Europe still trades below the United States, but sector mix, weaker growth and lower reinvestment returns explain much of the gap. The rerating has removed the case for treating the region as uniformly cheap.
Delistings, takeovers and the retreat of domestic institutional capital are narrowing London’s quoted market. The result is a weaker valuation and financing ecosystem, even though trading in its largest shares remains functional.
The European Central Bank has cleared the absorption of Mediobanca into Monte dei Paschi. The contested question in European banking this autumn is not whether transactions clear supervision, but where the right to decide them actually sits.
European households hold an unusually large share of financial assets in deposits. Working through what a sustained reallocation would and would not do to domestic equity valuations.