Because the ECB has been buying covered bonds for so long, it has been subject to complaints of distortion for several years. One of the most significant distortions created from bulk buying of government bonds and other high quality debt has shown up in Europe’s repo market. Source: FT
The state of Berlin has been ordered to pay a Muslim teacher €6,900 after it rejected her job application on the grounds that she wore a head scarf. The Berlin labour court ordered the state to pay the woman the equivalent of two months’ salary. A second case of a teacher whom the state rejected because of her head scarf is also currently being considered by the court. Source The Local
French President Emmanuel Macron invited his US counterpart Donald Trump on Tuesday to attend the country’s traditional Bastille Day military parade, despite public differences over the Paris Agreement on climate change. Source France24
U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash. Source Reuters
