Central Bank

Russia will run out the first of his two sovereign funds, the Reserve Fund, in the course of next year and then begin to tap into the National Welfare Fund to cover the deficit between revenue and expenditure in the state budget.

The Ministry of Finance has in fact made it clear that public spending will be frozen at an altitude of 245 billion a year for three years in dollars, equivalent to a reduction of 20%, but not enough to stop the bleeding. "The committee approved the full freeze", Alexei Ulyukayev declared to press agency Tass.

In the last week, the European Central Bank has bought 9.734 billion euro of public sector bonds (government bonds and bonds of agencies and institutions) as part of the Quantitative Easing program, according to the release of the ECB. The amount refers to the securities purchased in the so-called ‘public sector purchasing Program (PSPP)’ which, together with the covered bond purchases, Abs, and corporate bonds is part of QE by 80 billion euro per month.

"Now is the time to be pragmatic." Wolfgang Schaeuble, the German finance minister, chooses an interview with the Welt Am Sonntag to return to thunder against the EU Commission and, without naming it directly, its president, Jean Claude Juncker. "If you do not want to get all 27 together from the beginning, then we’ll start with a few. If the Commission is not part of it, then we will take matters into our own hands and solve the problems between the governments," Schaeuble said, noting that after the Brexit vote on this "is not the right time for big visions. The situation is so severe that you must stop playing the usual games of Europe and Brussels."

Puerto Rico has been saved. The US president, Barack Obama, will sign a law that was passed by Congress and that will allow the restructuring of the debt of the American territory, which threatened to declare default in the coming days. A decision that opens the way for the restructuring of the debt of 72 billion dollars in bonds and the governor of Puerto Rico, Alejandro Garcia, had clearly stated that he could not honor the deadline of 1 July, amounting to $ 2 billion.

What will happen next is very difficult to assess, and this lack of visibility is the very reason why markets should remain very volatile and unpredictable over the months to come.
Politics will outshine market fundamentals, where the UK and the EU will enter into long and complex negotiations.

Christine Lagarde, during the forum Aspen Ideas Festival in Colorado, USA, while showing that the financial markets have "by far underestimated" the outcome of the vote in Britain, noted with respect for democracy, the outcome of the referendum last Friday.
"We take note of the decision by the people of the UK and urge the British authorities and the EU to work collaboratively to ensure a smooth transition and a new economic relationship between the United Kingdom and the European Union, clarifying procedures and big goals that will drive this process. "

The Swiss National Bank (SNB) intervened in the foreign exchange market after the "yes" of Britons to Brexit, the exit of Britain from the EU. This was confirmed by the SNB in a statement today. The National Bank has announced that continues to remain active on the market.

The result of the referendum in the UK has resulted in growing pressure on the franc, the SNB noted. The euro rose to start the day below the threshold of 1.07 francs to 1.0624 francs, its lowest level since August 2015. The Swiss currency is seen as a traditional value of refuge in case of major political crisis.

Credit Suisse expects to Britain a period of recession in the second half of 2016, significant interventions by the Bank of England and a generalized economic slowdown eurozone.

The bank expects this scenario as a result of the success of Brexit in the referendum, calling it in a statement "is the most significant withdrawal from the need for integration since the Second World War. While the current output path is not yet clear, however, there are profound implications for Britain. we expect a recession in the second half of the year and monetary interventions by the Bank of England ".