November 18, 2021: -The European Central Bank is warning valuations in many asset markets as the region continues to recover from the pandemic on the back of ultra-low interest rates and huge stimulus measures.
On Wednesday, in its biannual stability report, the euro zone’s central bank mentioned vulnerabilities in property and financial markets, which added that “risk-taking by non-banks and elevated sovereign and corporate debt is building up.”
On property, it says that risks of price corrections over the medium term had increased substantially between rising estimates of house price overvaluations.
“In particular, households with variable rate mortgages or shorter fixed-rate periods on their mortgages are exposed to an unexpected increase in interest rates, that adversely affects their ability to service their debt,” the report said.
Luis de Guindos, the vice president of the ECB, is surged a “striking buoyancy” for equity and risky asset markets, “which makes them more susceptible to corrections.”
“There have been examples of established market players exploring more novel and more exotic investments. In parallel, euro area housing markets have expanded rapidly, with little indication that lending standards are tightening in response,” he said.
Speaking to CNBC, de Guindos said near-term risks were declining, but there were rising vulnerabilities for the medium term.
He insisted that inflation for the region should still be seen as “largely transitory.”
“They are going to start to fade out over the next months,” he told CNBC.
“I think that perhaps we reach a peak in terms of inflation in November, and afterward, we project that inflation will start to slow down.”
In September, the central bank announced it would be buying fewer bonds off the back of surging consumer prices. This began the process of slowly winding down its substantial pandemic-era stimulus package.
Inflation in the eurozone hit 3.4% in September, representing a 13-year high. In October, inflation then hit another 13-year high at 4.1%, as the currency bloc battled surging energy costs.
In September, ECB President Christine Lagarde made it clear that the central bank’s actions were a recalibration but not a tapering. This is because the ECB believes that higher inflation is temporary and will fade throughout 2022.
Some market participants believe the ECB underestimates inflationary pressures and will, therefore, likely have to announce a rate hike before 2023. Indeed, money markets have priced in the probability of a 20-basis point hike for December 2022.
We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.
September 26, 2023: On Monday, Japanese automaker Nissan revealed its dedication to transitioning to completely electric …
In an industry as competitive and fast-paced as Consumer Packaged Goods (CPG), standing out from the crowd requires innovation and adaptability. The cracks in the CPG supply chain were exposed long before the global pandemic struck, but the events of the past year only exacerbated the weaknesses.
Supply chain leaders, including VPs, often find themselves making bets with unknown financial consequences. Having started with largely infeasible plans generated by deterministic “one-number” planning systems, compounded by unexpected supply or demand disruptions, they are forced into last-minute adjustments to meet operational and financial goals.
Unsurprisingly, today’s supply chain faces numerous issues, including sustainability, technology, global economic and political instability, talent management, and supply chain resilience. Advanced forecasting algorithms and predictive analytics are used in supply chain management to help organizations of all sizes make better decisions by providing insights into what’s going on in their business at any given moment and predicting future trends.
Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.
Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.