Market Information Thursday 10 September 2020

The number of companies declared bankrupt decreased further in August 2020 in the Netherlands. 32 fewer companies were declared bankrupt than in July 2020. This is the lowest figure in 21 years, based on figures from Statistics Netherlands (CBS). A major side note that should be made here, is the fact that the current corona crisis does not immediately cause a bankruptcy peak. Because many companies are weathering the crisis with financial support provided by the Dutch State.

Dutch economists surveyed by economist magazine ESB are of the opinion that the government still has a lot of room to stimulate the economy. Nine out of ten economists do not foresee a problem if government debt increases to 90.0% of the gross domestic product (GDP). The current debt equals around 63.0%. Two in three even think that 120.0% is a sustainable level.

The European Central Bank (ECB) is exerting more pressure on major international banks. This is to ensure that their activities in the European Union can operate profitably and operationally independently after the transitional period of Brexit, addressed in the British business newspaper Financial Times. This transition period will expire at the end of this year. According to the ECB, much remains to be done such as moving assets and staff from London to operations in the eurozone.

The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap increased with 3 basis points to -0.19% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.