The ECB cut rates for the second time, as expected, though amidst a strong bond/bund market rally that has now completely un-inverted that yield curve. This comes at a time when major businesses like Volkswagen are thinking about closing down factories due to how much idle capacity they have. What links all of these together, what explains all the facts, is that there was never a global recovery, only a transitory price illusion.
Eurodollar University's Money & Macro Analysis
Bloomberg Half-Empty Car Plants in Europe Spell Trouble for Workers
https://www.bloomberg.com/news/articles/2024-09-11/vw-s-german-factory-closures-highlight-wider-problems-for-europe-s-carmakers?srnd=phx-economics-v2
Volkswagen 2023 Annual Report Income Statement
https://annualreport2023.volkswagen-group.com/consolidated-financial-statements/income-statement.html
Volkswagen 2019 Annual Report
https://annualreport2019.volkswagenag.com/
ECB Press Conference Statement
https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2024/html/ecb.is240912~4f7b17040c.en.html
Bloomberg ECB’s Economic Hopes at Risk as Consumers Put Spending on Ice
https://www.bloomberg.com/news/articles/2024-09-09/ecb-s-economic-hopes-at-risk-as-consumers-put-spending-on-ice
Statista Half of OECD Countries Earn Less Now Than Pre-Pandemic
https://www.statista.com/chart/32831/real-wage-growth-in-the-oecd/
OECD Employment Outlook 2024
https://www.oecd.org/en/publications/oecd-employment-outlook-2024_ac8b3538-en.html
https://www.eurodollar.university
Twitter: https://twitter.com/JeffSnider_EDU
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.