Merkel forms coalition government

Yesterday’s markets

7th February 2018

  • CAD - Trade Balance
  • NZD - Employment Change q/q
  • NZD - Unemployment Change q/q

After 24 hours of talks yesterday, Germany announced this morning a deal between German Chancellor Angela Merkel’s party and the Social Democrats had been reached to form a coalition government. The talks between the two parties began four months ago after the SPD offered Merkel a life line to save the country from going to another election. However, the SPD had previously ruled out reforming the grand coalition in the run up to the election. The coalition deal will now be voted on by the 464,000 members of the SPD. If the members vote no, it is likely Germany will have to go back to the polls.

Today’s markets

6th February 2018

  • USD - Crude Oil Inventories
  • NZD - RBNZ Monetary Policy Statement
  • NZD - RBNZ Gov Spencer Speaks

UK Prime Minister, Theresa May and her Brexit cabinet committee will be meeting today to begin to discuss what a future relationship between the UK and the EU could look like. The EU are expecting the UK to clarify this position by Friday. The meeting today will focus on the Northern Ireland and immigration issues with the talks moving to trade tomorrow.