Coral BarryThursday 18 Apr 2019 11:36 amShare this article via facebookShare this article via twitterShare this article via messengerShare this with Share this article via emailShare this article via flipboardCopy link1.5kShares Advertisement Emery will have no more than £75m to spend (Picture: Getty)Emery is also keen on securing another striker with Danny Welbeck expected to leave the club when his contract expires this summer.Arsenal’s top four hopes hinge on the Gunners capitalising on their game in hand over Chelsea, who are also on 66 points.Emery’s side travel to Napoli on Thursday night for the second leg of their Europa League quarter-final tie.Winning the Europa League, something Emery did three times in a row as Sevilla boss, will guarantee a spot in next season’s Champions League.More: FootballBruno Fernandes responds to Man Utd bust-up rumours with Ole Gunnar SolskjaerNew Manchester United signing Facundo Pellistri responds to Edinson Cavani praiseArsenal flop Denis Suarez delivers verdict on Thomas Partey and Lucas Torreira moves Arsenal are not prepared to spend big money this summer (Picture: Getty)Unai Emery will have just £75million to spend in the summer even if Arsenal manage to secure Champions League football, reports say.Arsenal are currently in fourth place in the Premier League and remain in with a shot of winning the Europa League.Qualifying for next season’s Champions League would serve as a major boost to Emery, considering Arsenal have struggled for consistency this campaign.But Goal claim the achievement will not have a huge effect on the transfer budget, which will be set at around £75m.ADVERTISEMENT Comment Arsenal to hand Unai Emery £75m transfer budget if Champions League football secured Ramsey is joining Juventus this summer (Picture: GettyArsenal spent just over £71m last summer having missed out on Champions League football, spending the majority of that money on Lucas Torreira and Bernd Leno.AdvertisementAdvertisementEmery though will be motivated to avoid the possibility of having just £45m to spend should Arsenal miss out on a Champions League spot.Arsenal need a replacement for Juventus-bound Aaron Ramsey and Emery also wants to sign a left-back and wide attacker.More: FootballRio Ferdinand urges Ole Gunnar Solskjaer to drop Manchester United starChelsea defender Fikayo Tomori reveals why he made U-turn over transfer deadline day moveMikel Arteta rates Thomas Partey’s chances of making his Arsenal debut vs Man City Advertisement
“If nothing else, it’s a cost in productivity. It gets more difficult and expensive to complete transactions. You really turn the clock back.”Robert Palombi, managing director at S&P Global, noted that negative rates can incentivise pension funds or insurance companies to increase their investment risk profile, which in turn can enable riskier borrowing by companies, fuelling a negative feedback loop.“Negative interest rates lead to excessive risk-taking, which could create more credit pressures and possibly defaults that have a deleterious impact on the economy, and creates the need for more stimulus,” he said.However, he said such a scenario can be avoided if the negative rates policy is successful in stimulating economic growth. Negative interest rates set by central banks run the risk of making prudent asset allocation “impossible” for pension funds and other long term investors that relay on bonds for part of their portfolio, according to S&P Global.David Blitzer, managing director, index management, at S&P Dow Jones Indices, said a negative policy rate by a central bank will spread negative interest rates across the economy, which could lower bank profits but also hurt other financial institutions.“Insurance companies and other non-bank financial institutions facing long term liabilities at fixed nominal rates will suffer,” he wrote in a contribution to an S&P report on the range of impacts of negative interest rates. “Pension funds and other long term investors which rely on bonds for part of their portfolio will find prudent asset allocation impossible.”Overall, if negative interest rates spread beyond major financial institutions, society would return to being “cash-only”, said Blitzer.