Professional Documents
Culture Documents
Research
United States
Economics
Date
15 June 2015
Peter Hooper
Chief Economist
(+1) 212 250-7352
peter.hooper@db.com
Michael Spencer
Chief Economist
(+852) 2203 8303
michael.spencer@db.com
The most important factors contributing to this slowdown have been sharp
decelerations in the business capital stock and innovation. Measurement
error may have contributed as well, but we suspect it is not a major factor.
Torsten Slok
Chief Economist
(+1) 212 250-2155
torsten.slok@db.com
Potential growth may not bounce back quite as quickly as generally assumed
%y/y
%y/y
5.25
5.25
4.50
4.50
3.75
3.75
3.00
3.00
Forecast
2.25
2.25
1.50
1.50
0.75
0.75
0.00
0.00
75
80
85
90
95
00
05
10
15
20
25
________________________________________________________________________________________________________________
Deutsche Bank Securities Inc.
DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MCI (P) 124/04/2015.
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
CPI
% growthc
Current a/c
% GDPd
Fiscal balance
% GDP
2014
2015F
2016F
2014
2015F
2016F
2014F
2015F
2016F
2014F
2015F
2016F
2.4
2.2
3.0
1.6
0.2
2.5
-2.6
-3.2
-3.8
-2.8
-2.7
-2.4
-0.1
1.1
1.8
2.7
0.9
1.0
0.5
2.9
2.7
-5.9
-5.3
-4.4
0.9
1.4
1.6
0.4
0.0
1.4
2.4
3.3
2.6
-2.4
-2.1
-1.7
Germany
1.6
1.6
1.7
0.8
0.2
1.7
7.6
8.0
7.8
0.7
0.6
0.7
France
0.2
1.1
1.6
0.6
0.1
1.1
-1.0
-0.5
-0.8
-4.0
-4.0
-3.4
-0.4
0.6
1.3
0.2
0.1
1.1
1.9
2.5
2.7
-3.0
-2.7
-2.2
1.4
2.8
2.4
-0.2
-0.6
1.5
0.8
1.4
1.0
-5.8
-4.5
-3.9
UK
2.8
2.4
2.3
1.5
0.4
1.9
-5.3
-4.1
-2.9
-5.0
-4.0
-2.0
Sweden
2.4
2.8
2.8
-0.2
0.5
1.5
6.3
5.5
5.0
-1.9
-1.2
-0.6
Denmark
1.1
1.7
1.8
0.6
1.0
1.5
6.2
6.0
6.0
-1.0
-2.5
-2.5
Norway
2.3
2.0
2.2
2.0
2.0
2.0
8.5
8.0
7.5
9.1
9.0
8.5
Poland
3.4
3.4
3.5
0.0
-0.7
1.4
-1.4
-1.6
-1.7
-3.2
-2.9
-2.7
Hungary
3.6
2.7
2.4
-0.2
-0.1
2.6
3.9
3.0
3.1
-2.6
-2.7
-2.4
Czech Republic
2.0
2.7
2.5
0.4
0.5
2.0
0.6
0.2
0.0
-1.9
-1.8
-1.6
Australia
2.7
2.5
3.1
2.5
1.9
2.6
-2.8
-2.8
-2.7
-2.8
-2.4
-2.2
Canada
2.4
2.5
2.7
2.0
1.2
2.2
-2.0
-1.7
-1.4
-0.8
0.0
0.3
US
Japan
Euroland
Italy
Spain
6.4
6.4
6.3
3.4
2.6
3.5
2.3
2.7
2.2
-2.3
-2.8
-2.8
India
7.1
7.5
7.5
6.7
5.1
5.7
-1.4
-1.2
-1.6
-4.0
-3.9
-3.8
China
7.4
7.0
6.7
2.0
1.6
2.7
3.1
3.4
3.3
-2.1
-3.0
-3.0
0.8
0.2
1.9
12.5
13.0
12.8
-2.7
-3.4
-3.3
-5.7
-4.8
-4.2
0.1
-1.4
0.6
6.3
8.5
6.0
-4.5
-4.5
-4.5
-6.2
-5.4
-4.7
2.3
1.2
2.2
6.0
8.5
5.8
1.9
-1.2
-0.4
-2.0
-5.3
-3.2
0.6
-3.2
-0.4
7.8
15.2
6.9
3.1
3.6
4.3
-0.5
-3.0
-1.2
G7
1.7
1.8
2.4
1.5
0.3
2.0
Worlde
3.4
3.3
3.8
3.6
3.3
3.9
Latin America
Brazil
EMEA
Russia
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Q2 15F
Q3 15F
Q4 15F
2014
2015F
2016F
-2.1
4.6
5.0
2.2
-0.7
2.5
3.2
3.1
2.4
2.2
3.0
Japan
4.4
-6.8
-2.0
1.2
3.9
1.0
1.9
2.0
-0.1
1.1
1.8
Euroland
1.1
0.3
0.7
1.3
1.6
1.4
1.7
1.4
0.9
1.4
1.6
US
Germany
3.1
-0.3
0.3
2.8
1.1
1.8
1.9
1.1
1.6
1.6
1.7
France
-0.6
-0.3
0.8
0.1
2.2
1.6
1.6
1.6
0.2
1.1
1.6
Italy
-0.8
-0.5
-0.4
0.0
1.2
1.3
1.3
1.3
-0.4
0.6
1.3
UK
3.6
3.4
2.5
2.5
1.2
2.3
2.1
2.1
2.8
2.4
2.3
Canada
1.0
3.4
3.2
2.2
-0.6
3.0
2.3
3.2
2.4
2.5
2.7
G7
0.1
1.7
2.6
1.9
0.6
2.1
2.5
2.5
1.7
1.8
2.4
a) Euroland forecasts as at the last forecast round on 27/03/15. Bold figures signal upward revisions, bold, underlined figures signal downward revisions. (b)GDP figures refer to working day adjusted data, except
Germany. (c) HICP figures for euro-zone countries and the UK (d) Current account figures for Euro area countries include intra regional transactions. e) The world aggregate has been calculated based on the IMF weights
released in April 2015.
