Global Markets Training

This two day course will examine all aspects of international macro economics as it relates to the global financial markets. By examining how economic fundamentals impact on financial assets such as equities, bonds and currencies, delegates will gain a better understanding of how to interpret economic news and anticipate market reaction. The course is designed for market participants with little or no formal training in economics.
 

	Date: October 14 to October 15, 2010.
	Duration: Two days (9.00am to 5.00pm)
	Location: London Chamber of Commerce – London, UK
	Trainer: Andrew Bevan
	Course fee: £1690 + VAT – Register online

Day 1 – Growth and Inflation

Economic Growth and Real Interest Rates
+ Which economic indicators move equity and bond markets?
+ Real interest rates and the business cycle
+ Corporate profits and the business cycle
+ Flow of funds – demand for and supply of credit
+ Determinants of economic growth
+ Characteristics of economic cycles
+ What causes recessions?

Inflation and Nominal Interest Rates
+ Inflation expectations and nominal interest rates
+ Money and inflation – Quantity Theory
+ Demand-pull versus cost-push theories of inflation
+ Phillips Curve – wage inflation versus unemployment
+ Inflation and the ‘output gap’ – excess demand
+ Market and survey-based measures of inflation
+ Is deflation in the major economies a serious threat?

Monetary and Fiscal Policy
+ How central banks set short-term interest rates
+ The Taylor Rule and inflation targeting
+ Asset prices and the ‘transmission mechanism’
+ QE and ‘exit strategies’
+ How to monitor the major central banks
+ Market-based measures of policy expectations
+ Fiscal policy and the supply of government bonds
+ Are public finances unsustainable in Europe?
 

Day 2 – Credit, the Balance of Payments and Foreign Exchange

Corporate Bond Spreads and the Business Cycle
+ Which economic indicators move credit spreads?
+ Spreads and expected loss given default
+ Structural models – Merton
+ Defaults and loss rates through the economic cycle
+ The ‘Credit Risk Premium Puzzle’
+ Macro fundamental drivers of bond spreads

Balance of Payments and FX
+ Which economic indicators move foreign exchange markets?
+ Balance of payments accounts
+ Law of One Price – traded goods arbitrage
+ Absolute and Relative Purchasing Power Parity (PPP)
+ Definition of the real exchange rate
+ Exchange rate models
+ Is the Euro now over-valued?

Economic Indicators and the Markets
+ Definition and measurement of key economic indicators
+ Consensus expectations and the impact of ’surprises’
+ Why does US news move global markets?
+ Why does European news have less impact on global markets?
+ Leading indicators of economic activity