BNP Paribas' Edmund Shing: QE Has to Continue

The video discusses the influence of central banks on markets, focusing on Janet Yellen and the ECB. It highlights political uncertainty in the US and Europe, the continuation of quantitative easing, and its diminishing effectiveness. The US economy's growth is slowing, particularly in auto sales, impacting industrial production. Central banks are managing market volatility, but there's a risk of instability. The need for fiscal policy is emphasized as macro indicators show sub-trend growth.

What is one reason the markets are heavily influenced by central banks?

• The economy is stable and predictable.

• Central banks have no impact on markets.

• There are no upcoming elections.

• Political situations are uncertain.

What is a significant indicator of economic slowdown in the US?

• Increase in housing prices.

• Growth in agricultural exports.

• Decline in auto sales.

• Rise in technology stocks.

How are central banks managing market volatility?

• By implementing policies to dampen volatility.

• By encouraging high-risk investments.

• By ignoring market fluctuations.

• By increasing interest rates rapidly.

What is a potential risk if central banks fail to control volatility?

• Volatility could decrease significantly.

• Investors might become overly confident.

• Markets will remain stable.

• Volatility could increase dramatically.

What is becoming less effective as a monetary policy tool?

• Quantitative easing.

• Tax cuts.

• Interest rate hikes.

• Fiscal policy.