ECONOMY IN BRIEF
Is the world economy better off than a year ago?
Our latest quarterly publication gives a brief overview of the global economic recovery. The return in investor and consumer confidence combined with the still accommodative stance of monetary policy, allows us to maintain our "prudent optimism" on growth in 2014
in guaranteed debt securities were issued for the first time Friday by a company specialising in debt securitisation. The firm was jointly created by five French banks: BNP Paribas, BPCE, Crédit Agricole, HSBC France and Société Générale. The securities are backed by loans to SMEs and mid-tier companies. Securitisation is the process of converting corporate debt into marketable securities. It fell into disrepute during the US subprime crisis, but now the Banque de France and the ECB want to promote the technique.
ECB previews next month's decision
By saying yesterday that the Governing Council was “comfortable” with acting next month, Draghi likely trapped the ECB into further easing in June. The other change in communication came from stronger rhetoric with respect to FX risks in the context of low inflation.
What currency for independent Scotland?
The Scottish people will be asked whether Scotland should be an independent country in September. One of the main concerns in the event of independence would be uncertainty over currency arrangements between Scotland, the United Kingdom and the European Union, if Scotland asks membership.