Markets have largely brushed off speculation about the future of German Chancellor Angela Merkel as she stood down as leader of the Christian Democratic Union party. However, Franklin Templeton's head of European fixed income David Zahn believes her decision could have ramifications, both politically and economically, in the not-so-distant future.
We've long argued that politics and European Central Bank (ECB) monetary policy are the most influential factors governing the direction of European fixed income markets. Recent events in Europe have done little to dissuade us from that belief. The decision of German Chancellor Angela Merkel to step down as leader of the Christian Democratic Union (CDU) has potentially significant implications for both the political and monetary policy scenes in Europe, in our view. Angela Merkel to step down as German Chancellor in 2021 A new direction for Germany? Market response to the news ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
