The politics of l'ancien regime in old Europe
- It is Europe's turn for a little politics. Chancellor Merkel of Germany has announced that she likes being chancellor and she would like to carry on being one if that is alright with everyone. There had been a little uncertainty in the markets about whether she would be a candidate in next year's election.
- In France, the center-right presidential primaries saw former President Sarkozy defeated. Former Prime Minister Juppe challenged Former Prime Minister Fillon. Fillon was the surprise winner in the first round – opinion polls had placed him in third place. The accuracy of French opinion polls seems on a par with Anglo Saxon opinion polls.
- Trump has yet to nominate a secretary of state or a treasury secretary, but his tweets have been hinting about the defense secretary role. Investors will keep scanning Twitter. Bonds have stabilized near their post-election lows.
- There is a barrage of central bank speak today. There are several ECB speakers, led by Draghi, ahead of the meeting next month. Remarks by the Fed's Fischer will be monitored to detect any signs of a fissure between his views and those of Yellen.