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Is the EU bailout of Germany failing?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Exit polls indicate that Mexico's presidential election has been won by the anti-establishment candidate Obrador. This was expected by investors. The question is whether the president-elect will secure a majority in Congress – something that has not happened in over two decades.
  • The EU's bailout package for Germany may not have worked, in spite of Greece agreeing to help. German Chancellor Merkel is facing ongoing dissent within the governing coalition. The junior partner, the Bavaria CSU, is still upset about immigration. Talks between Merkel's CDU and the CSU are scheduled for today.
  • US President Trump sounded upset about Europeans selling Americans things Americans want to buy. The Financial Times reports the EU is threatening to tax a fifth of US exports if the US imposes taxes on consumption of EU autos and auto parts. That would be a trade war. US carmakers are lobbying against the proposed US taxes, showing that tariffs are an outdated concept.
  • European producer price inflation is due. This breaks down extra-EU export prices for metals – a guide to reactions to the US import taxes. Several manufacturing sentiment opinion polls are due. For export orders, survey participants do not typically answer the question they are asked.