🇪🇺 Christine Lagarde sent a clear warning to the market which suggests that the #ECB is still unlikely to hike rates anytime soon.
https://twitter.com/C_Barraud/status/1484066753420345344
🇪🇺 🇺🇸 There are at least four big divergences with the U.S.:
1/ Most of #inflation comes from #energy prices (~50%) as the EU is more dependent. After winter and/or if geopolitical tensions ease, the effect should reverse creating huge negative base effects in 2H22.
1/ Most of #inflation comes from #energy prices (~50%) as the EU is more dependent. After winter and/or if geopolitical tensions ease, the effect should reverse creating huge negative base effects in 2H22.
2/ In Eurozone, market #rents are not rising by 15% or more YoY and it will never happen ⚠ with several cities already implementing caps.
3/ Positive base effect from the spike of German VAT will normalize.
3/ Positive base effect from the spike of German VAT will normalize.
4/ Eurozone labour market is lagging the U.S. by ⚠at least ⚠ 3 quarters.
*Wages growth is contained.
*Wages growth is contained.
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