Israel and Iran Trade Missile Attacks, Jeopardizing Peace Talks | Daybreak Europe 06/08/2026
Speakers
Lauren van Biljon
— Senior Portfolio Manager, Allspring Global Investments
Mark Cudmore
— Executive Editor, Bloomberg Live / Macro Strategist
Summary
The video covers market reactions to Israel-Iran missile strikes, rising oil prices, and Fed hike bets. Lauren van Biljon discusses adding European bond duration and expecting euro weakness. The ECB is expected to hike rates, and UK tech sector shows momentum.
- Israel and Iran trade strikes, oil jumps 4%+ on Strait of Hormuz concerns.
- Asian stocks fall sharply on AI pullback and geopolitical tensions.
- US jobs report fuels Fed hike expectations, with CPI data due Wednesday.
- Intesa Sanpaolo launches €31 billion bid for Monte dei Paschi.
- ECB expected to hike by 25bp on Thursday, potentially one-and-done.
- Lauren van Biljon is long European two-year bonds, adding duration.
- She expects the euro to weaken due to growth risks and Middle East conflict.
- UK tech sector strong but dependent on US capital and infrastructure.
Trade Ideas
Long European two-year bonds for duration
She is long European two-year bonds, using the Middle East conflict as an opportunity to add duration. She believes the ECB will hike once or twice and then pause, and that the macro backdrop supports adding duration at current yield levels, with ten-year yields above 3% being attractive over a six-month horizon.
Euro to weaken on growth risks
She is biased for the euro to weaken, citing that the euro is fairly valued on fundamentals but weakening on growth data and the conflict in the Middle East. She expects weakness at least until a peace deal, then may reconsider.
Up Next
This Bloomberg Markets video, published June 08, 2026, features Lauren van Biljon discussing European 2-year government bonds, EUR/USD. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Lauren van Biljon · Tickers: European 2-year government bonds, EUR/USD