Archive

December 02, 2024
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HEM: Shrinking Euro Doves

  • Europe’s underperformance is over-priced
  • Labour cost rises remain above target-consistent levels
  • Activity trends signal monetary policy as nearly neutral
  • We see the BoE on hold while the ECB and Fed cut 25bp
  • Cuts remain likely to stop early in 2025 as 1998 replays
November 04, 2024
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HEM: De-risking For Election

  • Geopolitical risks urge caution after recent market moves
  • Unemployment trends suggest monetary policy isn’t tight
  • Labour cost rises remain above target-consistent levels
  • We see 25bp cuts at the next ECB, BoE and Fed meets
  • Cuts remain likely to stop early in 2025 as 1998 replays
October 07, 2024
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HEM: Sugar Rush

  • Forceful Fed easing was inconsistent with resilient data
  • Underlying wage inflation remains excessive
  • We see 25bp cuts at the next ECB, BoE and Fed meets
  • Cuts are likely to stop early in 2025 as 1998 replays
  • Excessive frontloaded easing can blow bubbles
September 02, 2024
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HEM: Dovish Delirium

  • Fed pricing defies resilient activity and the risk rally
  • Underlying wage inflation remains excessive
  • We expect 25bp Fed and ECB cuts in Sep (BoE in Nov)
  • Excessive easing can blow bubbles like in 1998
  • We still see a risk of rate hikes in 2025 to reverse cuts

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