UBS's Yu: ECB's QE Move Is Supportive of Risk

The video discusses the complexities of tapering and its unexpected support for risk, despite typical associations. It explores the role of central banks, political risk, and fiscal spending in shaping market reactions. The discussion highlights ambiguities in Eurozone policy, particularly in relation to the euro and equity markets. The impact of these policies on the banking sector, including yield curve steepening and profitability, is also examined.

What are the implications of tapering on risk assets according to the discussion?

How does the speaker view the relationship between central bank policies and political risk?

What are the potential effects of negative yielding bonds on inflation as discussed?

In what ways does the speaker suggest that the banking sector could be affected by ECB policies?

What does the speaker mean by 'changing perceptions of perpetual low profitability' in the banking sector?