Sources: National authorities, Deutsche Bank Research
Page 2
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Gordon, Robert J. (August 2012), Is US economic growth over? Faltering innovation confronts the six
headwinds.
NBER
Working
Paper
Series,
Working
Paper
18315.
(http://economics.weinberg.northwestern.edu/robertgordon/Is%20US%20Economic%20Growth%20Over.pdf)
2
See Byrne, David M., Stephen D. Oliner and Daniel E. Sichel (March 2013), Is the information
technology
revolution
over?
Finance
and
Economics
Discussion
Series,
2013-36.
(http://www.federalreserve.gov/pubs/feds/2013/201336/201336pap.pdf)
3
See Fernald, John (June 2014), Productivity and potential output before, during and after the Great
Recession. Federal Reserve Bank of San Francisco Working Paper Series, Working Paper 2014-15.
(http://www.frbsf.org/economic-research/publications/working-papers/wp2014-15.pdf)
Page 3
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
This weeks GEP assesses the outlook for productivity growth. Rather than
focus on intractable and unpredictable questions such as the outlook for
innovation growth over the next several decades, we instead focus on a more
modest goal. By decomposing changes in productivity growth over time, we
first show that a lack of business capital spending has been at least as
important as slow innovation growth in explaining recent developments. We
then analyze the pickup in capex required to boost productivity growth enough
to return the real potential growth rate of the economy to 2%. Previewing our
results briefly, we find that 6% average growth of real capital spending is
required to return the economy to 2% real potential growth in five years, and
that a quicker return to 2% potential growth, as projected by the CBO, requires
quite optimistic assumptions about a rebound in capex and/or innovation that
are not the most likely outcomes in our view. We begin by discussing recent
productivity trends in a historical context.
Index
0.4
Index
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0
0.0
-0.1
-0.1
-0.2
-0.2
-20
-16
-12
-8
-4
12
16
20
24
28
But recent weak productivity growth is not only due to the financial crisis. In
fact, productivity growth has slowed noticeably since the mid-2000s (Chart 2).
Over the past 60 years the US economy has experienced two episodes of
sustained high productivity growth (i.e., about 3%: 1948-1973 and 1996-2003),
Page 4
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
and two slower productivity growth periods (i.e., about 1.5%: 1973-1995 and
2004-present). Chart 2 also splits the more recent slow-growth episode into
three subperiods: (1) prior to the crisis (2004-2007), (2) the recession and initial
cyclical rebouond (2008-2010), and (3) the subsequent anemic productivity
growth experience. This division makes it clear that the slowdown in
productivity growth predated the financial crisis and is thus not simply a result
of the financial crisis.
Chart 2. Breakdown of business output growth during historical episodes
%Chg annual rate
Hours
Labor productivity
5.0
4.0
5.0
Breakdown of 2004-present
4.0
3.0
3.0
2.0
2.0
1.0
1.0
0.0
0.0
-1.0
-1.0
-2.0
-2.0
-3.0
-3.0
-4.0
-4.0
What are the forces behind these longer-term trends? Following analysis from
the San Francisco Fed, we decompose historical productivity growth into four
components: changes in labor quality, shifts in the utilization rates of labor and
capital, growth of the capital stock relative to labor (commonly referred to as
capital deepening), and the remaining residual component (commonly referred
to as innovation growth).4 Two differences are evident between the high and
low productivity growth periods. First, the high productivity growth regimes
are marked by significantly faster innovation growth (Chart 3). During the high
growth periods innovation accounted for about 2% points of the almost 3.5%
aggregate productivity growth rate. Conversely, innovation growth averaged
less than % point contribution during the slow growth regimes. Second, the
minimal contribution from capital deepening during the slow productivity
growth periods, especially over the past four years, is also striking. Having
contributed about 1% point to productivity growth in the high growth regimes,
capital deepening added about half that to productivity growth in the 19731995 period, and has actually subtracted from productivity growth over the
past four years, as subdued capex spending has been insufficient to keep pace
with the faster growth in labor input. This anemic performance is certainly
reflected in the very sluggish recovery of growth in the business capital stock,
which continues to grow at previous historic lows despite some recovery from
extreme lows reached during the crisis (Chart 4).
Specifically, we decompose productivity growth as follows: output per hour = capitals share of
income*(capital input growth + labor quality growth + hours growth) + labor quality growth + utilization
growth + innovation growth. For a similar decomposition see Fernald (2014).
Page 5
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Chart 3. Slow productivity growth caused by soft capex spending and slow
innovation growth
%Chg annual rate
Utilization
Innovation
4.0
3.5
3.5
Breakdown of 2004-present
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
-0.5
-0.5
%y/y
6
0
45
50
55
60
65
70
75
80
85
90
95
00
05
10
15
Thus, the recent period of slow productivity growth is primarily due to two
factors: weak innovation growth and weak growth in business capital
spending (relative to the growth of labor input). The latter factor has been
particularly important over the past four years. While innovations contribution
to this slowdown has been larger, it has also been more volatile historically,
and its outlook is more complex to understand and predict, as it is the residual
of the productivity equation. For this reason, we focus on the outlook for
capexs contribution to productivity growth over the next several years. In the
next section we investigate how fast real business fixed investment spending
must grow to be consistent with 2% potential growth for the economy.
