‘Triple-Digit Club’: Spanish Stocks, Bonds Slide, Spread To Bunds Hits 100bps As Rajoy Faces No-Confidence Vote
Oh, good. More political turmoil in Europe.
If you're the ECB and you're aiming to try and tweak the forward guidance on APP to tip a September wind down, just about the last thing you need is more problems in the periphery, but it looks like trouble's a' brewin' in Spain where Ciudadanos is all set to back a no-confidence vote against Rajoy, just a day after he managed to get a budget passed.
Jose Manuel Villegas, the party’s secretary general, made the announcement on Friday, in a televis
This vote of no-confidence is a consequence of the most recent ruling regarding a massive corruption scandal which started back in 1989 known as Gurtel case. Current spanish prime minister Mariano Rajoy was found as a “non-reliable source” when he was forced to testify.
Sometimes the market just reacts without considering what has really happened.
IMHO removing a party found guilty of large scale corruption, money laundering and fraud out of power should never be bad news for markets or risk premia.
oh trust me, I’m no fan of Rajoy.
Ciudanos does not back the no-confidence vote, as it the socialist party that wants to govern, presumably with direct and/or indirect aid of Podemos and the various nationalist parties. Ciudanos wants elections.