Whatever?

US equity markets extended their losses yesterday as bond yields fell on the back of a decline in US regional bank shares. The S&P index lost 0.6%, the yield on 10y UST’s dropped more than 5 basis points. French PM Lecornu survived two confidence votes. Meanwhile, the US keeps trying to drag its allies into its statecraft framework, by proposing a joint levy on China. For Europe de-coupling seems like no entry territory, but its actions underscore a more assertive and strategic EU posture globally, event if it cannot match the depth and speed of the US. As an example, the EU yesterday unveiled a five-year defense roadmap aimed at closing critical capability gaps and modernizing its security architecture.