What's different a year after the wildfires? | SaltWire #novascotia #firefighting #wildfires #newsLONDON - The Bank of England has sent a new signal that borrowing costs will fall earlier and further across Europe than in the United States, setting markets up for major shifts as investors play a monetary policy divide opening up across the Atlantic.
"This is the European pivot," said Florian Ielpo, head of macro at Switzerland's Lombard Odier Investment Management, who is positive on European and UK stocks. Since 2020, the United States has generated the lion's share of global equity gains. Economists polled by Reuters expect the U.S. economy to expand by 2.5% this year, versus 0.5% in the euro zone and 0.4% in the UK, as lavish government spending dubbed"Bidenomics" spurs investment but raises debt and the deficit.
The BoE, the ECB and other European central banks might regret sounding too dovish too soon, Lombard Odier's Ielpo said. BlueBay Asset Management portfolio manager Neil Mehta said the firm does not like bonds in the UK, partly because of relatively high inflation.