Europe on the mend

Jean-Philippe Bry's picture
Co-author: Drummond Brodeur
Drummond Brodeur

As part of Signature’s continuing effort to keep you and your clients updated with what we are seeing in the global economy, we wanted to share with you a brief video from Drummond Brodeur and J.P. Bry where they discuss key insights from J.P.’s recent European tour. Among the topics discussed are signs of growth in the Eurozone, European monetary policy, the influence of populism, Brexit, and the emergence of regional European champions to better compete with rivals in North America and Asia.


This commentary is published by CI Investments Inc. It is provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in this commentary is accurate at the time of publication. However, CI Investments Inc. cannot guarantee its accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein. This commentary may contain forward-looking statements about the fund, its future performance, strategies or prospects, and possible future fund action. These statements reflect the portfolio managers’ current beliefs and are based on information currently available to them. Forward-looking statements are not guarantees of future performance. We caution you not to place undue reliance on these statements as a number of factors could cause actual events or results to differ materially from those expressed in any forward-looking statement, including economic, political and market changes and other developments. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.


Submitted by Duncan Presant on

Just read that the majority of countries have already burned through their annual taxation revenues and are back to the borrowing table to finance activities. With these historic low rates, and the lack of fiscal control...apparently....where do you see this ending and how will they accomodate this year to year as the hole gets deeper?

Jean-Philippe Bry's picture
Submitted by Jean-Philippe Bry on

With respect to Europe and countries in the Eurozone, the fiscal situation is not only healthy but continues to improve. The average budget deficit in the Eurozone this year is 1.3%. Some countries like Germany are in surplus and it is growing. Some like France will be around 2.9% but also expected to improve in 2018. One should not underestimate the extent of fiscal austerity that took place over the last 8 years in the Eurozone. The pent up demand created out of those years of cutbacks is the reason the recovery is healthy. As the economy grows, it raises tax revenues. Compare this to the US that has a budget deficit today of 4%, which is likely to rise with tax cuts and hurricane relief.  

Add new comment

We welcome your comments and questions for the Signature team and will respond as soon as possible. Please note that all comments are reviewed for their relevance to the topics discussed in the blog, and that comments may be edited.

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.