Today, at European markets open, I joined dear friends Steve Sedgwick, Karen Tso and Ben Boulos at CNBC SquawkBox Europe to discuss global markets.
A striking disconnect is opening up across markets.
Bond markets are increasingly focused on fiscal credibility, sovereign debt and the structural cost of capital. Equity markets, by contrast, still seem heavily conditioned to celebrate any softer data as a signal that central banks may become less hawkish. That divergence cannot persist indefinitely.
Europe is a good example. The issue is not whether France is “the next Greece.” The more important question is why markets were willing to give highly indebted developed economies such a long free pass in the first place.
For years, abundant liquidity masked weak fiscal discipline. That era is ending, and the next phase of markets may be shaped less by centralbank liquidity and much more by fiscal discipline, sovereign risk and the real cost of capital.
#CNBC #Markets #FixedIncome #Europe #Macro #TantoCapitalPartners
A striking disconnect is opening up across markets.
Bond markets are increasingly focused on fiscal credibility, sovereign debt and the structural cost of capital. Equity markets, by contrast, still seem heavily conditioned to celebrate any softer data as a signal that central banks may become less hawkish. That divergence cannot persist indefinitely.
Europe is a good example. The issue is not whether France is “the next Greece.” The more important question is why markets were willing to give highly indebted developed economies such a long free pass in the first place.
For years, abundant liquidity masked weak fiscal discipline. That era is ending, and the next phase of markets may be shaped less by centralbank liquidity and much more by fiscal discipline, sovereign risk and the real cost of capital.
#CNBC #Markets #FixedIncome #Europe #Macro #TantoCapitalPartners
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Ai ajuns la finalul listei 🎉