Two types of stories dominated the chatter in the newsroom this week.
The favorite of the water cooler? The Obsen top -class CEOs with the departure of Nestles boss about an undisclosed affair with a subordinate and the resignation of Suntorys CEO about the possible purchase of illegal substances, which cause a stir both in the news editorial offices London and Singapore.
But what the news switch kept the most was the volatility of the bond market, which could pass in the next week. In the past few days we have had a number of guests who share their views of some of the most important earnings movements on the British market and over Europe in decades.
And even more it could be to come next week …
Trust or no trust is the question
France is in the epicenter of European bond income uncertainty.
On Monday there will be a vote in the government that is appointed by Prime Minister Francois Bayrou – and the government party will almost surely lose.
Photo by Cuellar | Flickr | Getty pictures
Rivals France Insoumise, National Rally and the Socialist Party have all claimed that they will vote against the government. This increases the prospect of President Emmanuel Macron, who calls a quick choice, although it is more likely that he will try to assign another centristic caretaker government.
In a straw medium survey by the customers, Nomura found that the yields of French government bonds – or oats – had to become even more dramatic in order to cause a “severe loss of the international trust of the investor”. In a note, the bank referred to the next assessment of the sovereign debts in France of Fitch, which is to take place on September 12 as a key to observing.
Italy used to be the evil boy in Europe. Now France takes the baton
ECB to ‘deliberately’ uninformative ‘
Another turning point this week will take place if the ECB meets under the increased market volatility on Thursday.
The central bank is expected to keep interest rates at 2%, with HSBC’s prediction that President Christine Lagarde predicts a “double tendency”. The ECB itself emphasized the need to “deliberately uninformatively remain uninformative about future interest rates” in its report on his political meeting in July.
Market observers expect Lagarde to be asked about uncertainty in France during their press conference, but economists pretend that they will avoid answering directly.
Economic data:
Monday: German merchant data
Tuesday: French industrial production data
Thursday: US inflation data
Friday: German inflation data, British GDP data
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