14
Oct
Economic downturn in the EU at the end of the year
The health crisis is making a comeback in Europe. The ECB is monetising public and private debt. Capital markets are under control. The agreement of 21 July strengthens the euro. Significant downside risks for equities.
Key points
- Economic downturn in the European Union
- Germany shores up European growth
- EU rules on public debt will have to be rethought
- Germany leads in terms of government aid
- ECB is monetising public debt and supporting businesses
- Sovereign debt spreads and yields decrease
- 21 July agreement strengthens the euro
- Significant consolidation risks for European equities
