The European Central Bank (ECB)’s non-conventional measures contributed 1,7 percentage points to Spain’s real GDP growth between 2014 and 2016, while also helping to cut the public deficit by 1,9 percentage points over the same period.
During the first half of 2017, the employment level in the Eurozone came back at its pre-crisis peak level. This was already the case for the first quarter but it has been confirmed for the three months to June, which reflects a catch up when growth is more robust and with less uncertainty”, says Philippe Waetcher, chief economist at Natixis AM.
To have a closer look at where new money is coming from, Carax-Alphavalue focuses on Q3. They think the 2017 picture “is gaining certainty.” They also point that 2017 earnings should be up €101bn, which is the largest variation of the last 11 years excepting €170bn rebound in 2010.
Nick Ottens via Atlantic Sentinel | In his annual State of the Union European Commission speech, president Jean-Claude Juncker’s proposals for closer EU integration is a throwback to the false dichotomy of more or less Europe. Furthermore, they contradict the “multispeed Europe” that has been endorsed by France, Germany, Italy and Spain.
Nick Ottens via Atlantic Sentinel | Germans are more centrist and optimistic than most Europeans. The French and the Spanish have yet to feel the economic recovery and are more inclined to vote for parties on the far left and the far right. The Italians are even more pessimistic, yet they remain wary of extremes.
The ECB governing board will meet today amidst a climate that doesn’t invite a move of any kind. It goes without saying that the only open option is whether or not to launch a discussion on how to undertake the tapering of its asset buying programme.
Ever since December last year, when it reached its low point, almost at parity with the dollar, the euro has not stopped rising. And the European economy is doing much better than that of the US.
Unlike next German elections, investors are getting nervous ahead of Italy’s elections, but t the truth is that risks look much lower than a year ago these days. In fact, analysts at Citi Research don’t expect a ‘perfect storm’.