by David Hill | Jan 19, 2018 | European Economy
Sentiment in Europe has soared to its highest level since 2001. However, in Europe as elsewhere, such lofty sentiment should be taken as a warning for markets, not a green light. As we can see from the top-left chart, previous peaks in economic sentiment have...
by Bill | Jul 22, 2016 | European Economy
While most of the attention post-Brexit has been on the UK, we are far more concerned about Europe. Markets and the economy operate in a feedback loop, and the performance of European banks relative to the stock market points to a fall in lending ahead in Europe. ...
by Bill | May 20, 2016 | European Economy, Monetary Policy
An ongoing theme we kept coming back to throughout 2015 in the eurozone is that monetary policy tends to either too hot or too cold for the core or periphery. The ECB’s attempts to fight deflation and reflate the periphery have fuelled increases in German mortgages...
by Bill | Apr 22, 2016 | European Economy
One of the aims of loose monetary policy is to boost lending. The theory is lower rates and greater availability of liquidity will encourage lending and borrowing, which in turn will boost economic activity. Unfortunately, an increased supply of loans does not...
by Bill | Aug 27, 2015 | Global Economy, Monetary Policy
Stock markets are experiencing a classic crash pattern. Volatility has spiked and sharp sell offs are often being followed by powerful rallies. As with previous crash patterns, we would expect markets to continue to gyrate wildly for around the next 8 weeks, and...
by Bill | Jul 7, 2015 | European Economy
If you ignore the ongoing Greek sideshow, rarely has European money growth been as accommodative as it is today. Europe has enormous structural problems of too much debt, an inflexible currency and an ageing population, but cyclical factors are very positive. Leading...
by Bill | Jun 29, 2015 | European Economy, Featured, Framework
At the start of 2012, Variant Perception’s research team wrote a paper on the best way to break up the euro. A lot has happened since this paper was written. However, it still provides a clear, solid analysis of the problems leading up to the current situation....
by Bill | Aug 19, 2014 | European Economy
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...
by Bill | Feb 18, 2014 | European Economy, Featured
The composite eurozone January flash PMI showed accelerating expansion led by Germany, but the PMI readings are still only showing moderate growth, considerably below the momentum achieved, for example, in the 2009/2010 green-shoots revival. (click on pictures for...
