Canada learns the art of not dealing
- The Trump Twitter Feed was, once again, quite active. There was a lot about Russian meetings which markets do not care about. There was a lot of criticism of Canada and NAFTA, which markets do care about. US President Trump suggested NAFTA was one of the worst trade deals ever. Market sentiment almost certainly does not agree with that analysis.
- On Friday, one of the credit rating agencies – it really does not matter which – put Italy on negative outlook. The Italian government stressed that budget stability will be respected. Even at today's yields, the average interest rate on Italian government debt is falling (as today's yields are lower than they were in 2014, so refunding debt is cheaper).
- Americans are off celebrating the fact that they cannot spell the word "labour" correctly. The data calendar is quiet – with only final business sentiment opinion polls in Europe. Calling them "final" does not mitigate the fact that they are surveys.
- Mersch and Weidmann of the ECB are speaking. Generally, ECB speakers offer little excitement, as the policy path is mapped out for some time. However, media reports that the German government is not backing Weidmann as the next ECB president may add some interest.