Cash and equivalents across Stoxx 600 Europe companies (excluding financials, insurance and REITs) equate to 986 billion euros and are rebuilding, and combined with improving cash flow, are sparking capital spending and a speedier recovery when Europe reopens.

Banks face their biggest regulatory challenge in decades as the world’s most widely used benchmark for short-term rates – the London Interbank Offered Rate (LIBOR) – readies for retirement by end-2021, and for some U.S. dollar settings on June 30, 2023.

The RBI’s recovery strategy sees the government taking the lead, in our view. The central bank’s role, in this context, is to support the fiscal effort.

A report by Bloomberg and the International Capital Market Association (ICMA) on tough legacy bonds in APAC has found that work will need to accelerate significantly to mitigate potential for disruption of the APAC bond markets as a result of the transition from LIBOR to risk free rates (RFRs).

European banks’ cost-to-income ratios are likely to reach decade lows and maintain a sub-60% level from 2022, based on our scenario analysis.