Summary
Topic of the Month
- Mario Draghi’s report on Europe’s declining competitiveness poses a significant challenge for policymakers. While it has broad support, implementation will be hindered by fragmentation and a lack of political consensus.
- A combination of low investment and low productivity has undermined Europe’s competitiveness. Companies are hesitant to invest due to weak expected growth, creating a vicious cycle that is stifling further economic progress.
- Draghi advocates significant structural reforms -- including a rethink of regulation and more financial market integration -- and a more flexible governance framework within the EU that will not stifle progress in the adoption of new technologies.
Draghi’s report: a call to action for Europe’s...
Macroeconomics, Geopolitics, and Strategy
- Macroeconomic focus: If only LatAm’s fiscal policy could mimic its prudent monetary policy stance
- Macroeconomic snapshot
- Main and alternative scenarios
Macroeconomics, Geopolitics, and Strategy...
Global Investment Views
Fed rate cut boosts the markets but for how long
Capital markets whipsawed between a weakening US labour market and hopes that the Fed would successfully steer the economy towards a soft landing. Markets are optimistically interpreting the latest policy action, which could potentially boost consumption and investment. The other narrative is that the Fed would not have implemented a big cut without having apprehensions on the economic front. Our view is that truth lies somewhere in between – a combination of the two narratives will most likely play out.
Global Investment Views - October 2024
Macroeconomic and financial market forecasts
October 2024
Macroeconomic and financial market forecasts...
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