Where next for 'over-banked' Europe?

Who would have thought 12 months ago that Europe would have become the destination of choice for investors in 2017? What has changed?

Well, the structural inefficiencies of the euro project have been superseded by recognition that the EU referendum created more uncertainty for the UK than for the rest of Europe.  Political risk has diminished for the moment as the results of the Dutch and French elections suggested that Europeans were not in the mood for a more extreme form of populism and after a long and sometimes challenging wait, European growth and at the margin, inflation, are showing signs of life. Time for central bankers to turn the tide at Jackson Hole? One sector that has been improving progressively o...