Page 6
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
2.00
0.64
Non-business growth
0.85
0.00
Capital share
0.39
Innovation growth
0.43
0.76
1.72
3.30
For historical context, 3.3% capital stock growth is consistent with the average
experience for the 50 years between 1950 and 2000, while the slower capital
stock growth (2.8%) required if innovation growth rebounds is consistent with
the slower pace of capital stock growth observed since the mid-1980s
(Chart 6).
Specifically, we consider the following equation: real potential output growth = business share of
output*(potential business hours growth + business productivity growth) + non-business share of
output*(potential non-business hours growth + non-business productivity growth), where business
productivity growth is given by the equation in footnote 4.
6
Technically, capital input growth data from the San Francisco Feds dataset differs from the BEAs capital
stock growth. To account for this, we translate the implied capital input growth rate into the more familiar
capital stock growth rate from the BEA as follows: Capital stock growth = 0.3059 + 0.7665*capital input
growth (R-squared = 0.71).
Page 7
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
%y/y
6
2.8%
3.3%
-2
-2
-4
-4
25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 00 05 10
20%
Reached in 2017
8%
Reached in 2019
6%
Page 8
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
%y/y
60
60
40
40
20.2%
8.4%
6.2%
20
20
-20
-20
-40
-40
30 35 40 45 50 55 60 65 70 75 80 85 90 95 00 05 10 15
6%
5%
Page 9
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
%chg,AR
20
3.75
3.00
16
2.25
12
1.50
8
0.75
4
Correlation: 0.57
0.00
-0.75
50
55
60
65
70
75
80
85
90
95
00
05
10
15
20
To estimate GDP productivity growth we used business productivity growth minus 0.3%pt.
estimate of potential growth abstracts from trends in the hourly workweek.
Page 10
This
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Chart 11. Potential growth may not bounce back quite as quickly as generally
assumed
%y/y
%y/y
5.25
5.25
4.50
4.50
3.75
3.75
3.00
3.00
Forecast
2.25
2.25
1.50
1.50
0.75
0.75
0.00
0.00
75
80
85
90
95
00
05
10
15
20
25
1969Q4
4.4
NA
NA
NA
NA
NA
1979Q4
4.2
3.0
NA
NA
NA
NA
1989Q4
4.1
2.8
2.7
NA
NA
NA
1999Q4
4.5
3.3
3.1
3.0
NA
NA
2009Q4
4.5
3.3
3.1
3.2
2.0
NA
Most recent
4.6
3.2
3.1
3.2
1.8
2.2
For example, see Byrne, David and Eugenio Pinto (March 26, 2015), The recent slowdown in high-tech
equipment price declines and some implications for business investment and productivity. FRB FEDS
Notes. (http://www.federalreserve.gov/econresdata/notes/feds-notes/2015/recent-slowdown-in-high-techequipment-price-declines-some-implications-for-business-investment-labor-productivity-20150326.html)
Page 11
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
See James Kahn and Robert Rich, Tracking Productivity in Real Time, updates, Federal Reserve Bank
of New York.
Page 12
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
US
In the wake of recent signs of firmer data, Fed liftoff requires only moderate
further confirmation that the economy is still on an above-trend growth path,
with further improvement in the labor market and reasonable prospects that
inflation will eventually move to the Fed's 2% inflation target. We think that the
FOMCs current expectation is for a September liftoff, and the probabilities
remain solidly on that date. A June liftoff would be a huge surprise at this point,
and July seems unlikely (but by no means impossible) for commencing rate
hikes. We expect two 25 bp hikes this year, with the second one coming most
likely in December. We expect the rate of ascent to remain slow well into 2016,
but then to pick up as the labor market continues to tighten.
Japan
Rising wages and a tightening labor market give the BoJ confidence that
inflation will start heading higher later this year, although the Bank's forecast
for when inflation hits 2% has been postponed slightly. So as long as the labor
market continues to tighten, we expect the current policy stance to be
maintained. In any event, we don't expect any tapering off of asset purchases
until after the April 2017 consumption tax increase.
8%
6
4
2
0
2001
2004
2007
Fed
2010
2013
BoJ
ECB
Fed
0.13
0.13
0. 38
0.63
0.88
BoJ
0.10
0.10
0.10
0.10
0.10
ECB
0.05
0.05
0.05
0.05 0.05
Euroland
The risk of an early reconsideration of the EUR60bn per month for 18 months
QE programme is low. Unless Greek-related contagion erupts, we think it will
be the end of the year at the earliest before the ECB will be able to judge the
appropriateness, one way or the other, of the current QE plan.
UK
Our view remains for lift-off in Bank of England policy rates from May next year.
This would be consistent with our call on the Fed (Sep 2015); typically the BoE
moves rates around 9 months after the US.
Sweden
The Riksbank loosened policy in April, increasing the size of its modest QE to
just over 2% of GDP. Recent news suggests against more easing for now.
8%
6
4
2
0
2001
-2
Switzerland
The SNB shocked the markets by abandoning the CHF peg, causing a sizable
jump in CHF vs. the EUR. We expect EUR/CHF to rise to 1.10 by year-end.
2004
UK
2007
2010
Sweden
2013
Switzerland
BoE
0.50
0.50
0.50
0.50
SRB
-0.25
-0.25
-0.25
-0.25
0.50
-0.25
SNB
-0.75
-0.75
-0.75
-0.75
-0.75
Page 13
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Dollar bloc
Canada
In line with the Bloomberg Finance LP/DB consensus, the Bank of Canada left
its target for the overnight rate unchanged at 0.75% for the second
consecutive policy rate announcement. In its press release, the Bank
highlighted the fact that headline inflation is "near the bottom of (its) 1 to 3
percent inflation control range due to the transitory impact of sharply lower
energy prices". The Bank also reiterated that it considers the core inflation rate
(currently 2.3%) to be above 2 percent largely due to pass-through effects of
the lower Canadian dollar and some other one time factors.
