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Hold on! Europe's not out of trouble yet
Following encouraging GDP figures from Germany and France, things have been looking up for the euro area. But whilst it may have just came out of its longest ever recession, Neil Staines, Head of Trading at the ECU Group, warns that its growth levels are “not enough” and that it won’t be able to sustain the current level of bond yields.
Neil says that the underlying economic growth is still too weak to prevent unemployment trending higher, which is likely to keep on rising for months if not years to come.
He also thinks that the deleveraging of the corporate and household sectors in the US and UK provide an increasingly stable platform from which the recovery can broaden and accelerate. But in the eurozone, such deleveraging has been absent.
Ultimately, Neil feels that little has been done at the national government level to enact the "much needed" structural reforms in the eurozone.
01:05 minutes
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