Europe in crisis.

Macro Bytes · Jul 27, 2022 · 22m

In this episode, Luke and Paul discuss the many challenges facing Europe at the moment, including: inflation, recession, energy prices, political uncertainty, and monetary policy tightening.

The key takeaways are

· Consumer sentiment in the Eurozone is at all-time lows. While these surveys probably overstate the degree of economic weakness, this kind of sentiment deterioration cannot help but have some impact on people’s spending patterns and so the economic outlook. Near term recession risks are therefore highly elevated.

· Going into the winter, Europe faces an even more challenging…