Australia
The RBA has left the cash rate unchanged, as was widely expected, leaving the
focus on whether or not the Bank re-introduced any explicit forward guidance.
It did not the final paragraph of the post-meeting statement suggests that the
Bank has maintained its neutral stance on forward guidance.
New Zealand
On June 11, The RBNZ announced that it has decided to lower the OCR by
25bps to 3.25%. This was in line with our expectations. The rationale for policy
easing articulated in their Assessment, and elaborated in the full MPS, was as
exactly as we had outlined when we made our call in early May, and reiterated
in our Data Flash published on 3rd June previewing the meeting i.e. given
developments on the supply and demand side of the economy it was not
possible for the Bank to project an acceptable path for inflation back to 2%
without assuming a policy easing and associated marked weakening of the
exchange rate.
BRICs
10%
8
6
4
2
0
2001
Brazil
In light of hawkish COPOM minutes reinforcing the BCBs commitment to
bring inflation to the 4.5% target in 2016, we expect another 50bp rate hike in
June.
2007
2010
2013
Australia
NZ
BoC
0.75
0.75
0.75
0.75
1.00
RBA
2.00
2.00
2.00
2.00
2.00
RBNZ
3.25
3.25
3.25
3.00
3.00
China
China has entered a significant policy easing cycle since end March. After the
April 100bp RRR cut, the PBoC cut one-year benchmark rates by 25bp on 11
May. We revise our interest rate call and expect two further cuts in 2015 the
next cut in June and another cut in Q3. Fiscal policy also started loosening as
the government removed constraint on local government financing vehicles.
We maintain our view that growth may slow to 6.8% in Q2, and rebound to
7.0% in Q3 and 7.2% in Q4.
India
The Reserve Bank of India cut the policy repo rate by 25bps to 7.25% in the
June meeting, as expected, while signaling that it may be done with rate cuts
for the time being. Having cut rates by a cumulative 75bps this year, the RBI is
seeing room for further easing erode. However, we think the growth-inflation
mix will turn supportive for RBI to consider another 25bps rate cut in this
calendar year.
2004
Canada
30%
20
10
0
2001
2004
China
2007
India
2010
2013
Brazil
Russia
PBoC
2.25
2.00
RBI
7.25
7.25
1.75
BCB
13.25
13.25
CBRF
11.50
11.50
10.50
7.00
1.75
1.75
7.00
7.00
9.00
8.50
Russia
On 15 June, the CBR cut the key rate from 12.5% to 11.5% for the fourth time
in a row (from 17% introduced in December 2014) due to the shift in the
balance of risks towards the support to the economic growth vs. lower
inflation environment. The CBR noted that it is ready to continue with policy
easing in case inflation expectations decline further.
.
Page 14
2014
2015
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
0.13
0.13
0.13
0.13
0.13
0.13
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
Mar
Apr
May
0.1
0.1
0.1
Jun
US
5.25
0.13
0.13 0.13
0.13
0.13
0.13
0.13
0.13
0.13
0.13
0.13
0.13
0.13
Japan
0.50
0.10
0.10
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
Euro area
4.25
0.05
0.75 0.75
0.75
0.75
0.50
0.50
0.50
0.50
0.50
0.50
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.15
0.15
0.15
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
UK
5.75
0.50
0.50 0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
Sweden
4.75 -0.25
1.00 1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.75
0.75
0.75
0.75
0.75
0.75
0.75
0.25
0.25
0.25
0.00
0.00
0.00
0.00
-0.10 -0.25
-0.25
-0.25
Denmark
5.50 -0.75
-0.10 -0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
-0.10
0.05 0.05
0.05
0.05
0.05
-0.05 -0.05
-0.05
-0.05
-0.50
-0.75 -0.75
-0.75
-0.75
Norway
5.75
1.25
1.50 1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.25
1.25
1.25
1.25
1.25
1.25
Switzerland
2.75 -0.75
0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.25 -0.75
-0.75
-0.75
-0.75
-0.75
Australia
7.25
2.00
3.00 3.00
3.00
3.00
2.75
2.75
2.75
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.25
2.25
2.25
2.00 2.00
Canada
4.50
0.25
1.00 1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.75
0.75
0.75
0.75
0.75
New Zealand
8.25
2.50
2.50 2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.75
3.00 3.00
3.25
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
0.05
0.05
0.05
0.05
0.1
0.1
3.25
EMEA
Czech
Hungary
Israel
Kazakhstan
Poland
Romania
3.75
0.05
