Morning Meeting: 2017 European Outlook

The video discusses the firming of economic data in Europe and the US, highlighting reflation trends and inflationary forces, particularly in Germany. It examines the bond market dynamics, including yield premiums and potential catch-up phenomena. The discussion also covers monetary policy expectations, with insights into rate hikes by the Fed and ECB, and the impact on financial conditions in the euro area.

What is the primary economic trend expected in 2017 according to the transcript?

• Decrease in inflation rates

• Stagnation in global markets

• Faster reflation in the US and Europe

• Deflation in the US and Europe

Which factor is contributing to the inflationary forces in Germany?

• A strong currency

• A weak labor market

• Decreasing energy prices

• A weak currency and energy price swings

What is the expected trend for bond yields compared to treasury yields?

• Bond yields are expected to decrease

• Both bond and treasury yields are expected to remain stable

• Bond yields are expected to rise more than treasury yields

• Treasury yields are expected to rise more than bond yields

How might the ECB's life be made easier according to the transcript?

• By a backup in bond yields

• By a stable currency

• By a decrease in bond yields

• By a decrease in inflation

What is the expected trend for the euro by the end of the year?

• Strengthening against the dollar

• Remaining stable against the dollar

• Weakening below parity with the dollar

• Strengthening above parity with the dollar