Michele: Italian Regulator Action Shows Frail Banks

The transcript discusses the frailty of financial systems, particularly in Europe, due to Brexit and regulatory actions. It highlights the impact of negative interest rates on banking, the uncertainty surrounding Brexit, and its effects on UK banking. The conversation also covers market reactions, the potential for recession, and confidence in short-term paper markets.

What observations were made regarding confidence in the short-term paper market?

What does the flattening of the yield curve indicate about the economic outlook?