29 July 2016 at 9:30 GMT
- Uncertainty dominates UK economic sentiment after Brexit referendum
- House prices in the UK are still growing strongly
- In the Eurozone business and consumer sentiment beats expectations despite Brexit
- Spanish unemployment is better than expected and down to 20% - lowest since 2011
- Italian 5-yr government bond auction result in lowest (auction) yield on record
By Walter Kurtz*
A bit more then a month has passed since the Brexit referendum. Let's start with looking at the UK.
1. UK 10yr gilts yield hit new lows
2. According to Moody's, UK banks are looking at a £68bn capital shortfall after Brexit.
3. Economic headlines out of the UK continue to indicate elevated uncertainty.
4. UK house price appreciation beat consensus - with home prices still growing above 5% per year.
5. The GBP
implied volatility index hit new lows not seen since May.
1. In the Eurozone
, the economy seems to be resilient to Brexit (so far), as business and consumer sentiment beats expectations.
seems to be gradually pulling out of the disinflationary mode. Is this sustainable? Market-based inflation expectations remain depressed.
5-year government bond auction sold new bonds at the lowest (auction) yield on record (26bp).
unemployment rate falls to 20% - amazingly that's the lowest level since 2011.
Elsewhere in Europe, the Norwegian
) is weakening (vs. the EUR
) in response to softer oil prices.
Turning to Food for Thought, we have 3 items today:
1. According to Vox.com:
- "More women work in middle-skill jobs than men, but men dominate jobs that actually pay well."
- "Women invest more in their educations but get a worse return on that investment than men."
2. In the United States
, more women now earn a 4-year college degree than men.
3. Here is a new study from Pew on US women in the political process.
- Voting patterns of US women in past elections.
— Edited by Clemens Bomsdorf* Walter Kurtz is an alias
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