Markets may be failing to fully price in risks from geopolitics and the economic outlook — and the European Central Bank is monitoring this as a potential threat to financial stability, the group’s vice-president said Wednesday. “Markets have a very good perception, or illusion, of the macro economy. They believe that we are going to have a soft landing, they believe that geopolitical risks will not escalate, and so the risk premia for both bonds and equities is very compressed,” Luis de Guindos told CNBC’s Annette Weisbach. “So just in case we have a negative surprise in terms of the evolution of economy, in terms ... (full story)