Political risk in Europe is centered on outcomes in Germany and Italy. First, the SPD could decide not to participate in another coalition with Merkel. And second, the 5-Star Movement won a plurality of the votes.
A subordinated deal in a bank bailed out just a year ago and the currency at a three -year high underscore European investor confidence.
The investment climate is being shaped by two powerful forces. First is the very accommodative policy stance. In addition to the accommodative monetary policy, fiscal policy is also supportive.
Italy's election has the potential for some surprises. The Five Star Movement, which is polling first in surveys, has pledged a referendum on the euro if Brussels does not change its fiscal rules. Berlusoni's Forza Italia and Salvini's…
The working economic model in North America and Europe is one in which the central bank and the fiscal agents are working at cross-purposes, with the central bank doing the heavy lifting if stimulus is desired.
When we talk about winners and losers in Euroland, the natural question is, “how can you make everybody a winner?”. And I think this is important while Euroland goes through a cyclical upswing since that’s when reforms can actually be the…