0.05 0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
11.50
1.65
4.25
4.00
3.80
3.60
3.40
3.20
3.00
2.85
2.70
2.60
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
2.50 2.40
0.05
2.30
2.10
2.10
2.10
2.10
2.10
2.10
2.10
2.10
1.95
1.80 1.65
0.10
0.10
5.50
5.50
4.50
0.10
1.75 1.75
1.75
1.75
1.50
1.25
1.25
1.25
1.25
1.00
1.00
1.00
1.00
1.00
0.75
0.75
0.75
0.75
0.75
0.50
0.25
0.25
0.25
0.25
0.25
0.25
0.10
11.00
5.50
5.50 5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
6.00
1.50
3.00
2.75
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.00
2.00
2.00
2.00
2.00
1.50
10.25
1.75
5.25 5.25
5.25
5.25
5.25
5.25
5.00
4.50
4.50
4.25
4.00
4.00
3.75
3.50
3.50
3.50
3.50
3.50
3.50
3.25
3.25
3.00
2.75
2.75
2.50
2.25
2.25
2.00
7.50 7.50
15.00 14.00
14.00
1.50
9.50
5.00
5.50 5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
7.00
7.50
8.00
8.00
8.00
8.00
9.50
South Africa
12.00
5.00
5.00 5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.50
5.50
5.50
5.50
5.50
5.50
5.75
5.75
5.75
5.75
5.75
5.75
5.75
5.75
5.75
5.75
Turkey
22.50
4.50
5.50 5.50
4.50
4.50
4.50
4.50
4.50
4.50
10.00 - 10.00
10.00
10.00
9.50 8.75
8.25
8.25
8.25
8.25
8.25
8.25
7.75
7.50
7.50
7.50
7.50
Ukraine
12.00
6.50
7.50 7.50
7.50
7.50
7.50
7.00
7.00
6.50
6.50
6.50
6.50
6.50
6.50
6.50
9.50 9.50
9.50
12.50 12.50
12.50
12.50
14.00 14.00
14.00
19.50 30.00
30.00
Brazil
13.75
7.25
7.25 7.25
7.25
7.50 8.00
8.00
8.50
9.00
9.00
9.50
10.00 10.00
11.00 11.00
Chile
8.25
0.50
5.00 5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
4.75
4.50
4.50
4.50
4.25
4.00
10.00
3.00
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
Mexico
8.25
3.00
4.50 4.50
4.00 4.00
4.00
4.00
4.00
4.00
3.75
3.50
3.50
3.50
3.50
Peru
6.50
1.25
4.25 4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.00
4.00
4.00
China
4.14
2.25
3.00 3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Hong Kong
6.75
0.50
0.50 0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
India
9.00
4.75
7.75 7.75
7.50 7.50
7.25
7.25
7.25
7.25
7.50
7.75
7.75
Indonesia
9.50
5.75
5.75 5.75
5.75
5.75
5.75
6.00
6.50
7.00
7.25
7.25
7.50
Korea
5.25
1.50
2.75 2.75
2.75
2.75
2.50
2.50
2.50
2.50
2.50
2.50
2.50
Malaysia
3.50
2.00
3.00 3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Philippines
7.50
3.50
3.50 3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
Singapore
3.25
0.17
0.18 0.18
0.18
0.18
0.18
0.18
Sri Lanka
Russia
6.50
17.00 17.00
1.50
0.10
1.50
1.75 1.75
12.50
5.75
30.00
LatAm
Colombia
11.00
11.00
11.00
11.00
13.75
4.00
4.00
3.75
3.50
3.25
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.25
3.50 3.75
4.00
4.25
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
3.50
3.50
3.50
3.50
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
4.00
4.00
4.00
4.00
4.00
3.75
3.75
3.50
3.50
3.50
3.50
3.25
3.25
3.25
3.25
3.25
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
2.75
2.75
2.75
2.75
2.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
7.75
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
7.75
7.75
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.50
7.75
7.75
7.75
7.50
7.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.25
2.25
2.00
2.00
2.00
2.00
2.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.75
3.75
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
11.25 11.25
3.00
Asia
1.75
2.50
2.25
0.50
0.50
7.50
7.50
7.50
7.50
1.75
1.75
3.25
3.25
4.00
4.00
1.50
0.21 - 0.21
12.00
7.50
9.50 9.50
9.50
9.50
9.00
9.00
9.00
9.00
9.00
8.50
8.50
8.50
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
8.00
7.50 7.50
Taiwan
3.63
1.25
1.88 1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
1.88
Thailand
4.75
1.25
2.75 2.75
2.75
2.75
2.50
2.50
2.50
2.50
2.50
2.50
2.25
2.25
2.25
2.25
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Vietnam
15.00
6.50
9.00 9.00
8.00 8.00
7.00
7.00 - 7.00
7.00
7.00
7.00
7.00
7.00
7.00
6.50
6.50
6.50
6.50
6.50
6.50
6.50
6.50
6.50
6.50
6.50
6.50
Note: red arrows means rate hike ,green arrow means rate cut.
Source: Deutsche Bank, Central Banks, Haver Analytics
7.25
1.75
6.50
1.88
1.50 1.50
6.50
6.50
1.50
15 June 2015
Max Trough
(2007- policy 2013
2008) rate* Jan Feb
Page 15
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Q3-14
Q4-14
Q1-15
Q2-15
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
1.7
1.5
US
OLE3US
2.2
2.0
1.6
1.5
1.9
1.8
1.6
Euro area
OLE3EURA
