‘Our Institutional Geo-Economic Architecture’ Won’t Just Ride This Out, Rabobank Warns
Authored by Michael Every via Rabobank, 24 Hours US retail sales soft, yields down, stocks up, oil up. That’s one way to look at the last 24 hours. Or one can look at it –and the next 24 hours– more deeply. Let’s start with geopolitics, then look at AI, and try to tie it all together into a better market take than the above. As @desmondshum underlines: “Europe isn’t merely “slowing.” It’s being structurally out-scaled and outbid – squeezed between an America that owns the high-tech frontier and a China that has moved from low-end volume into the mid-tech industrial core Europe once dominated… …Without a hard turn –fast trade defence, real industrial policy, and bloc-level unity– Europe’s “model” doesn’t get reformed; it gets liquidated.” Macron just declared a European ‘state of emergency’, arguing EU-US tensions are far from over, and the bloc must become a global economic power or risk being swept aside. He called for Eurobonds to Make Europe Great Again. Within hours, Germany shot that down. Macron called for ‘Made in Europe’ policies. …
