Economics and the Financial Markets

In addition to your class tuition and study materials, you will receive the following:


Case Study

• The Economics of Oil: OPEC vs non-OPEC; what affects the price of oil; prospect for future prices.

Exercises

• MPC Exercise: Delegates are given extracts of the key economic indicators. In teams, they prepare their views on what they believe will happen to interest rates next time round. Each team gives a short presentation of their results, theories and predictions.

Other Extras

• Certificate of attendance

Level: Intermediate


Synopsis:
An in-depth guide to applying economic theory to financial markets, and interpreting fundamental indicators and monetary policies. At the end of this course, delegates will understand why it is a bad idea to call a trader at 1:30pm, and that the blue and beige books are not interior design guides.


At the end of the course participants will be able to: Be able to analyse commodities - cause or symptom of the economic cycle? . Understand the influence of emerging markets on the global economy . Understand how macro factors might have an effect on different asset classes . Be able to apply the knowledge practically to their role . Acknowledge economics as the science of manipulating macro wealth - for what reason? . See the big picture - drivers, key indicators, issues of the day . Understand macroeconomic fundamentals .


Prerequisites:
Some knowledge of market economics


Suitable For:
Traders, investment managers, market analysts and strategists.


Market systems

• What is economics?
• What are economics trying to achieve?
• Demand and supply
• A brief history of recent economic methods

Defining inflation - national income

• Gross National Product (GNP) and Gross Domestic Product (GDP)
• UK growth and interest rates

Unemployment

• Implications and measurements

Managing the economy - focus on fiscal policy

• Fiscal policy in economic management
• Budget deficits and budget surpluses
• Fiscal policy and the multiplier

Balance of payments

• Current accounts and financial accounts
• Visibles/invisibles
• Developed nations evolving into invisible exporters?
• Review of major trade data across major economies

Key drivers of currency

• Spot and forward currency
• Do forward rates reflect expected spot rates?
• Key drivers of exchange rates
• Impact of currency movements on investor returns

Current issues in economics

• The US trade deficit/US budget deficit/future implications
• Relationship between China and the dollar. Is China the cause or the solution to America's trade deficit?

The success of the BRIC Economics

• Review of key economic indicators for BRIC economies
• Who will be the next China?

Global warming and the impact on oil markets

• How can we use economics to analyse the solutions of carbon emissions?
• Implications of such policies for oil
• Will oil run out?

Managing the economy - focus on monetary policy

• Money supply and inflation
• Central bank targets around the world
• The US Federal Open Markets Committee (FOMC), the Beige Book and FOMC meetings
• The Monetary Policy Committee (MPC) in the UK and the minutes of MPC meetings