09
Jan
Is a recession looming in Germany and the Eurozone?
Contraction over the last quarter in Germany? Leading indicators rather bleak. ECB remains confident. Policy rates unchanged. New opportunities in equities.
Key points
- GDP growth down -0.2% in Q3
- German industrial output drops -1.9%
- Slowdown in Europe is intensifying
- Five largest EU economies are weakening
- Leading indicators not optimistic
- Confidence gives way to concern
- Euro surprisingly stable
- ECB already in electoral mode?
- Outlook for euro fixed income markets in 2019?
- Following the Q4 shock, European equities offer new opportunities
- Significant adjustment of valuation and risk levels
- European equities command a 25% risk premium
