US tariffs, Greece and Italy all pose risks

Greece’s exit from its bailout on Monday was widely hailed by European policymakers as a sign of success, but its problems are far from over. Meanwhile, comments from President Trump emphasised that, despite the supposed tariff ceasefire between the US and EU, he could pull out of the deal at any time. And his reported suggestion that the US would buy Italian debt next year seems very unlikely to materialise, so we still expect bond yields in Italy to rise.