Calculating Fallout from the German Elections
Angela Merkel won her fourth term as chancellor. But the electoral showing of a far-right party, Alternative for Germany, dimmed her victory — and knocked down the euro’s value this morning.
The result is expected to lead to a tougher line on fiscal discipline in the eurozone, pushing up yields on government bonds in places like Spain and Italy, according to The Financial Times’s Michael Hunter.
But some expect the weakness of the euro to be short term, Reuters’ Saikat Chatterjee reports:
“The impact is limited, as the German election results is more of a domestic political story for now rather than a regional European trend, and the euro will be more sensitive to any shift in direction from the European Central Bank policy,” said Viraj Patel, an FX strategist at ING Bank in London.
What to Look Out For
Mario Draghi, the president of the European Central Bank, is to give a monetary policy update at the European Parliament on Monday.
Uber Grapples With Being Banned From London
Uber said on Monday that it was unclear why London’s travel authorities had decided not to renew its license. Reuters reports:
“Sitting down with TfL (Transport for London) representatives as soon as possible would be the most helpful thing to really understand their concerns to work out what they are,” Uber’s U.K. Head of Cities Fred Jones told BBC radio.
“It’s just not clear for us what their concerns might be.”
Uber’s chief executive, Dara Khosrowshahi, took the moment to engage in some self-reflection, according to Recode’s Johana Bhuiyan:
“Irrespective of whether we did everything that is being said about us in London today (and to be clear, I don’t think we did), it really matters what people think of us, especially in a global business like ours, where actions in one part of the world can have serious consequences in another.”
Regulator Wants More Self-Reporting From Finance
In the Obama administration, the Commodity Futures Trading Commission was one of the toughest financial regulators around. Under President Trump, it’s adopting a new strategy.
The Times’s David Enrich obtained a preview of a forthcoming speech by the commission’s director of enforcement, James McDonald:
“We also recognize that no matter how much corporate leaders may want to foster compliance within the company, when they detect misconduct their decision whether to voluntarily report it often comes down to their…