The Big Four:
Riots across Paris this weekend by protect group gilets jaunes have wrought havoc across the city, seeing an emergency meeting called by the French President Emanuel Macron upon his return from the G20 Summit in Argentina. Despite not being significant enough in order to move the currency adopted by some 340m+ people across 19 countries, this dissatisfaction that has effervesced to the political surface of the French Republic embodied within these riots does increase the level of political risk within the European single currency. Increasingly, European politics in Germany, Italy, Spain, and now France poses a risk to the stability of the Euro. Respectively, the rising far-right, a weak coalition government endorsing fiscal profligacy, secessionist politics, and chronic dissatisfaction are plaguing these populations. Together, these four countries comprise of over 252 million people; nearly three quarters of the total Eurozone population without even mentioning their GDP contributions! Safety in numbers? It depends which ones you look at 4/19 or 75/100. Should investors lose confidence in an increasingly ailing Euro, contagion could set in. Of particular note this weekend was the progress on trade talks made between the United States and China. The frosty trading relationship between the two leviathans of international commerce has thawed with both leaders having claimed progress and an intention to reduce inhibitions to trade. Accordingly, defensive Dollar demands has weakened, leaving the US currency vulnerable today. Across the Pacific, the Chinese Yuan has enjoyed its biggest intraday jump in two years, making ground away from the important 7 figure within USDCNY.
Today’s Global Market:
Discussion and Analysis by Charles Porter
Not another headline Markets have either grown complacent or are reading beyond Trump’s headline statements. Over the past week markets have been presented with the challenge of fresh tariffs on China with retaliatory tariffs on the US also due to come into force in just under a week. In addition to that they have the […]
German Election With just 18 days to go to the German election, tensions are building. The centre right CDU whose leader Friedrich Merz is likely to be the next Chancellor is under fire for proposing a tougher immigration policy. That says his critics is similar to the far right AFD and verboten given the antipathy […]
Time to get a Thesaurus Removing tariffs just as quickly as President Trump thought to impose them is surely removing any elegance associated with Trump’s ‘favourite word in the dictionary’. On second thoughts, there likely never was any. In the two weeks that have passed since the President’s inauguration the tariff story goes something like […]