EU: European Parliament To Vote On European Commission No Confidence
Wires are reporting that the EU parliament is to debate a motion of no confidence vs the European Commission, with a debate on Monday before a vote on Thursday.
“*EU PARLIAMENT TO DEBATE MOTION OF NO-CONFIDENCE VS COMMISSION
*EU NO-CONFIDENCE DEBATE MONDAY, VOTE THURSDAY,ECR'S SIMION SAYS” – bbg
Politico run a similar story citing six officials, with the full story here.
- "It is the first time in more than a decade that the head of the Commission has faced such a move."
- "The latest challenge to the European Commission president [Ursula von der Leyen], in what is proving to be a rocky first year in her second term in power, will see the German forced to appear in a debate about her leadership among lawmakers in Strasbourg on Monday, followed by the vote three days later."
- “At this stage, the vote is mainly symbolic — the majority of political groups have already signaled that they will vote against the motion of no confidence — but it underscores the growing anger with her in Brussels after a string of controversial moves and scandals.”
- "If the no-confidence motion were to pass, it would lead to the resignation of the entire Commission and trigger the complex process of appointing 27 new European commissioners."
There had been reports on the matter earlier in the day but it’s now seen as being official.
This from Simion on X:
@georgesimion "????It's official!
Motion of No-Confidence against @EU_Commission led by #UrsulavonderLeyen will be debated next Monday and voted next Thursday in the plenary session.
Time to be held accountable!"
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US TSYS/OVERNIGHT REPO: Reverse Repo Takeup More Than Reverses Month-End Jump
Overnight reverse repo takeup fell $180B Monday, the biggest drop since the start of the year ($233B on Jan 2) and more than reversing Friday's $150B jump.
- The latest level of $135.8B represents an 11-session low.
- A sharp drop-off in takeup was expected due to month-end dynamics reversing. Indeed the latest level is within the roughly $125-175B range seen in most of late April through the start of last week.
GBPUSD TECHS: Trend Needle Points North
- RES 4: 1.3913 High Sep 14 2021
- RES 3: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 2: 1.3605 1.382 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3593 High May 26 and a bull trigger
- PRICE: 1.3548 @ 16:33 BST Jun 2
- SUP 1: 1.3394 20-day EMA
- SUP 2: 1.3335/3232 Low May 20 / 50-day EMA
- SUP 3: 1.3140 Low May 12 and key support
- SUP 4: 1.3041 Low Apr 14
The trend condition in GBPUSD remains bullish and the latest shallow retracement is considered corrective. First key support lies at 1.3394, the 20-day EMA. A clear break of this average would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3232. For bulls, a resumption of gains would refocus attention on 1.3593, the May 26 high and bull trigger. Clearance of this level would resume the uptrend.
BONDS: EGBs-GILTS CASH CLOSE: Light Bear Steepening To Open Week
European curves lightly bear steepened to open the week.
- Core FI opened the week on the back foot, hitting the session's highs in mid-morning trade as weekend news was digested including Ukranian attacks on Russian military equipment and the US's announcement that it would raise tariffs on aluminium and steel to 50%.
- Also adding to the early bearish tone were EU bond suppply and Spanish manufacturing PMI coming in above expected.
- But yields would pare their rises over most of the rest of the session, as equities stabilized and US desks came in.
- In futures, rolling activity was heavy, with most Eurex contracts now around 40% through the Jun/Sep roll.
- Gilts mildly outperformed Bunds; periphery/semi-core EGB spreads traded mixed, closing off the early session wides.
- Tuesday brings Eurozone flash inflation and BOE appearances at the Parliamentary Treasury Committee, with the week's focus remaining on Thursday's ECB decision.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is up 1.3bps at 1.789%, 5-Yr is up 1.9bps at 2.083%, 10-Yr is up 2.4bps at 2.524%, and 30-Yr is up 3.2bps at 3.012%.
- UK: The 2-Yr yield is up 0.6bps at 4.029%, 5-Yr is up 1.9bps at 4.163%, 10-Yr is up 2bps at 4.667%, and 30-Yr is up 3.8bps at 5.41%.
- Italian BTP spread down 0.4bps at 97.6bps / French OAT unchanged at 66.4bps
