Job fight

Posted by: Paul Donovan

28 May 2019
  • Trade issues continue to plague investors and economists alike. There has been nothing official on the Trump Twitter feed, but US President Trump has been sounding positive about trade talks with Japan. Comments on China have been less constructive. EU officials warned of a negative reaction if the rather 1980s policy of quotas was brought back to life.
  • Italy is risking a sizeable increase in its budget deficit, in the form of a fine from the EU for having a sizeable budget deficit. The EU commission is considering starting the procedure that could result in an EUR 3.5 billion fine.
  • The European Union offers confidence data, which is of limited interest to markets. The EU leaders have a summit at which collective responsibility will be cast aside. It is time for national interests to come to the fore, as the various key jobs of the EU are distributed. Traditionally, EU jobs are a good way of disposing of politicians no longer wanted at home.
  • The US is releasing consumer confidence data. There has been a tendency for this data to overreact to the underlying economic position.

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