October 2020

You will be able to download all slides in power point for this report
and all data is available excel

V or W?

V for vaccination

Hope that current economic growth levels will sustain in the fourth quarter

FED is likely to further help the markets

Need election over asap

Each next election is more destabilising then previous

Will democrats print more money than republicans?

Corona rebalancing economy is anti capitalist, public workers are far more secure

Corona rebalancing Federal and regional budget deficits need more debt financing

Various governments will be the main borrowers

Banks should do well in the environment when everybody needs credit despite lower margins

This will help to fix the holes in banks capital

But it is still quite alarming if one of bigger banks will fail

Equity and commodities prices reflect lower waccs and dollar printing

But oil is not responding to all the dollars that have been printed

OPEC plus pushed US to cut 2.4 mn boe day of shale oil, but more supply needs to come off

New sanctions on Azerbaijan proposed by Greece are on political radars

Lower energy prices press down on inflation

IT and Technology impact also improves margins. New normal is back inflation will be low.