Salient to Investors:

  • Over 33% of a Bloomberg poll of international investors say the euro economy is in its worst shape in more than a year and in danger of dropping into deflation, and the ECB is not doing enough to help.
  • Cyril Blaise at Banco Bilbao Vizcaya Argentaria said the euro economy is deteriorating, with European banks more interested in deleveraging than transferring cheap central bank credit into loans.
  • Just over a third see the global economy as improving, the lowest level since November 2013. A plurality of 44 percent said it was stable, and less than 20% see it as deteriorating.
  • 31 percent say the ECB’s monetary policy is too restrictive. 40 percent it is about right, and less than 25 percent it is too accommodative.
  • Mike Jensen at Lancashire County Council is skeptical that monetary authorities recognize the issues fully and said policy will continue to lag events.
  • Almost 75% view Draghi favorably versus 67 percent for Yellen.
  • Almost 25 percent said EU markets will be among the best returns over the next year versus 38 percent saying the US will.
  • 55 percent see inflation as a greater threat to the US than deflation or disinflation over the next year.
  • 37% said Japan’s economy was improving.
  • Peter M. Rup at Artemis Wealth Advisors said Euro equity markets have underperformed Anglo-Saxon equity markets for almost 2 years running now and offer better valuations: they will find capital support once they rise.

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