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Talks about talks

| Posted by: Paul Donovan | Tags: Paul Donovan

  • German talks about talks about a coalition were supposed to end. A deadline was reached. However, the talks about talks continue today, because more time is needed and flexibility in deadlines is useful when dealing with complex political negotiations. Sadly there is no flexibility in the EU-UK UK-EU divorce proceedings.
  • US tax cut proposals have passed the relevant Senate committee with a few essential amendments (tax breaks for private jet users, for instance). A vote in the full Senate is hoped for late November or early December – but there are several obstacles that need to be overcome.
  • ECB President Draghi, who remains temperamentally addicted to easing, is scheduled to speak. Bundesbank President Weidmann, who is not known to favor easing, is scheduled to speak. The contrast in tone could be quite interesting.
  • There are minor distractions for markets elsewhere. Housing data in the US is not likely to excite many people. There are brokered talks in Zimbabwe between Mugabe and the military over a transition of power, but this has limited global financial market impact.