A busy end to the holidays

Editorial The Summer of 2019 is ending on the note of tensions between China and the United States calming down, but the trade war isn't over yet. Negotiations should resume in September, and already suggest a high number of rebounds. As for Brexit, panic is the by-word. Boris Johnson asked for Parliament to be prorogued until October 14 even while the opposition was busy preparing a bill to prevent a no-deal Brexit. So, we are waiting for a new proposal on the Backstop question, a determining factor in concluding a deal with Brussels. In this context, market volatility is up, with the VIX which reached 24% in August, and 10 year German bond yields hitting record lows. In addition, the central bank meetings planned next month are all keenly anticipated, in particular, the ECB meeting in mid September, which should announce the resumption of its asset purchasing plan and a reduction in its deposit rate. The FED meeting will follow a few days later.