Filipe R Costa

The Pound, the Brexit, and the Current Account

The Pound, the Brexit, and the Current Account

5 mins. to read

The ONS has just announced the highest current account deficit on record for the British economy, at 5.2% of annual GDP. While nothing new, this trend may become hazardous now that Brexit plans are under discussion. In fact, some of the effects are already in play and can currently be seen in the stunning deterioration…

Lifetime ISA (LISA) – What’s Not to Like?

Lifetime ISA (LISA) – What’s Not to Like?

4 mins. to read

While the central bank is hurting savers in a bid to turn them into heavy spenders, the government is attempting to do the opposite by creating new savings products to seduce youngsters into saving at an earlier age. Announced in the Budget by George Osborne, the LISA is the most recent addition to the savings…

Front-Running the ECB

Front-Running the ECB

5 mins. to read

Less than one week after the ECB signalled it would start purchasing investment-grade corporate bonds, bond issues are already going through the roof, as everyone is trying to front-run the ECB. From risk-free loans (through open market operations) to corporate loans (through investment-grade bond purchases), the ECB has come a long way in expanding its…

The ECB Does It

The ECB Does It

5 mins. to read

There it is, European-QE, extended version, Part Two! Mario Draghi delighted investors yesterday with an extension of the current ECB asset purchase programme. Well…delighted them with the announcement, but as soon as he started speaking… It sometimes pays to keep your mouth shut. When the global economy is no longer able to provide enough magma…

Commodities – A Real Recovery or a Dead Cat Bounce?

Commodities – A Real Recovery or a Dead Cat Bounce?

5 mins. to read

The Saudis are breathing a sigh of relief, as their oil exports are now valued 45% higher than they were earlier in the year. That is a sentiment no doubt shared by commodities exporters, as iron ore, copper, gold, and many other raw materials experienced two-digit appreciations over the last four weeks. But with the…

Preparing for Recession in Switzerland

Preparing for Recession in Switzerland

5 mins. to read

Switzerland is a great example of how it doesn’t matter all that much whether a country is a member of the EU or not, even when it deeply depends on trading with it. It is also shows that under such a scenario, it doesn’t really matter whether or not the country chooses to keep its…

The ECB Risks Busting European Banks

The ECB Risks Busting European Banks

6 mins. to read

While some are anxiously waiting for an expansion of the current European QE programme, others are praying for that not to happen. At this point, an expansion of QE and a further interest rate cut may act as dynamite for European banks and do little for investors. Banks stand to lose profitability if the European…

Betting on the Brexit

Betting on the Brexit

6 mins. to read

Do you want to know the true probability of Brexit happening? Then forget about political polls and look at predictive markets instead. The odds offered at betting exchanges and bookmakers provide more accurate forecasts of future outcomes than polls can ever command. While the Brexit vote is now a tough call at newspaper and other…

Brexit enters the final stages

Brexit enters the final stages

5 mins. to read

Last Friday David Cameron reached a deal with EU policymakers concerning special treatment for Britain and its EU membership. After a hard battle that ended with only modest achievements, we are now entering the final stages of the Brexit debate, which will culminate in June with a referendum to ask the Brits whether they want…