Consumer prices dominate headlines, but tight labor markets and upward pressure on wages might be better indicators of where the European Central Bank and Federal Reserve are currently heading. Host Ronald Temple discusses with Matthieu Grouès, CIO of Lazard Frères Gestion (LFG), the fascinating global macroeconomic picture: the potential for higher-than-expected interest rates and mild recessions in the United States and Europe, the uncertain outlook for spending in Europe next year, the complicated growth picture in China—and in the face of everything, the markets’ stubborn “optimism.”