1Macrobond, Goldman Sachs Asset Management.
2Although active QE has ended, the ECB will still be buying bonds as part of its reinvestment schedule which will be flexible in nature. It has also unveiled a new Transmission Protection Instrument (TPI) to address sovereign bond market stress.
3Eurostat. Based on hourly labor costs in euros.
4Goldman Sachs Global Investment Research, “European Daily: Q&A — ECB Strategy Review and Owner-Occupied Housing.” As of July 13, 2021.
5The European Green Deal is a set of policy initiatives by the European Commission with the aim of reducing greenhouse gas emissions by at least 55% versus 1990 levels by 2030 and reaching net zero emissions by 2050.
6As defined by the European Council on Foreign Relations.
7Macrobond, Goldman Sachs Asset Management. Based on ECB holdings as a proportion of outstanding Italian government debt in February 2020 and March 2022.
8This is because the Recovery Fund has set a legal precedent for using Article 122 of the Treaty on the Functioning of the European Union to issue debt for redistributive (grant) purposes.
9The euro also benefits from a healthy euro area current account position.
Environmental, Social and Governance (“ESG”) strategies may take risks or eliminate exposures found in other strategies or broad market benchmarks that may cause performance to diverge from the performance of these other strategies or market benchmarks. ESG strategies will be subject to the risks associated with their underlying investments’ asset classes. Further, the demand within certain markets or sectors that an ESG strategy targets may not develop as forecasted or may develop more slowly than anticipated.
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Date of first use: August 16, 2022. 282039-OTU-1624986