Target2 Imbalances Widen Again – Watch Italy

Target2 – the payment system used for intra-eurozone transfers – has widened again, with the largest two-month move since mid 2012. A look into its breakdown reveals that it is Italy that is almost completely responsible for the increase in liabilities. Ceteris...

Eurozone Growth Stuck in a Quagmire

Eurozone growth goes from setback to setback with last week’s GDP number being just the latest in a long line of similar disappointments.  Soft indicators have consistently overstated the strength of this year’s recovery, and the unpleasant truth is that as one...

Inflation to hold UK recovery back

There are some notable reasons for near-term reasons for optimism in the UK.  The housing market seems to be picking up, industrial production growth is looking up together with PMI data and the equity market has done well. All these are real and significant signs of...