In the US, the behaviour of the equity market versus the level of employment is very different in the current recession compared to previous recessions. The recession this year stands out because of its sudden, enormous job losses, which were quickly followed by a significant albeit very incomplete recovery. The equity market, after a huge drop, has rebounded swiftly and made new highs although earnings –on a 12 month moving average basis- still have to rebound. For 2021, more than anything, earnings growth matters.
The composite PMI is stabilising at the global level but this is masking strongly diverging trends. The US and China continue to improve, India is a bit weaker but still at a very high level, whereas the UK has dropped slightly below 50. The big decline occurred in the Eurozone with the index dropping from 50.0 to 45.3...
The latest Google Mobility Report - published on 6 December – shows that customer traffic flows to retail and leisure businesses in Europe early this month continued to build on the momentum reported end November. This momentum is the result of the easing of containment measures in Europe...
