Our new Global Economic Outlook has just been published – and it makes for a striking contrast. In the US, the drag from Trump’s policy agenda looks set to be outweighed by an AI-driven investment boom that may already be lifting productivity. In Europe, by contrast, the optimism seen earlier this year has faded as structural headwinds continue to hold growth back.

In this episode of The Weekly Briefing, Group Chief Economist Neil Shearing explores how AI may be transforming America’s potential, even as Europe struggles with long-standing weaknesses.

Plus, a decade on from a devastating market crash, Asia-Pacific Markets head Thomas Mathews unpacks what’s been driving China’s equity boom this year – despite the broader economic weakness – and how sustainable it really is.

Analysis and events referenced in this episode

Global Economic Outlook: US leads, others lag, in uneven global economy
Drop-In: US Outlook – Weighing the AI boom, labour constraints and the Fed’s next chapter
Drop-In: China Outlook – Can policy reverse economic weakness?
The economic and market impact of AI
More upside for China’s stock market as its AI+ plan gets going

Global Outlook: US leads, Europe lags | China’s equities boom

The Weekly Briefing from Capital Economics

Global Outlook: US leads, Europe lags | China’s equities boom