Political storms brewing in Europe

Political uncertainty in Europe is on the rise and probably will lead to another round of fi-nancial market turbulence. However, it is too early to call a sustained market downturn. BayernLB Research expects such a downtick to start in the second half of 2019, when global economic activity will slow and result in a compression of corporate profits. These topics were part of the agenda of the IMF and Worldbank annual meetings.