Boris Johnson resigns as PM
Today's news headlines:
‘UK’s Boris Johnson faces pressure from own party to speed exit’. Despite Boris Johnson’s resignation, the Prime Minister is expected to remain in place for three months while the Conservative party search for a new leader. However, the party is attempting to expedite the exit, with many believing the decision to stay on longer to be unwise. Graham Brady, the 1922 Committee Chair, has suggested that Dominic Raab serve as interim PM as growing numbers express their lack of confidence in Johnson. (Bloomberg)
‘Emerging market bonds face $237 billion cascade of defaults’. Bond defaults are on the rise in emerging market countries as global inflation puts downward pressure on already low incomes. Levels of distressed debt have doubled in the last six months. Sri Lanka has fallen into default, and many analysts are concerned about contagion as rising defaults create a spillover effect in other areas of the financial system. Portfolio Manager at T. Rowe Price, Sami Muaddi, noted the pressures countries are facing, such as the cost of living, which have fueled one of the worst sell-offs in emerging market debt. (Bloomberg)
European markets have had a mixed opening this morning while US equity futures point lower. Sovereign bond yields have moved mostly lower while oil prices hover around $102 per barrel.
European Central Bank President Christine Lagarde speaks: 12:55PM
Canadian Employment Change (June): 1:30PM
US Non-Farm Payrolls (June): 1:30PM
US Unemployment Rate (June): 1:30PM
US FOMC member John Williams speaks: 4:00PM
GBP/USD – 1.1934
GBP/EUR – 1.1824
EUR/USD – 1.0093
USD/CAD – 1.3021
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