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Another shutdown threat

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US President Trump has been active on Twitter. Most of the tweets are about media and the Mueller investigation, and do not matter to markets. However, there was also a threat of shutting down the US government if US President Trump's "big, beautiful wall" is not approved by Congress. There is a 30 September budget deadline.
  • Markets may be somewhat relieved that the political focus of the Trump Twitter Feed has shifted from trade to immigration. Both matter as long-term economic topics, but trade is a bigger threat to investors in the near term.
  • In the UK, Prime Minister May has received support from the Italian government in the interminably tedious process of pulling the EU and the UK apart. Given the attitude of many European politicians towards the current Italian government, this may not be helpful. UK credit data is due today.
  • German consumer price inflation for July is to be released and should confirm that German inflation is clearly above the ECB target. The ECB is unlikely to do anything, having said they do not intend to do anything for the time being, but it is a reminder of the inflation tensions within the Euro empire.