0.8
0.3
0.3
0.2
0.2
0.3
0.3
Japan
OLE3JAPA
-0.3
-0.7
-0.5
-0.8
-0.7
-0.5
-0.2
China
OLE3CHIN
7.7
7.3
7.0
7.2
7.1
7.0
6.9
India
OLE3INDI
6.7
6.9
6.9
6.9
7.0
6.9
6.9
Russia
OLE3RUSS
3.1
1.8
1.2
Brazil
OLE3BRAZ
2.4
2.5
2.4
-3.9
2.9
-3.5
5.1
-1.0
100.9
101.5
102.3
103.9
103.8
103.8
1.4
6.8
DGNOCHNG
1.0
-1.6
1.5
JNTSMFG
13.0
12.0
12.0
EUESEMU
101.2
100.9
102.6
103.8
IP CHNG
4.1
4.6
-0.7
-0.1
-0.3
-0.1
-0.3
-0.3
0.3
Euro area
EUITEMUM
-0.7
1.6
3.7
0.5
0.0
1.0
-0.4
0.1
0.2
Japan
JNIPMOM
-5.3
3.0
6.4
0.2
4.1
-3.1
-0.8
1.2
US
RSTAMOM
3.2
1.8
-4.0
-0.9
-0.8
-0.5
1.5
0.2
Euro area
RSSAEMUM
0.7
3.3
3.0
0.5
0.3
0.1
-0.6
0.7
1.6
7.1
5.3
0.2
-0.3
0.8
2.4
-5.5
6.9
1.2
Labour market
US non-farm payrolls2
NFP TCH
237
324
202
329
201
266
119
221
UMRTEMU
11.5
11.5
11.2
11.4
11.3
11.2
11.2
11.1
JNUE
3.6
3.5
3.5
3.4
3.6
3.5
3.4
3.3
US
CPICHNG
1.8
1.2
-0.1
Euro area
ECCPEMUY
0.4
0.2
-0.3
Japan
JNCPIYOY
3.3
2.5
2.3
China
CNCPIYOY
2.1
1.6
6.7
4.1
7.7
251
280
CP inflation (%yoy)
India
Russia
RUCPIYOY
Brazil
-0.5
0.8
-0.1
0.0
-0.1
-0.2
0.8
-0.2
-0.6
-0.3
-0.1
0.0
0.3
0.4
2.4
2.4
2.2
2.3
0.6
1.4
1.6
1.6
0.9
1.6
1.6
1.7
5.3
4.6
4.3
5.2
5.4
5.3
4.9
5.0
9.6
16.2
15.7
11.4
15.0
16.7
16.9
16.4
15.8
6.6
6.5
7.7
8.1
6.4
7.1
7.7
8.1
8.2
8.5
-41.3
-42.3
-43.4
-45.5
-42.4
-37.2
-50.6
-40.9
15.6
21.1
21.2
22.6
21.1
22.6
19.7
8.3
9.0
5.1
17.2
10.7
13.9
15.0
13.6
15.0
15.0
62.3
47.8
58.1
55.9
59.5
1.4
USTBTOT
XTSBEZ
Japan
1.6
7.8
10.4
128.1
149.5
123.7
15.3
14.1
14.5
Other indicators
Oil prices (Brent, USD/b)
EUCRBRDT
101.8
76.4
53.9
CNGFOREX
3887.7
3843.0
3730.0
61.8
64.1
Quarterly data in shaded areas are quarter-to-date. Monthly data in the shaded areas are forecasts.
%pop=%change in this period over previous period. Quarter on quarter growth rates is annualized.
Pop change in 000, quarterly data averages of monthly changes.
Quarterly data are averages of monthly balances.
Source: Bloomberg Finance LP, Reuters, Eurostat, European Commission, OECD, Bank of Japan, National statistical offices, Markit/JP Morgan, Deutsche Bank Research
Page 16
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Index
DB FCI-16
DB FCI-high frequency
USMPF FCI
Index
Index
-1
-1
-1
-1
-2
-2
-2
-3
-3
-3
96
98
00
02
04
06
08
10
12
-2
-3
11
12
13
14
15
Note: Data for the USMPF FCI for Q1-2015 is an estimate based on available
data.
14
Q2-2015 estimates
based on high
frequency data
10
-4
94
Index
92
USMPF FCI
90
DB FCI-high frequency
-4
DB FCI-16
Va ria ble s
Contribution
Va ria ble s
Contribution
0.14
0.38
10YrT-note/3monthTbill Spread
0.00
Wilshire 5000
0.13
FedFunds/3monthTBill Spread
-0.02
Wilshire 5000
-0.06
FedFunds/3monthTBill Spread
-0.01
-0.23
10YrT-note/3monthTbill Spread
-0.01
-0.28
-0.04
-0.45
-0.13
0.05
Con t ri b u t i on
0.10
0.28
0.09
VIX Index
0.20
0.05
0.09
0.03
A BS Issuance (Relative to 4Q MA )
0.08
0.03
0.08
Top 5 n eg at i v e v ari ab l es
Top 5 n eg at i v e v ari ab l es
-0.17
-0.05
-0.05
-0.04
-0.05
10YrT-note/3monthTbill Spread
-0.03
-0.04
-0.02
-0.03
-0.01
Page 17
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
US labour market
Thousands
11.0
10.5
500
Thousands
6000
10.0
300
9.5
9.0
100
5250
4500
8.5
-100
8.0
3750
7.5
-300
7.0
-500
3000
6.5
Change in nonfarm payrolls (ls)
-700
6.0
-900
2010
5.0
2011
2012
2013
2014
2015
1500
2001
2003
2005
2007
2009
2011
2013
2015
GDP
% qoq
2250
5.5
2.0
pp
% qoq
1.5
1.0
1.0
1.5
0.5
France
Germany
Italy
Spain
0.5
Euroarea
0.0
1.0
0.0
-0.5
-0.5
0.5
-1.0
-1.0
0.0
-1.5
Consumption (ls)
Government (ls)
-2.0
Investment (ls)
-1.5
-0.5
-1.0
-2.5
GDP (rs)
-2.0
-3.0
-2.5
-3.5
2007
-1.5
2008
2009
2010
2011
2012
2013
2014
2015
Canada
90
%y/y
9
40
85
30
80
20
75
10
70
65
-10
60
-20
55
-30
50
-40
00
01
02
03
04
05
06
07
08
09
10
Page 18
11
12
13
14
15
3
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Dollar Bloc: In the US, the focus will be on the June FOMC meeting which comes out with median projections.
We also have Q1 Real GDP final data coming up later next week. In Canada we have Inflation and Retail sales
data among others.
Europe: In the Eurozone, a series of PMI data is lined up across the region along with Q1 Employment report
and Inflation data for Euroland. We also have the ZEW surveys for Germany. In UK, the data is centered on PPI
and CPI inflation along with ILO unemployment report. In CEE we have the July MPC meeting for Hungary.
