taken last week by the Fed and the PBOC to normalise policy and lean against improving economic and asset price momentum, a debate among investors continues to rage about how much global monetary policy is tightening and whether market pricing is appropriately calibrated to policymakers’ reaction functions.
Ryanair, Europe’s No 1 airline, today called on the UK Government to put aviation at the forefront of its negotiations with the EU and provide a coherent post-Brexit plan, or risk leaving the UK without any flights to/from Europe for a period from March 2019, when it exits the EU.