The double-edged sword of quantitative easing

Adrian Lewers, head of political risks and contingencyBeazley

If China is the global economy’s engine of growth, then the US is most definitely the foundation that supports its stability. In the US and even in Europe economic data is now pointing towards signs of stabilisation in domestic markets, raising optimism there may be further gains next year. US unemployment continues its steady descent, with figures from June showing a jobless rate of 7.6%, down from 8.2% over the same period last year. In the eurozone unemployment is falling and the Purchasing Managers Index (PMI) indicates expansion, both for the first time since the second quarter of 2011.