Report
As long as the decline in unit labour costs prevents a lasting rise in inflation, the “market scenario” may hold
The “financial market scenario” is as follows: Inflation is not permanently high, which keeps long-term interest rates low; Corporate profitability is high and growth prospects are good, which drives up share prices further, especially as long-term interest rates remain low. This scenario can hold as long as wages rise little and unit labour costs fall, since: Inflation is indeed not permanently high and long-term interest rates remain low; Low labour costs boost corporate earnings; Low long-term interest rates make it possible to maintain expansionary fiscal policies that boost growth. Believing in the financial market scenario therefore means believing that wage s will not accelerate and that unit labour costs will remain low for a long time .
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.