JPMAM's Flanders: A sombre outlook for the eurozone

JPMAM strategist Stephanie Flanders has said she is 'sombre' about the prospects for Europe and other developed markets, in a reversal of the optimism she felt at the start of the year.

She said the European Central Bank will be unable to solve the economic problems of the region by itself. Instead, individual governments must develop complementary and cohesive fiscal policies to help drive growth. "It is not a fundamentally different story to a few months ago, but I am feeling, along with a lot of people, more sombre about Europe," she said. "Even the ECB does not think the ECB can do this alone. The tools it has are not sufficient for the job. At the turn of the year, if you were to have more concrete structural reform in cases like Italy, more cohesive fiscal poli...