In the sort of unexpected twist that observers have come to expect from elections recently, UK voters have dealt a bitter blow to Prime Minister Theresa May, robbing her of her narrow parliamentary majority.
As we expected the European Central Bank has maintained its current policy stance. Despite market talk over the last few weeks for some indication on tightening, we are not surprised to see the ECB remaining committed to easing for the foreseeable future.
Following the latest labour market data, we do not change our baseline scenario of two more rate hikes this year, though latest data give some conflicting signals regarding future Federal Reserve policy.
Our British colleagues at Neuberger Berman tell us this is one of the most unusual UK general elections for a generation, in terms of both the manifestos on offer and the dramatic swing in opinion polls.
In reaction to the European Central bank (ECB) meeting today, Timothy Graf, head of macro strategy at State Street Global Markets; and Antoine Lesné, EMEA head of ETF strategy at SPDR ETFs, part of State Street Global Advisors, offer their views.
The French government has made its first proposals to reform the labor market. Its main idea is that competitive conditions have dramatically changed and it’s impossible to have a law that can solve all the issues.
Theresa May has currently a majority of 5 conservative seats in the parliament. This is a very narrow margin, which means she has to have the entire Tory party on board in order to be able to pass legislation.