This is a good article from the Spectator. On the back of massive fiscal stimulus from Mr. Trump, US financial markets are still looking very attractive. The only downside is global conflict and potential trade wars. Despite all the bluster from Trump and his friends, they surely don’t want a trade war? The next critical date is May 12 for a decision on Iran‘s compliance to the nuclear deal. Will Trump kick the can down the road yet again?
This article from Fox World News is worth a read. It questions whether the European Central Bank should give another push to an economy that’s not rolling fast enough to raise excessively low inflation? It suggests that’s the question facing the bank’s 25-member governing council when it meets Thursday at its skyscraper headquarters in Frankfurt, Germany.
Personally, I would like to see further stimulus from the ECB. With national elections in both Germany and France in 2017, additional financial stimulus would be welcomed.
Because of the Euro and the EU’s fiscal constraint policy, individual Eurozone countries cannot decide their own fiscal policies – this has damaged growth in Southern Europe and austerity has been the prevailing policy for too. One important lesson from Brexit is that voters feel passionately about both immigration and excessive austerity.
If I were a betting man, I’d go for more stimulus on Thursday from the ECB.