Although markets seemed to calm after last week’s activity, this doesn’t mean that the newsrooms are quiet. One of the big topics – is Deutsche Bank’s big derivative loss estimated at $60 million due to a risky bet placed on U.S. Inflation. According to Bloomberg.com, the derivatives were closely tied to United States inflation but miscalculated, forcing the bank to reevaluate its risk management operations.
Another EU-centric news item, which will likely affect trader/investor confidence in the one-currency, is Macron’s inauguration of the “Mother of all Reforms” promised during his presidential campaign. His promise for reform sought to make France economically competitive again. This first phase that Macron’s administration is proposing is on par with his campaign promises; to reform labor to open up the labor market. As it stands now the Marcon’s plan is to introduce his plan by decree to avoid it being bogged down and delayed by debate in the parliament. The plan is pro-business so it should have a positive effect on growth. The main points of the reform include, curbing pay given to organizations terminating staff, streamlining employee representation councils and redefying who decides on wages moving away from industry level deals to employee-employer level deals.
Finally the most economically relevant newsworthy story, is of course information giant Google’s discrepancy with the EU. If you are unfamiliar, the EU recently fined Google an exorbitant 2.4 billion for promoting its own shopping solution over its competitors, which is being reviewed for its ethicality.