Needs more chocolate cake
- After the optimism of the Trump Twitter Feed last week, Sino-US relations seem to have run into a distinct lack of beautiful pieces of chocolate cake. Chinese President Xi made a veiled criticism of US President Trump's trade policy in a speech. Xi and Trump meet for dinner and discussions at the G20 Summit later this month.
- Italian fiscal policy will be examined at the Euro finance ministers' get-together in Brussels today. Italian Deputy Prime Minister Di Maio is suggesting that Europe should follow Italy's lead in breaking fiscal rules to boost growth. To be fair, Italy is just following the lead of Germany and France in breaking fiscal rules.
- Politics is likely to be more of a focus than economics, with the US midterm elections tomorrow. There is a greater-than-normal element of unpredictability with this election. Globally, surprise election results have been driven by people who do not normally vote turning out. Motivation to vote is higher than normal in the US, and there is the Taylor Swift effect of increased voter registration.
- The UK cabinet meets on Tuesday to discuss the interminably tedious process of exiting the EU. Markets would be wise not to pay too much attention.