US innovation & entrepreneurial spirit versus overregulation, left redistribution mindset and lack of innovation.
EU is straight on its way to become an open-air museum. Source: Michel A.Arouet, Augur infinity
Valuation of Public Companies with Market Caps Over $10B
The gap between European and U.S. equities continues to widen. While U.S. stocks trade at historically high valuations, their European counterparts lag significantly behind. source: A.Arouet
TRUMP: "Am I going to impose tariffs on the European Union? Do you want the truthful answer or the political answer?
REPORTER: "The truthful answer." TRUMP: "Absolutely." source : unusual whales
Europe doesn't have much AI companies but they aim to lead on AI regulations...
Source: European Commission
🚨What is happening with the eurozone economy?
Germany and France GDP fell 0.2% and 0.1% in Q4 2024. Italy's GDP was flat for the 2nd consecutive quarter. In effect, Euro-area economy did not grow in Q4 2024. Germany has contracted for 2 consecutive years in 2023 and 2024... Source: Bloomberg, Global Markets
As expected, the ECB just cut interest rates by 0.25% to 2.75% as inflation nears 2% and growth stays weak.
Indeed, with Germany and France shrinking, the pressure was on. The eurozone economy is barely moving with Q4 GDP flat for the eurozone, with Germany (-0.2%) and France (-0.1%) dragging things down while Portugal (+1.5%) and Spain (+0.8%) showed some life. The ECB is playing it cautious, adjusting rates based on data. They reiterated that the disinflation process is well under way and that they see inflation converging towards 2%. The ECB says it’s not locking into a rate path—just watching inflation and economic data closely. The bond market is taking it quite positively with 10y Bond yield down 7bps at the time of our writing. With growth slowing, more cuts might be on the table. Let see what Mrs. Lagarde have to say during the conference call - especially with regards to wages and tariffs. Baring a major positive surprise coming from Germany on the fiscal side, the Eurozone growth outlook remains bleak - this opens the door to at least 1 rate cut every quarter.
Can you believe it?
European banks have outperformed the Mag 7 over the past two years.... via @GoldmanSachs
Everyone knows that Japan is getting old, but look what is happening in major European countries.
Who is supposed to pay for pensions and healthcare entitlements in Germany, Italy and Spain in few years? Source: Michael A. Arouet
