2 similar headlines in the same week... but by the way, could the imf rescue them at the same time?
Can they really afford it???
$UBER announces the launch of Uber Trains
From 2029, 10 high-speed trains could connect Stratford Intl to Brussels, Paris, Lille & more via the Channel Tunnel. Partnering with Gemini Trains, tickets may be booked directly in the app alongside cabs, bikes and more. ➡️ Transport multinational Uber, known for its ride-hailing app, has announced it is launching a new train service between the UK, France and Belgium. ➡️ Uber Trains aims to run 10 high-speed trains from London to Paris, Lille and Brussels using the Channel Tunnel. ➡️ The trains will depart from Stratford International Station in East London and are expected to initially focus on the London to Paris route. Passengers would be able to book tickets via the Uber app. ➡️ Uber will partner with start-up Gemini Trains to launch the new service, which could be operational as soon as 2029, subject to receiving the necessary permits.
‼️Caretaker Prime Minister Dick Schoof is staring down a no-confidence vote today that could force his entire cabinet to resign.
➡️ His fragile government was gutted Friday when the New Social Contract party quit over disagreements on taking a tougher stance against Israel’s war in Gaza. ➡️ The NSC supported stronger measures, while the rest of the cabinet - including Schoof - refused to take that line. ➡️ Now left with just 32 of 150 seats, Schoof’s survival hinges on backing from opposition parties - many of whom are making demands he can't meet. ➡️ A collapse would plunge the Netherlands into uncharted political chaos, just months before a scheduled October election. Source: Bloomberg
France has done nothing to stabilize its fiscal deficit & debt/GDP.
It already has the highest tax burden in Europe. These higher taxes would throttle growth potential even more. With its political paralysis it won’t cut spending neither. Next confidence vote is coming. And OAT spreads seem to start reflecting that. Source: Michel A.Arouet, INSEE
Prime Minister Bayrou is calling for a confidence vote, risking another collapse of the French government.
OAT-Bund spread keeps widening Source: Blokland Research
And suddendly, EU exports to Kyrgystan exploded...
What happened? Source: Robin Brooks
Germany economic growth has been lagging behind other European countries.
And Chancellor Friedrich Merz is looking for excuses: “This task is bigger than some may have imagined a year ago – and I say that self-critically,” Merz admitted in a speech on Saturday in Osnabrück. “We’re not just facing a phase of economic weakness; we are in a structural crisis.” Germany’s economy contracted by 0.3% in Q2, more than expected, as consumer spending fell short. But the root of the malaise lies closer to home: While Merz enjoys the spotlight abroad, he’s been slow to deliver reforms at home; and that’s dragging down the national mood. Source: Bloomberg, HolgerZ
The German yield curve is steepening.
The gap between 2-year and 30-year bond yields has widened to its highest level since 2019 — driven by growing concerns over a looming surge in German government debt. Source: Bloomberg, HolgerZ
