Balboni: Reality Check for Trump Market Unknowns

The video discusses market expectations surrounding Donald Trump's presidency, focusing on fiscal policy and its potential impact on the US and European economies. It highlights the uncertainty in Trump's policies and the market's craving for fiscal expansion. The discussion also covers the role of the US as a growth engine for the world and its effects on European exports and stocks. The video concludes with an analysis of yield curves and their implications for European companies.

What is the market's expectation regarding fiscal policy under Donald Trump's presidency?

• A contractionary fiscal policy

• An expansionary fiscal policy

• No change in fiscal policy

• A focus on monetary policy only

What challenge does Europe face in implementing fiscal expansion?

• Lack of political will

• High debt-to-GDP ratios in some countries

• Excessive fiscal surplus

• Over-reliance on monetary policy

How has the US been described in relation to the Eurozone's economy?

• A model for fiscal policy

• A source of inflation

• A consumer of last resort

• A competitor in exports

What recent development in the financial markets is seen as positive for European companies?

• Decrease in nominal growth

• Improvement in yield curves

• Reduction in operating leverage

• Increase in negative yielding bonds

What could potentially surprise positively in Europe next year?

• An increase in operating leverage

• A rise in political tensions

• A decrease in inflation

• A decline in US growth