Asia incl. Japan: In Japan the focus will be on the BoJ target rate announcement for June and the following
press conference
Country
GMT
Release
DB Expected Consensus
Previous
Tuesday, 16 June
GERMANY
GERMANY
UK
UK
UK
UK
UK
UK
GERMANY
GERMANY
EUROLAND
EUROLAND
EUROLAND
EUROLAND
EUROLAND
BRAZIL
US
US
NEW ZEALAND
06:00
06:00
08:30
08:30
08:30
08:30
08:30
08:30
09:00
09:00
09:00
09:00
09:00
09:00
09:00
12:00
12:30
12:30
22:45
CPI (May)
HICP (May)
Core input PPI (May)
Core output PPI (May)
Input PPI (May)
Output PPI (May)
CPI (May)
Core CPI (May)
ZEW survey (Current situation) (Jun)
ZEW survey (Econ.Sentiment) (Jun)
Core HICP (May)
HICP (May)
ZEW survey (Current situation) (Jun)
ZEW survey (Econ. sentiment) (Jun)
Employment (Q1)
Retail sales (Apr)
Building permits (May)
Housing starts (May)
Current account balance (Q1)
0.1% (0.7%)
0.1% (0.7%)
0.0% (0.1%)
0.0% (-11.8%)
0.2% (-1.5%)
0.2% (0.1%)
(0.9%)
0.2% (0.3%)
0.0% (0.1%)
0.6% (-11.3%)
0.1% (-1.6%)
0.2% (0.1%)
(1.0%)
63.0
37.3
(0.9%)
0.2% (0.3%)
0.4%
1,150.0k
1,145.0k
NZD0.20bn
1,100.0k
1,097.0k
NZD0.24bn
0.1% (0.7%)
0.1% (0.7%)
0.3% (-3.1%)
0.0% (0.1%)
0.4% (-11.7%)
0.1% (-1.7%)
0.2% (-0.1%)
(0.8%)
65.7
41.9
(0.9%)
0.2% (0.3%)
-16.5
61.2
0.7% (0.9%)
-0.9%
1,140.0k
1,135.0k
-NZD3.19bn
Events and meetings: EUROLAND: EUs Home Affairs Ministers meet on migration in Luxembourg 08:00 GMT. EUROLAND: EUs Moscovici to
speak at conference in Brussels 08:15 GMT. EUROLAND: ECBs Mersch to speak on OMT in Brussels 11:00 GMT EUROLAND: EUs Hill to
speak at Friends of Europe in Brussels 16:00 GMT
Wednesday, 17 June
ITALY
UK
EUROLAND
BRAZIL
POLAND
CANADA
US
NEW ZEALAND
08:00
08:30
09:00
11:30
12:00
12:30
18:00
22:45
5.4%
5.5%
-0.5%
0.8%
0.5% (3.0%)
0.3%
0.25%
0.6% (3.3%)
EUR4.06bn
5.5%
0.8% (-2.7%)
-1.1%
(3.7%)
0.8%
0.25%
0.8% (3.5%)
Events and meetings: EUROLAND: EUs Dombrovskis, Timmermans, Rompuy to speak at Think Tank 08:00 GMT. EUROLAND: EUs Dombrovskis
to speak at conference in Brussels 13:15 GMT. US: FOMC rate decision with projections 18:00 GMT
SWITZERLAND
NORWAY
UK
EUROLAND
US
US
US
US
US
RUSSIA
RUSSIA
US
06:00
08:00
08:30
09:00
12:30
12:30
12:30
12:30
12:30
13:00
13:00
14:00
Thursday, 18 June
Trade balance (May)
Norges bank overnight rate (Jun)
Retail sales (May)
Labour costs (Q1)
CPI (May)
Core CPI (May)
Continuing claims (Jun)
Initial jobless claims (Jun)
BoP (Q1)
Retail sales (May)
Unemployment rate (May)
Philly fed (Jun)
0.2% (4.7%)
1.00%
-0.2% (4.3%)
0.3%
0.2%
0.5% (0.0%)
0.2% (1.8%)
2,200.0k
278.0k
-USD117.1bn
8.0
8.0
CHF2.86bn
1.25%
1.2% (4.7%)
(1.1%)
0.1% (-0.2%)
0.3% (1.8%)
2,265.0k
279.0k
-USD113.5bn
(-9.8%)
5.8%
6.7
Events and meetings: EUROLAND: EUs Vestager to speak at Chatham House in London 07:30 GMT. NORWAY: Norges bank June overnight rate
to be announced 08:00 GMT.
Page 19
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Country
GMT
Release
DB Expected Consensus
Previous
Friday, 19 June
JAPAN
GERMANY
HUNGARY
EUROLAND
UK
UK
CANADA
CANADA
CANADA
CANADA
06:00
07:00
08:00
08:30
08:30
12:30
12:30
12:30
12:30
0.2% (-1.1%)
GBP10.0bn
0.7%
1.0%
0.5% (0.8%)
0.2% (2.0%)
0.3%
0.5%
0.5% (0.8%)
0.10%
0.1% (-1.5%)
(4.9%)
EUR18.6bn
GBP6.0bn
-GBP4.0bn
0.5%
0.7%
-0.1% (0.8%)
0.1% (2.3%)
Events and meetings: JAPAN: BoJ policy statement followed by governor Kurodas press conference 03:00 GMT.
Monday, 22 June
DENMARK
EUROLAND
US
07:00
14:00
14:00
5.20m
-0.20% (0.50%)
-5.5
5.04m
5.23m
Events and meetings: EUROLAND: EUs Dombrovskis to speak at Brussels Think Tank 17:00 GMT. EUROLAND: ECBs Constancio to speak at
Conference in Brussels 08:00 GMT.
