Fleeting bonds, a crib of trust and the ECB meets

Two types of stories dominated the chatter in the newsroom this week.

The favorite of the water cooler? The outsken of top -class CEOs with the Departure from Nestles boss About an unknown affair with a subordinate and the resignation of Suntorys CEO about the Possible purchase of illegal substances Both cause a stir in the news editorial offices in London and Singapore.

But what the news switch kept the most was the volatility of the bond market, which could pass in the next week. In the past few days we have had a number of guests who share their views of some of the most important earnings movements on the British market and over Europe in decades.

And even more it could be to come next week …

Trust or no trust is the question

France is in the epicenter of European bond income uncertainty.

On Monday there will be a vote in the government that is appointed by Prime Minister Francois Bayrou – and the government party will almost surely lose.

Photo by Cuellar | Flickr | Getty pictures

Rivals France Insoumise, National Rally and the Socialist Party have all claimed that they will vote against the government. This increases the prospect of President Emmanuel Macron, who calls a quick choice, although it is more likely that he will try to assign another centristic caretaker government.

In a straw medium survey by the customers, Nomura found that the yields of French government bonds – or oats – had to become even more dramatic in order to cause a “severe loss of the international trust of the investor”. In a note, the bank referred to the next assessment of the sovereign debts in France of Fitch, which is to take place on September 12 as a key to observing.

The French flag hangs on May 8, 2015 above the grave of the unknown soldier in the Arc de Triomphe in Paris, during a ceremony at 70 years since the victory over Nazi Germany during the Second World War.

Italy used to be the evil boy in Europe. Now France takes the baton

ECB to ‘deliberately’ uninformative ‘

Another turning point this week will take place if the ECB meets under the increased market volatility on Thursday.

The central bank is expected to keep interest rates at 2%, with HSBC’s prediction that President Christine Lagarde predicts a “double tendency”. The ECB itself emphasized the need to “deliberately uninformatively remain uninformative about future interest rates” in its report on his political meeting in July.

Market observers expect Lagarde to be asked about uncertainty in France during their press conference, but economists pretend that they will avoid answering directly.