Eurozone Facing Tough Times Again

The European Central Bank faces a tough decision when it meets this week. Tightening to tamp down rising inflation from the energy shock of the Middle East war is riskier now that the recent PMI release indicates contraction, William explains. The unexpected weakness brings the specter of stagflation, squelching the economic optimism that prevailed prior to the war. … Also: The German economy, the Eurozone’s anchor, hasn’t been this weak since the Covid period. Officials warn of long-term pain. … And Toby traces the Europe MSCI’s comparatively poor earnings and productivity growth to Europe’s lack of AI powerhouses and other technology innovators, with the exception of ASML and SAP.