AUSTRALIA
FRANCE
FRANCE
FRANCE
GERMANY
GERMANY
GERMANY
EUROLAND
EUROLAND
EUROLAND
POLAND
ITALY
UK
TURKEY
HUNGARY
US
US
US
US
US
01:30
07:00
07:00
07:00
07:30
07:30
07:30
08:00
08:00
08:00
08:00
09:00
10:00
11:00
12:00
12:30
12:30
13:00
14:00
14:00
Tuesday, 23 June
House price index (Q1)
PMI manufacturing
PMI services
PMI composite
PMI composite
PMI manufacturing
PMI services
PMI composite
PMI manufacturing
PMI services
Unemployment rate (May)
Retail sales (Apr)
CBI industrial trends survey (Jun)
MPC meeting (Jun)
MPC meeting (Jul)
Durable goods ex transport (May)
Durable goods (May)
House price index (Apr)
New home sales (May)
Richmond fed (Jun)
0.5%
1.0%
1.50%
0.8%
-0.6%
525.0k
511.0k
1.9% (6.8%)
49.4
52.8
52.0
52.6
51.1
53.0
53.6
52.2
53.8
11.2%
-0.1% (-0.2%)
15.00
7.25%
1.65%
-0.2%% (-1.6%)
-1.0% (-2.8%)
0.30%
517.0k (26.1%)
1.0
Events and meetings: TURKEY: Benchmark repurchase rate for Turkey 11:00 GMT. US: Feds Powell to speak on Monetary Policy in Washington
12:00 GMT. HUNGARY: July MPC meeting for Hungary 12:00 GMT.
HUNGARY
FRANCE
DENMARK
GERMANY
GERMANY
GERMANY
ITALY
CHILE
US
US
US
06:30
06:45
07:00
08:00
08:00
08:00
08:00
12:00
12:30
12:30
12:30
Wednesday, 24 June
Current account balance (Q1)
GDP (Q1)
Consumer confidence (Jun)
IFO - business climate (Jun)
IFO - current assessment (Jun)
IFO - expectations (Jun)
Hourly wages (May)
PPI (May)
Corporate profits (Q1)
GDP deflator (Q1)
GDP (Q1)
-0.1%
0.0%
-0.3%
EUR892.0m
0.1% (0.2%)
13.00
108.5
114.3
103.0
0.2% (1.2%)
1.6%
-1.4% (-0.6%)
0.2% (1.2%)
2.2% (2.4%)
Page 20
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Financial Forecasts
US
Jpn
Euro
UK
Swe*
Swiss*
Can*
Aus*
NZ*
3M Interest
Actual
0.26
0.20
-0.01
0.57
-0.25
-0.75
0.75
2.00
3.25
Jun-15
0.26
0.15
0.00
0.58
-0.25
-0.75
0.75
2.00
3.25
DB forecasts
Dec-15
0.75
0.15
-0.10
0.59
-0.25
-0.75
0.75
2.00
3.00
Mar-16
1.18
0.15
-0.10
0.60
-0.25
-0.75
1.00
2.00
3.00
10Y Govt2
Actual
2.40
0.53
0.85
1.97
n.a.
n.a.
1.81
3.01
3.81
Bond/Yields
Jun-15
2.00
0.40
0.90
2.05
n.a.
n.a.
1.90
2.75
3.75
Spreads3
Dec-15
2.45
0.55
1.00
2.30
n.a.
n.a.
2.60
3.00
4.00
DB forecasts
Mar-16
3.35
0.60
1.10
2.50
n.a.
n.a.
2.80
3.00
4.00
Exchange
Actual
EUR/
USD
1.13
USD/
JPY
123.5
EUR/
GBP
0.72
GBP/
USD
1.55
EUR/
SEK
9.24
EUR/
CHF
1.05
USD/
CAD
1.23
AUD/
USD
0.77
NZD/
USD
0.70
Rates
Jun-15
1.04
121.0
0.72
1.44
9.20
1.07
1.28
0.76
0.75
Dec-15
1.00
125.0
0.74
1.36
8.90
1.10
1.30
0.70
0.70
Mar-16
0.98
126.3
0.74
1.33
8.86
1.10
1.31
0.69
0.69
Rates
US 10Y rates
6.0
5.0
5.0
4.0
1.0
2002
2.0
4.0
1.5
3.0
3.0
1.0
2.0
0.5
0.0
10Y
2004
2006
2010
2012
2014
0.0
0.0
2002
-0.5
2004
2006
2008
2010
10Y
-1.0
2012
2014
2016
UK 10Y rates
2.0
2.0
1.5
7.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
6.0
5.0
1.5
1.0
1.0
0.5
1.0
2016
2.5
2.5
4.0
1.0
2.0
5.0
2.0
3.0
6.0
4.0
3.0
0.5
10Y
0.0
0.0
2002 2004 2006 2008 2010 2012 2014 2016
2.0
1.0
0.0
2002
10Y
2004
2006
2008
2010
2012
2014
2016
Page 21
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Appendix 1
Important Disclosures
Additional information available upon request
*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced from
local exchanges via Reuters, Bloomberg and other vendors . Other information is sourced from Deutsche Bank,
subject companies, and other sources. For disclosures pertaining to recommendations or estimates made on
securities other than the primary subject of this research, please see the most recently published company report or
visit our global disclosure look-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr
Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition,
the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendation
or view in this report. Peter Hooper/Michael Spencer/Torsten Slok
Page 22
15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
Additional Information
The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively
"Deutsche Bank"). Though the information herein is believed to be reliable and has been obtained from public sources
believed to be reliable, Deutsche Bank makes no representation as to its accuracy or completeness.
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Opinions, estimates and projections constitute the current judgment of the author as of the date of this report. They do
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Derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk.
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15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
be substantial. As a result of the high degree of leverage obtainable in futures and options trading, losses may be
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15 June 2015
Global Economic Perspectives: Sluggish recovery in US productivity and potential growth
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Page 25
David Folkerts-Landau
Raj Hindocha
Global Chief Operating Officer
Research
Steve Pollard
Global Head
Equity Research
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Deutsche Bank Research, Germany
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Deutsche Bank AG
Filiale Hongkong
International Commerce Centre,
1 Austin Road West,Kowloon,
Hong Kong
Tel: (852) 2203 8888