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"Anti" politics again

| Posted by: Paul Donovan | Tags: Paul Donovan

  • ECB President Draghi speaks in Italy today,
    as the two Italian "anti" parties make progress towards forming a
    coalition government together. The Northern League and the Five Star Movement
    issued their first ever joint statement, and asked the Italian president to
    give them until Monday to come up with a plan.
  • The UK government has postponed a
    parliamentary debate on aspects of the endlessly tedious Brexit process. This
    is either because the government is concerned it might lose, or because the
    scheduled debate on plastic coffee cups is considered more important than
    Europe. Either explanation is plausible. The Bank of England left the way open
    to further rate hikes this year.
  • Malaysia has a new government, with PM
    Mahathir pledging to reverse the recent sales tax. This was a central point of
    the campaign, but does raise questions about the government's overall revenue
    base. Malaysian financial markets will reopen on Monday.
  • Spanish and Portuguese consumer prices are
    due, but are not likely to excite markets. The US export and import price data
    might give insight into whether taxing trade is affecting the competitiveness
    of those US companies that are part of global supply chains.