As France earned lower ratings, Dax fell to lows of the year. Germans, still seem hesitant to lead boldly. They have this dilemma of appealing to the home constituency while enacting their role as the powerhouse of Europe. The Germans have to reassure their followers and that seems some way off.
As the rich lose wealth in a stuttering stocks scenario, demand for Europe's big sellers like Mercedes and BMW may see declining sales. If oil prices persist at below $ 100, the Middle East may see less of purchasing power for costly European goods.
Negative interest rates seem to suggest long term stagnation a la Japan. Eurozone is too disparate in approach. Unemployment is soaring. Investors, long patient with Europe, seem to be giving up. T he Chinese data showed a better export performance; but in a slowing world, such export growth cannot be sustained.
ECB has to do a Fed trapeze. The million dollar question is will Germany let ECB be? For today, sellers will outnumber buyers in Europe.
As the rich lose wealth in a stuttering stocks scenario, demand for Europe's big sellers like Mercedes and BMW may see declining sales. If oil prices persist at below $ 100, the Middle East may see less of purchasing power for costly European goods.
Negative interest rates seem to suggest long term stagnation a la Japan. Eurozone is too disparate in approach. Unemployment is soaring. Investors, long patient with Europe, seem to be giving up. T he Chinese data showed a better export performance; but in a slowing world, such export growth cannot be sustained.
ECB has to do a Fed trapeze. The million dollar question is will Germany let ECB be? For today, sellers will outnumber buyers in Europe.
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