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The boy who cried "wolf"

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US President Trump sent out a tweet threatening Iran with all sorts of dire consequences if Iran is mean about the US. The tweet used lots and lots of capital letters. The oil market, understandably reacted – oil prices fell a tiny bit. It is possible that US President Trump is unfamiliar with Aesop's fable of the boy who cried "wolf." After North Korea, markets are less inclined to take the US president seriously.
  • President Trump has also tweeted displeasure at the Federal Reserve tightening policy. US Treasury Secretary Mnuchin reassured the G20 gathering of finance ministers that the US president respects the independence of the central bank. Central bank independence is the main reason inflation has been low and stable. 
  • Nothing else of note came from the G20 finance ministers' meeting, because why would anything of note ever come from the G20? There was an amazing piece of insight to the effect that trade tensions are rising, and this is not a good thing. Markets may have worked that out already.
  • Broadbent of the Bank of England speaks today. There is still uncertainty over the timing of UK interest rate moves. Eurozone consumer confidence is due.