World stock markets are at record highs, particularly in the US, boosted by the promises of a heavy investment drive made by President Trump. But the fundamentals don’t support the markets’s strong performance, which is causing some concern.
Spain needs to make a definite decision to bet on changing its productivity model which guarantees sustained growth and prosperity for the population. To do this, it also needs to make a clear bet on research and science.
After 2015′ s Greece referendum, Tsipras got an attack of the jitters, a possible coup d’etat was insinuated, so he decided to turn the sense of the referendum around, giving in unconditionally to the demands of the Brussels bureaucrats. If Marine Le Pen were to win the second round of Sunday’s French elections, would she give into pressure from inside and outside Europe to renounce her goal of getting rid of the euro?
UK Prime Minister Theresa May’s call for a general election on June 8 is a very important coup for the Brexit process. It assumes these elections will allow her to bring together a lot of favourable intent, when the opposition is trying to find itself. With her majority reinforced, she will be in a stronger position to negotiate the Brexit deal.
The markets are beginning to reflect the “doubly” nerve-wracking effect of the fact that there are two electoral risks in France. It’s not only Marine Le Pen now; Jean-Luc Mélenchon is unexpectedly gaining ground.
The US stock market represents 54% of the MSCI world markets’ index and 60% of the MSCI for developed countries, according to The Economist. It’s another indicator to add to those we have mentioned before which point to the US market being overvalued.
Capitalism – or in fact any economy, if an alternative exists – should grow constantly, although not necessarily in quantity. It’s not so much about making a larger amount of exactly the same products and services, but about innovating and producing new goods and services at a lower cost.
How solid a banking system is is such a cloudy issue that it’s difficult to make a valuation without doubts or ambiguities. For example, in Italy it’s vox populi that the banking sector is very weak, but what about in Spain?
In the US and other parts of the world a phenomenon has occurred which partly explains the differences in income: the different levels of success which different companies have. But it seems that companies were more uniform in the past. The salary differential happened within a company and could be translated into expectations of promotion or a better job like in the age of the “American dream”.
Recently there’s again been talk of a two-speed Europe. During the mini-summit two weeks ago, Merkel, Hollande, Italy, Rajoy, gave the green light to this latest spin. The Spanish PM has said the country would be at the nucleus of this.