Eurizon SLJ Capital

In this edition of The Long & Short, Neil Staines examines how swift US policy shifts contrast with Europe’s slower regulatory pace, shaping economic competitiveness and market sentiment.

• The US is enacting policy changes rapidly, while Europe remains stuck in slow-moving regulatory debates, which are impacting economic competitiveness and market sentiment.
• While the new US administration has drawn attention, the Federal Reserve's latest meeting underscored a slowing pace of rate cuts, reinforcing a more cautious monetary policy stance.
• Despite minor hawkish changes in the FOMC statement, Chair Powell emphasized a balanced stance, highlighting that policy rates remain restrictive and maintaining the implicit dovish bias.
• The Fed's policy trajectory depends on four key variables tied to the new administration—tariffs, immigration, deregulation, and fiscal consolidation—all of which influence hashtag#inflation, the labour market, and the yield curve.
• The ECB cut rates as expected but hinted at a more optimistic growth outlook. Real wages are rising, credit affordability is improving, and the global trade recovery is supporting European exports.
• While many factors shape the global hashtag#macro landscape, the most significant driver remains the economic and fiscal policies of the new US administration, with the Fed - and possibly global markets - pausing until more clarity emerges.

The opinions expressed in this podcast are those of the presenters and do not necessarily reflect the views of Eurizon SLJ Capital, Eurizon Capital, or the Intesa Sanpaolo Group. The information and opinions shared are intended solely for professional investors and should not be relied upon by other investors. Please note that the information provided in this recording is for informational purposes only and is not intended to be complete or constitute an offer to buy or sell securities or any derivatives. It has not been prepared in accordance with legal and regulatory requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. It does not constitute research on investment matters and should not be construed as containing any recommendation, advice or suggestion, implicit or explicit, for any investment strategy or financial instruments, the issuers of any financial instruments, or a solicitation, offer or financial promotion relating to any securities or investments. ESLJ and its affiliates do not assume any liability whatsoever for the contents of this podcast and do not make any representation or warranty as to the accuracy or completeness of any information contained in this communication.