Pimco's Sundstrom Says ECB Has 'Very Poor Tool Box'

The transcript discusses the recent decline in inflation expectations and the European Central Bank's (ECB) limited tools to address economic challenges. It explores potential actions the ECB could take, such as adjusting maturity rates and fixed rates, but highlights the complexity of changing the capital key. The ECB is portrayed as more constrained than the Federal Reserve, leading to a cautious approach towards European equities and peripheral bonds.

Why might the ECB be described as 'handcuffed' in its policy options?

What is the general attitude towards European equities or peripheral bonds as mentioned in the text?