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Policy in focus

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US markets are closed as Americans celebrate independence from Britain. This leaves markets somewhat subdued. There are purchasing managers' opinion polls in the European time zone, but these need not concern economists. The focus is likely to be on policy.
  • Trade policy is highlighted by the EU considering a conference of car exporters to consider trade taxes. The suggestion is that there would be a multilateral agreement to reduce tariffs on specific products. Given that some US auto tariffs exceed those of the EU, and that overall US tariffs exceed those of the EU, the pressure will presumably be on the US to narrow the gap.
  • German Chancellor Merkel is giving a policy speech to the German parliament. Normally this would not concern markets, but in the wake of last week's EU bailout of Germany over immigration, and given recent splits in the government, this may assume more importance.
  • Bank of England Deputy Governor Woods is speaking on banking stability. The BoE has been critical of the EU approach over the risks to European banking stability arising from the interminably tedious UK-EU divorce process, so this may attract some attention.