European Market Outlook: Political Shocks and Drama

The video discusses the state of European banking shares, highlighting their recovery due to moving away from negative interest rates. It explores political risks in Europe, suggesting a shift from populism to a centrist approach in 2017. The discussion includes market outlooks, emphasizing the importance of fiscal policy over monetary support. Predictions for earnings growth and economic recovery are made, noting a strong cyclical uplift and improved consumer confidence.

What factors are contributing to the underperformance of European banking shares?

What expectations are there for the European banking sector moving away from negative interest rates?

What are the potential impacts of political shocks on the European market in 2017?

How might the political landscape in Europe change in 2017 compared to 2016?

What role does fiscal policy play in the outlook for European stocks in the coming year?