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Tweets, graft investigations, and votes

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Trump Twitter feed was active over the weekend. Normally, investors do not care what the US president tweets; Twitter is not the same as reality. However, the president's position on the Russian affair is being criticized by some Republicans. With a small Republican Senate majority, this may have a bearing on market expectations for future legislation. 
  • The governor of the Latvian central bank (and thus a member of the ECB governing council) has been detained, but not charged, by the country's anti-graft bureau. The ECB governing council is so vast that the problems of one person have little sway over policy.
  • The Eurogroup of finance ministers gather together and are expected to vote for Spanish finance minister Guindos to be the next ECB vice-president. This means it is almost impossible for Spain to supply the ECB president to replace Draghi next year. The ECB presidency is decided by national politics not merit, obviously.
  • The British overlooked nationality and appointed a Canadian to run their central bank, of course. The Canadian in question is scheduled to speak today, with markets still questioning how much tightening is due this year. The long goodbye from Europe continues to be debated with endless tedium.