Eurozone banks dodge Covid bullet, but vulnerabilities remain
The banking sector has proved resilient during the pandemic, and eurozone banks will continue to play a significant role supporting the near-term recovery. That said, a sustained virtuous cycle between banks and the economy looks unlikely in our view.
What you will learn:
- Eventually, eurozone banks will have to deal with long-lasting weak profitability.
- Sector fragmentation means cost efficiencies remain limited, while revenue prospects are constrained by low interest rates and a relatively flat yield curve.
- Corporate fragility remains high in the sectors more heavily impacted by the pandemic.
Why China isn’t about to save the world economy
The earlier and faster than expected ending of zero-Covid restrictions in China bodes well for the global economy and adds to the recent run of positive news.Find Out More
Inflation – not past the peak and easing will be gradual for France
France has dodged soaring price pressures better than its eurozone peers, but we think its inflation will fall more slowly.Find Out More