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Trump, the former KGB officer, and markets

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US President Trump's meeting with Russian President Putin has not been terribly well received by Republican politicians in the US. The US president did not surrender on the issue of sanctions against Russia, which limits any market impact. If tensions with Congress persist, markets may pay more attention.
  • UK Prime Minister May won a vote on the interminably tedious process of exiting the EU by three. The government accepted "hard" exit amendments to the Chequers declaration. The conspiracy theory is this is a negotiating tactic, demonstrating to the EU areas where the UK cannot compromise.
  • Assorted Bank of England speakers crowd the agenda, talking financial regulation (which has been used as a criticism of current EU policy). UK labor market data should show that the UK worker is not likely to be concerned by events in Westminster. Meanwhile, Italian consumer price inflation should confirm the lowest rate of the major Eurozone economies.
  • US industrial production may be looked to for some impact from US President Trump's tax increases. Singapore trade data was weaker than expected, prompting concerns of slowing trade. This is inconsistent with other data which shows a stable or rising real global trade to GDP ratio.