US trade policy flips or flops, again
- It is all change in the flip-flop world of US trade policy. Media reports suggest US President Trump will impose yet more taxes on Americans who dare to buy things partially made in China. There are also reports China will refuse to attend trade talks with the US. This is not official – there are no tweets – but Asian markets reacted.
- The detail of US inflation is showing that US firms are passing trade taxes on to customers. The rise in washing machine consumer prices is obvious. There is now also evidence that US firms that use metal are passing on the steel and aluminum taxes.
- Final Eurozone consumer price inflation is due, for August. This is not especially interesting. It never is. Praet and Coeure of the ECB are scheduled to speak. Following downward revisions to ECB growth forecasts, these remarks may be slightly more interesting.
- In the UK's interminably tedious divorce process from the EU, the balance of media comment focuses on a deal being done. Rightmove reported rising house prices last month, with stronger activity in London. Most British people care far more about the price of their home than the details of a deal with Brussels.