From Nomura, a heat-map and an attempt to assess Europe’s deleveraging efforts. In particular, “relative to the pre-crisis years of 2007 and 2010”.
The headline is that things are obviously better even if there are pockets of equally obvious concern. Namely, France…
… there are still several obstacles that need to be overcome before the eurozone can seamlessly break free from its long-standing troubles. Those obstacles include a notable lack of space for fiscal stimulus amidst still-high sovereign debt levels and relatively large Target 2 imbalances in the periphery. Creeping capacity constraints are moreover a concern for Germany. And France’s worsening levels of fiscal and external stress are a concern not least if – against our view – a new government were not strongly inclined to instigate domestic or broader European reforms.
Lots more in the usual place, including a large section on the UK.
President Le Pen: Small risk, big shock — Gavyn Davies, FT
Lyon, the capital of a Europe in crisis – The Nation
The US shouldn’t blame Mexico for “losing” at trade — it should blame Germany – FT Alphaville