Good news ahead will buoy financial markets
We think that financial markets are going to recover thanks to several good pieces of news: The euro zone is not going to slip into recession at all, contrary to investors’ current expectations; In the United States, the Trump administration is going to seek compromises on trade with China, Japan, Europe and Mexico, as it has done with Canada; There is no serious cause for US growth to fall significantly lower than potential growth, which has increased thanks to the upturn in productivity gains.