Economics

Brazil is in recession territory. The country’s fiscal consolidation plan had a major set-back in July as the finance minister Joaquim Levy announced a significant downward revision of the government’s primary fiscal surplus targets. In august, S&P placed Brazil’s foreign currency rating, on negative outlook.

A US government shutdown would not have a direct impact on the sovereign’s ’AAA’/Stable rating, Fitch Ratings says. Its main implication for the US’s sovereign creditworthiness would depend on whether it foreshadowed a destabilisation of US budget policymaking, including brinkmanship over the federal debt limit.

This had been one of the most eagerly awaited FOMC meetings, but in the end the Federal Reserve decided to pass its turn. The last time the Fed Funds rate was raised, back in June 2006, there was a far more compelling case, making the central bank’s job a good deal easier: unemployment was even lower than it is now (4.6% vs. 5.1%) and inflation towered at 4%, while growth reached 2.7% and the 10-year rate stood at 5.1%.

Stéphane Monier, Chief Investment Officer of Lombard Odier (Europe) S.A. reviews the outlook for US interest rates after the Federal Reserve’s statement of 30 July...

According to Rory Bateman,head of european equities at Schroders, volatility in markets is likely to continue for an extended period until the ramifications of a potential Greek exit from the euro are fully understood. QE and current valuations could provide some downside protection for European equities...