By comparing the evolution of retail prices with changes in producer prices, we find that only five out of 19 sectors (textiles, household appliances, cleaning products, telephone services and restaurants) lack long-term pricing power.
The fiscal burdens from Germany’s ambitious climate policies pile up only after 2030. In recognizing this, and labelling the 2019 climate protection law as partly unconstitutional as a result, Germany's Constitutional Court attempts to hardwire future generations’ interests into the political process.
What effect do changes in inflation have on equity performance? What do we expect moving forward? Monetary and fiscal easing periods tend to be favorable for equity investors, as equity tends to generate decent returns in periods of accelerating, but still manageable, reflationary pressures.
In the short run, a demand catch-up and the reduction in spare capacities will drive a business investment recovery… With the progressive easing of sanitary restrictions, normalizing capacity utilization levels will push up business investment by +18.4% in the UK, +5.4% in France, +4.0% in the US and +2.5% in Germany.
